You cannot really name your own price for car insurance at Progressive Insurance. It is just a way to advertise to get people to buy the company’s insurance product.

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The article below explains how the “name your own price” or Progressive “MyRate” plan works and why it does not actually save you money.

How does the “MyRate” tool work?

The way Progressive works is that you must first apply for coverage. Upon applying for coverage, you will receive a quote.

If you decide to purchase insurance from Progressive, you are then given the option of signing up for the “MyRate” tool. If you sign up for the tool, Progressive will give you a 10% discount on your first term premium. Then, you are charged $30 for every term to cover the measuring device that is placed in your vehicle.

The device will provide a reading of how, how much, and when you actually drive. According to Progressive, the device can save you up to 25% on your policy or cost you up to 9% more depending on driving habits and patterns. If you do some research, you’ll find proof on the Internet that MyRate from Progressive is saving people on their auto insurance.

Is the “MyRate” program available in all states?

The “MyRate” program is only available in certain states, according to Progressive. This is most likely due to the fact that every state’s insurance requirements and minimum rates vary. Insurance companies can only discount certain amounts to meet insurance regulations.

Insurance companies are required to charge a certain minimum rate for insurance. This is because insurance companies must keep enough reserves on hand in case of catastrophic payouts. If they charge too little, the reserves will not grow or will become depleted.

This means that in certain states there is less leverage to adjust rates.

Another factor in why the tool is only available in certain states is that insurance discounts must first be approved by the state’s insurance department before the company can market it to potential policyholders. Progressive is currently working on receiving approval from other states’ insurance departments, so they can market the “MyRate” tool in these additional markets.

How is the “MyRate” program any different from any other discount?

The “MyRate” program is not really any different than any other discount offered by an insurance company. For instance, most insurance companies will give you a discount if you drive less than the national average.

Most insurance companies will also give you a discount on how you drive. See, if you have a clean driving record then your driving habits are probably pretty good. You can get a lower premium for being a good driver with almost any insurance company.

Lastly, many insurance companies will give you a lower premium if you drive at off times. If you do not drive in rush hour every day for miles to the office, there is a pretty good chance your insurance will be lower than someone who does.

Can I name my own price without the “MyRate” device?

According to Consumer Reports, you can also name your own price without the “MyRate” tool. Progressive allows you to name your own price by entering an amount in a tool box after the quote has been generated. However, the website will not allow you to go below a certain level, which is probably due to industry regulations.

Also, as your amount is adjusted, so is your coverage. Your price will get lower as the insurance coverage decreases or as your deductible increases.

Can I name my own price with another company?

You can most definitely name your own price with any insurance company but with certain restrictions. Again, insurance companies are regulated by how much or how little they can charge.

You can lower your premiums by adjusting your coverage. A few adjustments to coverage can save you hundreds of dollars. You should also ask for or research possible discounts for car safety features, driver’s education courses, good student discounts, marital status, or bundling of coverage.

Essentially, when you make these adjustments, you are naming your own price in the insurance industry. After all, you are determining the minimum required coverage for the lowest amount of money.

Remember you should always receive at least three quotes when shopping for car insurance. Do not let cost be the deciding factor. You should always compare cost with coverage and be sure you purchase insurance from a reputable company.

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