Participants in the program receive a five percent discount on the six-month premium for each registered vehicle.

In subsequent policy periods, customers earn a five percent discount if they choose to upload their driving data to Progressive. Drivers also may be eligible for a "usage discount" of up to 15 percent, based on how much and when the vehicle was driven. An additional five percent can be added to or subtracted from the usage discount, depending upon the percentage of time the vehicle was driven slower than 75 miles per hour.

Sharing driving data is optional, the carriers said, but it is necessary to earn a discount on future policy terms.

"Progressive is committed to finding innovative ways to lower car insurance rates," said Jim Haas, Minnesota auto insurance product manager for Progressive in a statement. "This new program will give Minnesota drivers choice and control over the cost of their auto insurance."

Progressive tested this usage-based insurance discount program in Minnesota in early 2004. It offered 250 drivers $25 to plug a data logging device into their vehicles to collect information for 30 days, upload their data to Progressive and complete a survey about the experience. In that test, a discount on future policy periods was not offered. Had it been, the average member of the test group would have been eligible for a 7.5 percent discount on the registered vehicle in the next policy period.

More information about the program is available at tripsense.progressive.com.