With more than 18 million policyholders, Progressive is a major player in the auto insurance industry and is widely recognized for its humorous spokesperson, Flo. Auto, home, business, and life insurance are just some of the options available from Progressive. Saving with Snapshot is just one example of how Progressive stands out from the crowd with its one-of-a-kind discounts.
Progressive Auto Insurance
Average annual premium: $2,036
Market share: 13%
Premiums written: $33.2 bn
J.D. Power Customer Satisfaction Score: 862
Company's Overview
The Mayfield Village, Ohio, headquarters of Progressive Insurance, dates back to 1937. This insurance provider serves customers in all 50 states and the District of Columbia and provides several options for auto insurance, including liability, comprehensive and collision coverage, and emergency road service.
Types of Coverage
Liability, comprehensive/collision, uninsured/underinsured motorist, and emergency road service are the four main coverage types provided by Progressive.
Liability Coverage
Most states mandate that drivers carry liability insurance to pay for other people’s repairs to their property or medical bills if they are injured in a car crash. Accidents involving property, vehicles, or other people, as well as injuries and legal costs, are covered.
Comprehensive and Collision Coverage
Uninsured and Underinsured Motorist
Accidents caused by drivers who do not have insurance or who have insufficient insurance are covered by uninsured/underinsured motorist coverage. Suppose you or a loved one are ever injured in an accident caused by a motorist who does not have liability insurance. In that case, uninsured motorist coverage will pay for your medical bills and other losses incurred. Underinsured motorist coverage will protect you if the other driver does not have enough insurance to cover your losses. Many states have laws that make it mandatory for residents to have both uninsured and underinsured motorist coverage.
Roadside Assistance
With Progressive’s Roadside Assistance, you’ll have access to a wide range of emergency services around the clock, giving you greater peace of mind on the road. The following are the services included in Agero’s roadside assistance plans, which frequently useinsurance companies frequently use:
- Transportation device towing: Pull to a spot no more than 15 miles away.
- Winching: Tows the insured’s vehicle within 100 feet of the nearest road or highway if it becomes stuck in a muddy, snowy, wet, or sandy area.
- Using a jump starter to recharge a dead battery: In case of a dead car battery, the insured vehicle is jump-started.
- To recharge the batteries of electric vehicles: offers complimentary transportation within a 15-mile radius to a gas station, garage, or other destination of your choosing.
- Chemical transfer of fuel: No additional fees for fuel delivery and maintenance (fuel charges apply)
- Key cutting and other locksmithing services: Includes assistance in the event of a misplaced, stolen, or locked set of keys.
- Repairing a flat tire: Free tire replacement in case of puncture (spare tire charges apply)
- On-site work: Guarantees up to 60 minutes of work even if the engine is dead.
Varieties of Insurance Coverage
The following additional insurance policies are available from Progressive:
- Medical payments: insurance that, no matter who was at fault, covers medical and funeral costs for passengers and their families
- Settling a Loan or Lease: pays the difference between the remaining balance on your loan or lease and the current value of your car (up to 25% of the car’s cash value) (also known as gap insurance)
- Getting your money back from the rental agency: When an insured accident occurs, the insurance company will pay for a rental car up to the policy’s daily limit (usually $40-$60).
- Value protection for specialized tools and machinery: Modifications to the car’s exterior, such as new wheels, paint, or an upgraded stereo or GPS, may be included.
- Aspects of Ridesharing: Covers you while working for a ridesharing service.
Discounts
There are thirteen different discounts available to Progressive policyholders. Multi-policy deals, multi-vehicle discounts, safe driver discounts, and good student discounts are some of the most common. Please note that discounts may not apply to residents of some states (such as California).
Loyalty-Based Auto Discounts
- Multi-policy: On average, you can save 5% by purchasing multiple policies from Progressive. To cut costs, consider bundling your auto and homeowners or renters insurance, or purchasing multiple separate auto policies.
- Multi-car: You can save an average of 4 percent on your Progressive auto insurance premiums if you insure multiple vehicles with the company.
- Continuous insurance: When a policyholder switches to Progressive from another insurer, they may be eligible for a discount based on the length of time the policyholder was previously insured with the previous company. A potential applicant may be disqualified if they have a gap in coverage lasting longer than a month.
Driver-Based Auto Discounts
- Safe driver discount: Safer drivers can save more money with Progressive’s Snapshot program.
- Teen driver discount: Teenagers under the age of 18 who are covered by the policy qualify for this discount; adding a child to an existing policy is already more cost-effective than purchasing a new policy just for them. This teen driver’s coverage will extend to all of the vehicles covered by the policy.
- Good student discount: An average 10% discount is available to full-time students who keep a B average or higher.
- Distant student discount: Available to a full-time student age 22 or younger who resides more than 100 miles from home and does not have a vehicle on campus (average discount varies).
- Homeowner discount: Even if a homeowner’s primary residence is not covered by Progressive’s policies, they may still qualify for a discount on their auto insurance (typically 10%) by providing proof that they are a homeowner.
