Progressive Auto Insurance Review

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Progressive Auto Insurance Review

Progressive Auto Insurance Review

Key takeaways:

  • Progressive is one of the lowest-cost car insurance providers in most states.
  • They offer rideshare coverage for gig workers.
  • Progressive features an easy, online, obligation-free quote system that’s not common among the major car insurance providers.
  • The company provides one of the most extensive lists of discounts, which may get you the lowest premium available.
  • The Name-Your-Price tool lets you build a policy around the premium you can afford to pay.

Thanks to its Progressive advertising campaign, Progressive is one of the best-known — and most popular — car insurance companies. But there are plenty of reasons to choose Progressive beyond slick commercials. They became one of the largest car insurance companies in America thanks to a combination of generous discounts, customer-friendly coverage options, and some of the lowest premiums in the industry.

After reading this review, you’ll see why Progressive needs to be on your short list of choices for your next car insurance policy.

About the Company

Progressive is the third largest auto insurance provider, based on direct premiums written, with 13.3% of all auto insurance in force in the U.S., trailing only State Farm and Geico. The company has more than 18 million customers nationwide, with over $33 billion in direct premiums written.

It’s easy to see why. The company is one of the lowest-cost providers in most states, largely as a result of the many discounts they provide. They also offer important niche products, like rideshare coverage, which reflect the changing needs of their customer base.

Progressive’s primary product is auto insurance, though it does offer home insurance and various other insurance and non-insurance related services. In this review, we’re going to focus on Progressive car insurance, and also spend some time on their home insurance offerings.

Progressive Products & Services

Though Progressive is best known for car insurance — their main product — they also offer other services. The most prominent among these is home insurance, but they also have a wide range of other products and services.

Though this review will focus primarily on Progressive car insurance, we’ll also touch on home insurance below, since it’s relevant to the bundling discount the company offers.

We’ll only briefly mention other products and services offered.

Progressive Car Insurance

Progressive is one of the cheapest providers in most states, providing the lowest premiums in about 10 states.

Basic features of Progressive car insurance are as follows:

  • Availability: All 50 states, plus the District of Columbia
  • Covered vehicles: Autos, classic cars, motorcycles, Segways, snowmobiles, boats, recreational vehicles, ATVs/UTVs, and golf carts
  • Customer support: 24/7 by phone
  • Claims satisfaction: According to the JD Power 2020 US Auto Claims Satisfaction Study (released in October 2020), Progressive ranks #21 out of 24 companies providing car insurance nationwide. They score 856 out of a potential 1,000 points, which is below the industry average of 872.
  • Financial strength rating: A+ (Superior)
  • Better Business Bureau ranking: A+ (on a scale of A+ to F)

How to Sign Up with Progressive Car Insurance

The application process can be completed entirely online, although it can also be done by phone.

One of the features of the Progressive application process we really appreciated is the ability to get quotes online. By entering basic information, we were able to get quotes for various driver profiles without needing to enter sensitive information such as a Social Security number or phone number.

This is an important feature because some car insurance companies just ask for basic information, but then only provide quotes by contacting you, either by phone or by email. The Progressive experience enables you to shop for a policy without incurring sales pressure or repeated contact you may not want.

Unique Features

Though it’s common for consumers to shop for the car insurance provider with the lowest premium, there are several features that make Progressive stand out from the competition:

  • Large number of discounts. Progressive offers one of the widest ranges of discounts in the auto insurance industry and advertises an average savings of $700 per year.
  • Name Your Price Tool. You can build a policy based on the amount of premium you can afford to pay. That’s an excellent perk for anyone with a tight budget.
  • Large and Small Accident Forgiveness. Premiums won’t increase for claims under $500. Further, if you’ve been accident- and violation-free for at least three years and have been a Progressive customer for at least five years, your rate won’t increase after a large accident. This is one of the most flexible accident forgiveness programs in the industry.
  • Rideshare Coverage. This is an important add-on, with so many people now working in the gig economy. 

Progressive Auto Insurance Coverage Options

Progressive offers standard auto insurance coverage provisions, including liability, comprehensive and collision, uninsured/underinsured motorist, and medical payments.

Optional coverage provisions include the following:

  • Loan/lease payoff (GAP). To pay off the difference between the value of the vehicle and the amount owed, up to 25% of the actual cash value.
  • Rental car reimbursement. Receive reimbursement for a rental car while your vehicle is in the shop being repaired.
  • Custom parts and equipment value. Covers up to $5,000 in components added after the vehicle was manufactured.
  • Rideshare coverage. Provides coverage when you’re logged into your ridesharing app and waiting for a trip request or customer. Note that this option is not available in all states.
  • Roadside assistance. Includes towing services, lockout service, flat tire change, fuel/fluid delivery, and related issues.
  • Deductible Savings Bank. Subtracts $50 from your comprehensive and collision deductible for each policy period without an accident or a violation. A $500 deductible can be reduced to zero after five years (ten policy periods of six months each).

Progressive Discounts

Progressive offers one of the most extensive lists of discounts in the auto insurance industry.

