As I was driving home on Route 80 Tuesday after work, I flipped the station to New Jersey 101.5, a local talk radio show that I normally don’t listen to because I’ve always found the “Jersey Guys” rather irritating. What kept me listening this time was a program that Progressive has introduced called MyRate, a “pay as you drive” system that is supposed to reward good drivers with up to 40% lower car insurance rates. A wireless device plugs directly in to your car’s on-board diagnostic port, thus allowing Progressive reps to monitor your driving habits, level of aggressiveness, when you drive and how far you drive. Your rates will be adjusted every six months based on your level of safety. Currently, this program is voluntary and only available in a handful of states.
In theory, this is a good idea. But unfortunately, we don’t live in theory. In reality, this idea will never fly. Sure, I would venture to say that a decent percentage of people—the most perfect of drivers—would join this program in a heartbeat. However, Progressive is also blatantly clear that rates could go up for “aggressive” drivers.
But what is Progressive’s definition of “aggressive?” Personally, I’m a typical New Jersey driver…fairly hostile, impatient, and in some instances, downright mad if other drivers push my buttons. On the other hand, I am generally courteous and follow (most) traffic laws. Knock on wood, I’ve never had any points on my license during my driving career. Lately I’ve even slowed my speed a bit to compensate for gas prices, and on some level, it seems to be saving me a few bucks a month.
If there’s a chance that my rates could go up while I’m struggling to pay for the rising cost of everything, I’ll pass. Incidentally, to remember the information I needed to write this editorial today, I was taking notes on an old envelope while driving in rush hour traffic. So am I a candidate for a MyRate wireless device? I think not.
