---

Progressive Lowers California Auto Insurance Rates

3 July 1998

Progressive Lowers California Auto Insurance Rates Third Time In Ten Months

        Average 13.7 Percent Rate Decrease is Good News for Consumers

    SACRAMENTO, Calif. July 3, -- Progressive, one of the largest
auto insurers in California is, on July 4, reducing its rates for the third
time in 10 months, Mark Niehaus, president, Progressive West Insurance
Company, announced.  Effective July 4th the company will take a rate reduction
of approximately 5.5 percent; the cumulative decrease (for all three rate
reductions) is an average of 13.7 percent statewide.
    "For California consumers, July 4th represents two 'Independence Days,'"
said Niehaus.  "One to celebrate our country's independence, the second to
celebrate independence from high auto insurance rates."
    The company's rate decreases since September of 1997 vary slightly across
the state. In San Diego/Orange County, the cumulative average rate decrease is
15.8 percent.  In Los Angeles, the cumulative average rate decrease is 17.5
percent and in Northern California/Sacramento, it's 10.1 percent.
    Niehaus said: "Lower auto insurance rates are good for everyone -- they're
good for consumers who can now pay less for the same coverage and they provide
a better product for our Independent Agents to sell.  We're able to lower
rates, in part, due to Proposition 213, authored by Commissioner Quackenbush.
Prop 213 eliminates pain and suffering lawsuits by uninsured motorists, which
has helped to reduce insurance companies' costs.  Lowered costs contribute to
an insurers' ability to lower premiums for consumers."
    Key to Progressive's rate reduction is its dedication to reducing
expenses.  One way the company controls its costs is by providing its
policyholders with fast, fair claims service, dubbed "Immediate Response(R)
claims service. Company claim representatives are ready to respond to
policyholder claims in person, 24 hours a day, 7 days a week.
    "Settling claims fast helps to get the customer's life back in order again
quickly," said Niehaus.  "It also helps to drive down our claims costs by
reducing the number of rental car and storage days as we get the
policyholder's car in to, and out of, the shop as quickly as possible. This
helps us reduce our overall costs."
    Previous to the introduction of Immediate Response in 1990, the company
measured claims response in terms of days.  Today, thanks to Immediate
Response, the company and its policyholders measure claims responsiveness in
terms of hours and minutes.
    In 1997, the company grew from the 14th largest auto insurer in California
to the 10th largest.
    Auto insurance policies from Progressive are perhaps the most widely
available in the industry. Consumers interested in becoming a Progressive
policyholder may contact one of Progressive's 1,800 California Independent
Agents, call 1 800 AUTO PRO(R) or visit the company's Web Site
(http://www.progressive.com).
    In business since 1937, Progressive provides consumers throughout the U.S.
and in Canada with competitively priced automobile insurance and 24 hour, in-
person services and is the nation's largest writer of automobile insurance
through Independent Agents.  Progressive West Insurance Company is rated A++
by A.M. Best, the independent company that rates the financial conditions of
insurance companies.  The Progressive Corporation's stock is
traded on the New York Stock Exchange.
    More information about the company can be found at its Web Site
(http://www.progressive.com).
    Progressive's California General Managers are available for interviews on
this and other auto insurance related subjects.  They are: Northern
California/Sacramento: Mark Niehaus, 916/864-6024; Los Angeles: Dave Pratt,
818/673-3003; and San Diego/Orange County, Juan Andrade: 619/542-6006.