Progressive Insurance recently announced that it has settled its dispute with Allstate over its usage-based insurance service

Progressive’s Snapshot program uses a small device in your car to monitor how much you drive. The insurer uses this information in order to discount certain drivers who keep usage at a minimum.

But when Allstate unveiled a similar program, Progressive filed a patent infringement suit against the insurance company, a suit that was apparently settled last week.

On Oct. 3, Progressive announced that an agreement was reached, which includes a license for usage-based insurance issued by Progressive for Allstate. Both will offer the policies to drivers.

"This was about protecting and leveraging Progressive's investment of more than 15 years in usage-based insurance research, development, testing and piloting," said Chuck Jarrett, Progressive's chief legal officer in a company press release. "We have always said we are willing to license our intellectual property rights to others and that we will enforce those rights when necessary."