Quote and Buy Discounts
- Online quote: Candidates who receive a quote online (even if finalized over the phone) will be considered.
- Sign online: Online policy signing provides savings for applicants.
- Paperless: All accounts are eligible for discounts if the applicant chooses to receive paperwork electronically rather than via regular mail.
- Pay in full: Those who apply and pay in full up front will get a discount.
- Automatic payment: Discounts are given to those who choose to pay automatically.
Payment Options
- Automatic payment discounts are available for payments made via preauthorized or automatic withdrawal from a bank account, credit card, or debit card.
- There is a price reduction for paying the total amount due at once.
- Contact via telephone (1-800-776-4737)
- A text message
- Standard mail
- An online account
- Because of their age, teenage drivers incur significantly higher premiums compared to their adult counterparts. Generally, interest rates level off between the ages of roughly 25 and 75.
- Cost of Insurance Policy Increases with High Mileage Driven:
- Tickets for speeding or other traffic offenses will increase insurance costs.
- A single accident, regardless of who was at fault, can raise premiums significantly.
- In general, insurance costs less in rural areas than they do in densely populated urban areas.
- The cost of a policy will increase proportionally with the amount of coverage you purchase.
- Payment method: savings will change depending on your chosen method of payment.
- Cost per mile driven: more expensive for frequent drivers.
- A person’s ability to pay back loans is measured by their credit score.
- The likelihood of receiving a lower rate is higher for those who have never gone without coverage.
- Insurers may charge more for vehicles with V8 engines or more.
Pros & Cons
Pros
- Policy discounts that span the spectrum
- Low levels of customer dissatisfaction
- Constantly accessible customer service
Cons
The method of purchase may affect the final price.
In contrast, ratings from competitors’ customers are consistently higher.
The costs of insurance policies are sometimes disproportionate to their benefits.
Pros Clarified
- Policy discounts that span the spectrum: There are a total of thirteen different discounts available from Progressive, ranging from those based on loyalty to those based on the driver themselves.
- Low levels of customer dissatisfaction: The National Association of Insurance Commissioners (NAIC) gave Progressive a 2.27 complaint score in 2021, higher than the industry standard of a 1.0 complaint score.
- Constantly accessible customer service: Progressive provides service to its customers around the clock, every day of the year.
Cons Clarified
The purchase method may affect the final price: Policies with identical coverage may cost more or less depending on the customer’s preferred purchase method due to factors such as online discounting and other expenses.
In contrast, ratings from competitors’ customers are consistently higher: Progressive auto insurance rates may be higher than those of some of its rivals in some areas.
The costs of insurance policies are sometimes disproportionate to their benefits: Although Progressive was ranked in the top three insurance providers nationwide by J.D. Power’s 2021 U.S. Auto Insurance Study, this was the case in only one region: Texas.
Customer Service
Email, live chat, and a toll-free number (1-888) 671-4405 are all ways to get in touch with Progressive’s helpful customer service team. Progressive’s website features an email address for customers if they have questions about filing a claim, the claims process, roadside assistance, or fraud/identity theft.
Customer Satisfaction
Reviews and ratings from Progressive’s customers are mixed. According to data from the National Association of Insurance Commissioners (NAIC), consumer complaints about Progressive are above average. In addition, policyholders rated it highly in J.D. Power and Associates 2017 U.S. Auto Insurance Satisfaction Study. Consumer Affairs reports that out of 1,841 total ratings, customers give Progressive Auto Insurance a 3.9-star rating on average. On Trustpilot, however, customers gave the company a dismal 1.3 stars on average after reviewing their experiences with them.
Satisfaction Ratings
Complaint Index
Is Progressive Auto Insurance A Worth Insurance to Get?
Many drivers may benefit from purchasing a Progressive auto insurance policy. Progressive Insurance has a wide variety of auto insurance plans and optional coverage riders, but customer feedback is mixed.
For safe drivers, Progressive’s full coverage rates are on average about 7 percent less than the national average. Many different types of drivers can find something they like in the company’s offerings, which include usage-based insurance and rideshare insurance. Some of Progressive’s unique selling points are as follows:
- Discounted prices for high-risk drivers: In-depth analysis of the market revealed that Progressive has, on average, some of the lowest premium costs for high-risk drivers like those who have recently been convicted of drunk driving, received a traffic ticket, or been involved in an accident.
- Snapshot® Software: The Progressive app monitors your driving habits to determine how safely you typically operate your vehicle. You could get a price cut based on your record of traffic safety.
- Opportunities to save money: Discounts such as multi-policy and teen driver discounts are available to Progressive customers.
In addition to liability, comprehensive, collision, and uninsured/underinsured motorist coverages, Progressive provides a wide range of options for auto insurance. Customers looking to reduce their monthly premium payments will find it a good choice, thanks to the variety of discounts available across policies. However, a policy’s cost may be higher than that of competing products, depending on the method used to obtain and apply for quotes.
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Source: Investopedia