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

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

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Pay As You Drive insurance products have been touted byproponents as a way to rate drivers based on how much and how wellthey drive.

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At the ACORD-LOMA Insurance Systems Forum in Orlando, Fla. inMay 2009, Roger Grobler, chief executive officer of Australia-basedReal Insurance, said Pay As You Drive programs have sparked someprivacy concerns among regulators and legislators--most notably inCalifornia--depending on how information is collected and whatinformation is used.

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

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

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

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

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