Progressive’s Pay As You Drive (PAYD) Option Added to 16th State

Many drivers in Nevada are happy to learn that Progressive Insurance has added its Pay As You Drive (PAYD) option, MyRate, to their state. This is the 16th state to participate in the insurance provider’s new program, and drivers will now have an opportunity to save more on their auto insurance.

Pay as You Drive Basics

PAYD programs allow drivers to pay for their coverage based on the number of miles they’ve driven, rather than looking at zip codes, age, past driving record, and other components that can have varying affects on premium costs. This means, drivers will be judged based on their current driving habits, rather than their past.

Details

Different PAYD programs have employed different techniques to collect the miles each car has driven. Some of these have come under scrutiny because they are viewed as intrusive. While some companies choose to take odometer readings, others may go as far as using GPS systems to calculate miles. Progressive’s method of data collection points to telemetry devices, which are not too far off from the GPS concept.

All-in-all, programs like Progressive’s MyRate allow drivers to take a cheaper option for car insurance, especially if they don’t do a lot of driving. Since it’s an optional service, it’s up to the driver to decide whether privacy is enough of an issue to bypass the benefits of the program.

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