Progressive and Allstate have settled a patent dispute over technology that allows personal auto insurers to charge drivers based on how, where, and how much they drive.

Progressive sued Allstate, alleging the carrier infringed patents and trademarks for what it calls "usage-based insurance."

Progressive reports it has licensed certain patent portfolios to Allstate, and that the two companies had entered into an agreement to let their various trademarks co-exist. Terms were not disclosed.

Allstate markets its program as "DriveWise," while Progressive uses the "Drive" trademark.

Both insurers offer a device that policyholders can plug into their cars, which measures not only how much the customer drives but how fast they go, how often they brake hard, and other metrics.

Both companies advertise the ability of customers to earn discounts on their premiums, depending how they drive.

"This was about protecting and leveraging Progressive's investment of more than 15 years in usage-based insurance research, development, testing, and piloting," says Chuck Jarrett, Progressive's chief legal officer. "We have always said we are willing to license our intellectual property rights to others and that we will enforce those rights when necessary."

Special Reports /

Progressive Agrees to License Patents to Allstate

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