NU Online News Service, Sept. 28, 2:53 p.m. EDT

Progressive's Pay As You Drive (PAYD) auto insurance product, called MyRate, has been approved in Nevada, the 16th state to approve the product.

Pay As You Drive insurance products have been touted by proponents as a way to rate drivers based on how much and how well they drive.

At the ACORD-LOMA Insurance Systems Forum in Orlando, Fla. in May 2009, Roger Grobler, chief executive officer of Australia-based Real Insurance, said Pay As You Drive programs have sparked some privacy concerns among regulators and legislators--most notably in California--depending on how information is collected and what information is used.

Some programs, he said, measure only miles driven through odometer readings, while others--like Progressive's--use telemetry devices. Still others have considered using GPS devices to determine where a car is at any given time, Mr. Grobler said.

Susan Rouser, Progressive spokesperson, said California is the only state that has raised concerns over the MyRate program.

The Progressive MyRate product is optional for insureds. According to the company, "Drivers who choose to sign up for MyRate receive a device that plugs into a port in their car and measures how, how much and when the car is being driven. Cars driven less often, in less risky ways and at less risky times of day can receive a lower premium."

Progressive said MyRate will continue to be rolled out to more states in 2009, pending state regulatory approval.

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Progressive PAYD Product Gets Approval In 16th State

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