Below is a list of the discounts they offer, and the average premium savings you can expect:

  • Bundle with home insurance: 5%
  • Multi-policy: 5%
  • Multi-car: 4%
  • Continuous insurance (even when you first switch to Progressive): Varies
  • Snapshot (safe driver monitoring): $146 per year
  • Teen driver discount: Varies
  • Good student discount: 10%
  • Distant student discount: Varies
  • Homeowner discount: Nearly 10%
  • Online quote: 7%
  • Sign online: 9%
  • Paperless documents: Varies
  • Pay in full: Varies***
  • Automatic payment: Varies

With so many discounts, it’s easy to see why Progressive advertises average savings of $700 per year.

(***Based on our experience obtaining quotes for this review, the pay-in-full discount averages between 10% and 15% of the annual premium. We did not reflect this discount in the quotes we’ve presented.)

Sample Premiums

To provide reasonable estimates of Progressive car insurance premiums, the table below presents annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the Progressive website.

Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

The limits we’ve used in our table are as follows:

  1. 30/60/25 (the minimum coverage allowed in Texas)
  2. 50/100/50
  3. 100/300/100

In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.

We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77380), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.

For simplicity’s sake, each driver is single, rents their home and has a college degree.

Here are the results:

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
State Minimum – 30/60/25 – Liability Only $552 $522 $370 $364
With Un/Under-insured Motorist and Collision & Comprehensive $1,356 $1,226 $838 $838
50/100/50 – Liability Only $588 $556 $400 $390
With Un/Under-insured Motorist and Collision & Comprehensive $1,432 $1,314 $970 $892
100/300/100 – Liability Only $654 $616 $436 $422
With Un/Under-insured Motorist and Collision & Comprehensive $1,548 $1,444 $1,012 $912
These are simplified quotes. For example, each driver’s credit history is not considered. Neither are certain optional coverages, like car replacement rental, roadside assistance, or GAP coverage for the payoff of a loan or lease.

Who Progressive Is Best For

There is no single car insurance company that is best for all drivers. But Progressive may be the right choice for you if any of the following apply:

  • Progressive is the lowest-cost provider in your state for your driver profile.
  • You participate in ridesharing activities.
  • You have a family with multiple drivers and vehicles that will qualify for several volume discounts.
  • You’re the type of consumer who is not fond of company solicitation, and you like the idea of the all-online quote system and application process.
  • You are over 40, where Progressive offers some of the lowest premiums in the industry, likely due to family volume discounts.

Progressive vs. Other Car Insurance Companies

The table below compares Progressive with three of the most popular auto insurance providers in the country: Geico, State Farm, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.

This is a high-altitude comparison only. Which company will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.

Category / Company Progressive Geico State Farm Allstate
Average Annual Premium: State Minimum $516 $464 $500 $756
Average Annual Premium: 50/100/50 with Collision & Comprehensive $1,106 $1,006 $1,190 $1,754
Average Annual Premium: 100/300/100 with Collision & Comprehensive $1,346 $1,222 $1,380 $2,140
J.D. Power Claims Satisfaction Rating 856/1,000 871/1,000 881/1,000 876/1,000
A.M. Best Financial Strength Rating A+ (Superior) A++ (Superior) A++ (Superior) A+ (Superior)
(SOURCE ON PREMIUMS: Average Cost of Car Insurance in 2021 from The Zebra)

What To Know About Auto Insurance

When shopping for car insurance, it’s common to make the lowest premium the most important consideration. But there’s a lot more to car insurance than premium.

  1. Make sure you are adequately covered — the liability limits in your policy should roughly match your net worth. State minimum coverage will be inadequate if your net worth is several hundred thousand dollars.
  2. Car insurance companies consider your credit score — the higher it is, the lower your premium.
  3. Don’t skimp on coverage options — optional provisions like GAP or uninsured/underinsured motorists are inexpensive compared to the benefit they provide.
  4. A large deductible can lower your premium — but it can put you in a financial bind if you won’t have the cash available to cover it.
  5. Ask each company about all discounts they have — not all are published, and there may be more that will apply to you.
  6. Shop, shop, shop — get quotes from at least three or four companies to evaluate coverage and cost.

Progressive Home Insurance

This is Progressive’s most significant secondary product line, as combining it with an auto insurance policy triggers the bundling discount.

Progressive’s home insurance isn’t a single product line, but several. They provide coverage, not only for owners of detached homes, but also condominiums and mobile homes. In addition, Progressive also provides renters insurance. Any of these policies will qualify for the bundling discount with a car insurance policy.

Unlike car insurance, Progressive isn’t the issuer of home insurance policies. Instead, your policy will be issued by a home insurance company that partners with Progressive. The company currently uses ASI as this home insurance partner.

Even though home insurance will be provided by outside carriers, the home and auto bundle will still apply.

Availability: Progressive home insurance is available in all 50 states and the District of Columbia.

Basic Home Insurance Coverage

Progressive home insurance policies provide the following basic coverage types:

Dwelling. Pays to repair or rebuild your home, condo, or mobile home, and other structures damaged or destroyed by natural disasters. Most hazards will be covered, but specific exclusions include floods, earthquakes, landslides, mudslides, and sinkholes. You’ll need a dedicated policy for each of these.

