Progressive Insurance is apparently seeing some progress with an array of mileage-based policy pricing programs.

A test-offering that involves drivers’ recording and reporting their odometer readings is seemingly gaining traction as it has been extended to four states: Iowa, Virginia, Arizona and Florida.

The company reports having research supporting the stance “that there is a correlation between the number of miles customers drive and the likelihood of being involved in a crash — if you drive less, your chances of being involved in an accident are lower. By collecting exact odometer readings, this information, when combined with other information used to price car insurance policies, could help advance the science of insurance pricing making rates even more accurate and tailored to individual drivers.”

“We’re always looking for ways to more accurately price auto insurance and this program is just another way to do this,” according to Shannon Kelly, Progressive’s Arizona product manager.

“Virginia and Iowa drivers were able to save an average of 7 percent on their total premium, so we’re excited to expand the program and offer Arizona drivers a way to save, too,” she says.

“This pilot is a win-win. Arizona drivers can reduce their insurance costs simply by participating and, if they drive less over time, can save even more. And, we get to collect mileage data, which will help us better understand the correlation between how much a person drives and how likely they are to get into an accident.”

Policyholders get a 5 percent “participation discount” on each covered vehicle’s premium simply for signing up; this discount is applied to the renewal policies as long as they continue to report their odometer readings. They may also receive an additional mileage discount of up to 10 percent, depending upon the number of miles driven, which will be applied to the next policy term’s fee. In all, customers could receive as much as 15 percent off each vehicle’s premium for a six-month policy. With the average Arizona driver paying about $1,000 annually for auto insurance, it amounts to a potential savings of about $150 a year.

The voluntary customers log in to a password-protected Internet site and enter the current odometer reading for each enrolled vehicle. They report odometer readings when buying a policy and again at each renewal of the policy, or once every six months. The clients retain the option of signing up all or just some of the vehicles on their policy.

This type of arrangement could be an innovative match-up for the numerous low-mileage motorists enjoying retirement in the Sunshine State. “Florida drivers can reduce their insurance costs simply by participating and, if they drive less over time, can save even more,” notes Ron Davies, the product manager there.

Progressive also is currently piloting a usage-based program in Minnesota called TripSense, in which driving data is voluntarily collected by a small “TripSensor” device that records information about how often, how fast and when a vehicle is driven, along with acceleration and braking data.

(In addition, a nationwide driving habits research study is under way that uses the same technology to gather the driving information; customers are reimbursed $50 for voluntarily sharing six months of data from each car in the program.)

Drivers joining the Minnesota pilot program receive a free TripSensor — a  matchbox-sized unit that plugs into a vehicle’s On-Board Diagnostic (OBDII) port.

Once installed, TripSensor records how much, how fast and when the vehicle is driven. This information is used to calculate the discount the customer may receive when renewing the policy.

TripSensor also collects information about rapid acceleration and braking that is not currently used to calculate the discount. Progressive is collecting this data to better understand if it is predictive of future accidents.

Toward the end of each policy period, customers use software provided by Progressive to download their driving data to a personal computer where they can view it to better understand the discounts they have earned and to upload the data to the company. During the pilot, all new customers get a 5 percent discount on the current policy. In subsequent policy periods, they receive a 5 percent discount when they share their driving information with Progressive. Participants may also be eligible for a “usage discount” of up to 15 percent based on how much and when the vehicle was driven. And, an additional 5 percent can be added to or subtracted from the usage discount depending upon what percent of time the vehicle was driven slower than 75 mph.

“This discount program can help drivers save money and help them to better understand how car insurance works,” says Jim Haas, the Minnesota product manager. “Pricing car insurance accurately depends upon understanding risk. Drivers who reduce their risk of being involved in an accident by driving less, driving during lower risk hours or driving slower will be rewarded in this discount program.”

This pilot, which started in 2004, is among several usage-based pilot programs pitched by Progressive. The company was the first to test a procedure that retrofitted Global Positioning System (GPS) and cellular technology into customers’ vehicles to calculate the premium based in part on how much, when and where the vehicle was driven.

This test, conducted in Texas, started in 1998 and concluded in 2001. “While the Texas test proved customers liked usage-based insurance because it saved them money and gave them more control over the cost of their auto insurance, it was discontinued due to high costs and complex installation logistics,” according to the company.

In July, Progressive officially introduced its “Total Loss Concierge” service, which will help a motorist find a replacement car regardless of the age of a totaled vehicle — even if you want a used car.

An estimated 5 million vehicles, or about 20 percent of those involved in insurance claims each year, are totaled in crashes —a 40 percent increase over the past seven years.

“We designed our Total Loss Concierge program to help the people who need it the most,” says Paul Lamison, the program’s manager, “that is, people whose cars may be a few years old and who may want help finding replacement cars and financing. Because new cars have a higher dollar value, it’s very unlikely that following a crash they’ll cost more to fix than they’re worth, so a service that only replaces newer cars doesn’t help a lot of drivers,” he observes.

Typically if your car is declared a total loss, the insurance company writes a check for your car’s actual cash value, minus the deductible amount you selected when purchasing the policy. In exchange, you sign over the car’s title. “After that, you’re on your own; you have a check, but you don’t have a car,” he explains.

The result is facing the inconvenience of unexpectedly having to shop for another car. And second, if a driver is “upside-down” on the auto loan (meaning you owe more to the finance company than your car is worth), you may end up paying money on a vehicle you no longer own.

“Because of the resources we’ve put together, there’s a good chance we’ll get you a better deal on both the purchase price and the financing than you’d get shopping on your own,” says Lamison.

“Progressive’s network of lenders can even help you arrange financing if you need it. All you have to do is describe the vehicle you’re looking for — you can even specify the year, make, model, price range and color — and your concierge specialist will take it from there,” he adds.

The company says it has arrangements with a large network of selected car dealerships and lenders to help find the proper product and pricing terms.

Total Loss Concierge is free and available in selected states to all Progressive Directand Drive Insurance customers along with anyone involved in a claim with a policyholder.

According to a recent countrywide survey by Progressive, the majority of people whose cars are totaled spend at least five full days trying to find a replacement car and arrange financing.

“With Total Loss Concierge, we do the leg work for you so you can spend your time the way you want to,” says Lamison. “And you get the car you want at the price you want to pay, fast.”

In 2003, Progressive introduced a concierge level of service for repairable vehicles available through its now-more than 40 Service Centers. Customers using a Service Center drop off their damaged cars and, in about 15 minutes, can be on their way in a rental car assured that a claims representative will handle the repair process from beginning to end. The company says the process saves people time because they avoid driving around to different body shops getting repair estimates, arranging for alternate transportation and keeping tabs on the repair process. More than 50 Service Centers are to be operating nationwide by the end of 2006.