New New Jersey Personal Auto contract changes beginning May 19, 2016

On May 19, 2016, we'll initiate some contract changes around our New Jersey Personal Auto product. These changes not only bring us into alignment with current industry trends, but will also allow us to lead the industry with certain coverages.

The changes described below will impact both new business and renewal business for all Progressive Personal Auto policyholders in New Jersey. New business customers with policies written on or after May 19, 2016, will receive the new policy contract.

For renewal customers, the notice will go out with their renewal documents and their new policy contract starting on May 19, 2016. Changes won't go into effect until their renewal effective date. This will provide you around 40 days before changes would apply to any current customers. Because this won't affect all customers at the same time, this process may take up to twelve months to cycle through your current customer base.

Lienholders: By aligning the rights of lienholders and insureds, we'll bring our coverage back in line with the majority of our competitors. Previously, we afforded lienholders greater rights than the rights of an insured. The Loss Payable clause has changed so it doesn't protect the lienholder's interest when coverage is not available to the insured for the loss.

Roadside usage cap: We're capping an insured vehicle to three roadside uses per six months per vehicle. If a customer does have a fourth roadside request within their six month window, we'll provide the customer the assistance they require, however, they will need to pay for this service out-of-pocket.

Unrelated rated driver: We're expanding this coverage. Any unrelated rated driver residing in the insured's household, and listed on the policy, will be covered while operating non-owned vehicles in the same way resident relatives are covered. This means, a roommate or domestic partner, when listed on the policy and who drive the vehicle, is now covered for non-owned vehicles and as a pedestrian, in the same way the named insured, and relatives are covered.

As the ride-sharing industry grows, changes to this model include definitions and exclusions to clearly provide that no aspects of ride-sharing or vehicle sharing are covered under our Personal Auto policy. If you have a customer requiring this type of coverage, our Commercial Auto For-Hire Livery program does cover these risks. We define these types of risks as:

Personal vehicle sharing program: means a system or process, operated by a business, organization, network, group, or individual, that facilitates the sharing of private passenger motor vehicles for use by individuals, businesses, or other entities.

For personal vehicle sharing, while our insureds' covered personal autos are not covered while being used by others through a vehicle sharing arrangement, our insureds are still covered when they're using non-owned vehicles, including ones obtained through vehicle sharing arrangements.

Ride-sharing activity: means the use of any vehicle to provide transportation of persons or property in connection with a transportation network company from the time a user logs on to, or signs in to, any online-enabled application, software, website or system until the time the user logs out of, or signs off of, any such online-enabled application, software, website or system, whether or not the user has accepted any passenger(s) or delivery assignment, including the time the user is on the way to pick up any passenger(s) or property, or is transporting any passenger(s) or property.

For ride-sharing situations, our insureds aren't covered when they're driving for Uber, Lyft or companies of the like. But, if they're a ride-sharing passenger they still may be able to receive the benefit of uninsured motorists and medical payments coverages, as they would while occupying any non-owned vehicle.

Transportation network company: means a corporation, partnership, sole proprietorship, or other entity that uses any online-enabled application, software, website or system to connect drivers with clients or passengers to facilitate and/or provide transportation or delivery services for compensation or a fee.

Remind your customers to inform us when they have any changes such as moving or a new resident moving into their household that may drive their vehicles. By keeping us up-to-date, we can ensure they are paying an accurate rate and have the proper coverages and services available to them.

To help you message to your customers, we're providing messaging talking points as well as a letter template you can send to your customers.

If you have any questions, please contact your account sales representative.

Thank you for choosing to sell Progressive.