Temporary living expenses. Provides coverage for temporary living expenses while your home, condo, mobile home, or apartment is being repaired. This is sometimes known as “loss of use” coverage.

Liability. Much like the liability portion of a car insurance policy, this provision covers you if someone is injured on your property, or if you’re considered to be responsible for damage to their property. Think of it as the slip and fall portion of your policy. It can also cover you against other potential liabilities, like libel and slander.

Personal property. This portion of a policy covers the contents of your home. That includes furniture, electronics, appliances, exercise equipment, tools, and personal effects, among other possessions. If they are damaged or destroyed, this provision will provide reimbursement to enable you to replace those items.

The above provisions are covered in a standard home insurance policy. Optional provisions include:

Medical payments. Will pay if someone is injured in your home or on your property.

Water backup. This provision pertains to backups involving sump pumps and sewer systems. It will cover damage caused to your home and possessions from the backup. This is different from flood insurance, which results in water damage from natural events.

Personal injury. This goes beyond the standard liability provision because it covers uncommon, but expensive, lawsuits and situations. Examples include slander or libel lawsuits, lawsuits against you for wrongful entry or malicious prosecution, wrongful eviction, and false arrest, detention, or imprisonment.

Home Insurance Discounts

Progressive’s home insurance discounts are similar to those available for car insurance, and include:

  • Bundle home and auto – 5% average savings.
  • Safety and alarm discounts – includes burglar and fire alarms, automatic sprinklers, cameras, and security systems.
  • Quote in advance – at least 10 days before your policy starts.
  • New purchase – this means either purchasing a new home or converting from a current renters policy; the home does not have to be newly built.
  • Received documents by email
  • New home construction – the newer the home, the bigger the discount.
  • Pay in full – paying a 12-month policy up front.

When you bundle home and auto policies, you can set up a single deductible between the two. That means a single deductible will apply each year, whether the claim is for your home or your car. The single deductible feature is only available with certain home insurance companies Progressive works with.

You can also save money by using a contractor with an established relationship with the home insurance carrier. This may result in a lower price than you would pay if you selected your own contractor.

Progressive Home Insurance Ratings & Average Premium

Progressive does not score well when it comes to home insurance ratings, though it is one of the lower-cost providers.

  • Claims satisfaction: According to the JD Power 2021 US Property Claims Satisfaction Study, Progressive/ASI ranks #14 out of 20 companies providing home insurance nationwide. They score 879 out of the potential 1,000 points, which is below the industry average of 883.
  • Financial strength rating: A+ (Superior).
  • Average homeowner’s insurance premium: $1,740 per year (SOURCE: The Zebra)

How to Sign Up with Progressive Home Insurance

Just as with Progressive car insurance, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number to get more specific information.

Other Services Offered by Progressive

Though car and home insurance are Progressive’s main product lines, they also offer the following:

  • Business insurance
  • Business owner’s policy
  • Commercial auto insurance
  • General liability
  • Professional liability
  • Worker’s compensation
  • Health, dental, and vision insurance
  • Electronic device coverage
  • Life insurance
  • Pet insurance
  • ID theft insurance
  • Travel insurance
  • Umbrella insurance
  • Wedding and event insurance

If any of the above situations apply to you, you may want to discuss it with a Progressive representative when purchasing your auto insurance policy, or if you already have a policy in place.

The Bottom Line

Progressive is one of the largest auto insurance companies in the country, covering more than 13% of all drivers. Despite the below average customer service ratings the company receives, it’s obvious millions of consumers are choosing Progressive because of its advantages. The low premium structure in many states, as well as the large number of discounts, are major reasons why.

When shopping for car insurance, be sure to get quotes from several providers. Everyone’s situation is different, and you may find the best combination of coverage and low premium with a company not necessarily known for cheap rates.

But when you’re shopping for those quotes, Progressive should be one of the choices. They have what may be the easiest, obligation-free quote systems in the industry, one that you should take advantage of when looking for a policy.

Progressive FAQs

Is Progressive good car insurance?

Progressive rates a little below average on claims satisfaction, but it has a strong financial strength rating, indicating a solid ability to pay claims. In most states, it’s one of the two or three lowest-cost car insurance providers. They accomplish this by offering one of the widest selections of discounts available in the industry. They also offer important niche options, like rideshare coverage.

Is Progressive the cheapest insurance?

In most states, Progressive is one of the two or three lowest-cost auto insurance companies. But that’s not true in all states.

Why is Progressive insurance so cheap?

Progressive tends to be the one of the cheapest car insurance companies because it offers so many discounts. Meanwhile, the Name-Your-Price Tool enables drivers to select a premium level, then have a policy built around that rate. This makes it easier to get a low premium from Progressive.

The company also operates entirely online, which means its operating costs are lower than insurance companies that have networks of branch offices and a large number of agents.

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Source : https://www.goodfinancialcents.com/progressive-auto-insurance-review/