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MyRate by Progressive

Prepare a summary and analysis of 8 to 10 articles relevant to the New Product/Service (MyRate by Progressive Insurance). APA Formatted with reference.

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Progressive's MyRate is a voluntary plan that is offered nationwide to track driving data and offer discounted rates based on the results of the data collected. The goal of Progressive is to encourage their customer's to drive less often and more safely which will result in fewer claims. MyRate tracks information such as annual mileage, times of day driven, braking and accelerating. This is viewed by many as an invasion of privacy, but the discomfort may well be worth the reward. The average savings per driver has fallen between ten and fifteen percent. This is realized as savings of $120 on insurance that costs $1,200 per year, a significant savings for most drivers.

The device operates through a cellular chip that accesses a vehicle's onboard computer and monitors when the car is running and captures the speed per second. When the vehicle is shut down the data is transmitted to the company via cellular phone towers. The data shows miles driven and time of day, and hard stops and fast accelerations. Customers are given the option of exiting the program during their trial period. This is ideal if it is evident after the first 30 days that their premium may increase due to aggressive driving. (Levick, 2009)

Progressive Auto Insurance customers who sign up and are eligible for MyRate receive a sensor, cable and software in the mail. The sensor is placed in the car where it records the customer's driving habits for a total of six months. After six months the information on the sensor is uploaded to Progressive and a discount is offered based on the customer's driving habits.

According to a current and highly advanced user of MyRate, it appears that the company is profiting more from the data that they receive, than the user is benefiting from the discount. In his case, the minimum discount of five percent is all that has been offered, much to his consternation. He offers the information that in order to save more than the very minimum offered discount you need to avoid driving your car on a regular basis, have short commutes and avoid driving at night. In some states the customer actually stands to be charged more for their driving habits after the ...

Solution Summary

The solution prepares a summary and analysis of 8 to 10 articles relevant to the New Product/Service (MyRate by Progressive Insurance). APA Formatted with reference.

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