Progressive Car Insurance: How They Compare with Other Companies
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Progressive car insurance, which began in 1937, is ranked on the Fortune 500 with 14.7 billion in assets. The company insures 11 million drivers and ranks as one of the largest auto insurance companies in the United States. It ranks prominently with State Farm, Allstate, GEICO, Farmers Insurance Group and USAA. The company is the largest online or Internet based seller of auto insurance.
Price Comparison
One of the competitive features of Progressive auto insurance is their ability to compare prices between different insurance companies in order to show the amount of savings from purchasing a Progressive policy. The pricing of Progressive policies are on par with other insurance companies and somewhat less than State Farm, Allstate, Farmers and USAA. It should be noted that GEICO insurance quotes can only be provided by a licensed or affiliated GEICO agent so there is no way to know if Progressive quotes are on par with GEICO.
Progressive Auto Insurance Rating
Progressive Auto is rated A+ superior by A.M. Best Company, an insurance rating company. This puts Progressive among the best auto insurance companies in terms of financial stability and claims paying ability. It ranks higher than its competitors and is on par with the ratings for the Traveler’s Insurance Company.
Progressive Auto Customer Satisfaction
According to the J.D. Power’s 2009 auto insurance customer satisfaction ratings, Progressive ranks in the middle of the pack as compared to other auto insurance companies. Of the 7 rating factors measured by the company, Progressive received the following marks (based on a 5 point scale):
Overall Satisfaction, 3
First Notice of Loss, 3
Service Interaction, 3
Appraisal, 3
Repair Process, 2
Rental Car Experience, 5
Settlement, 3
GEICO, GMAC and USAA received higher customer satisfaction ratings based on the 7 point criteria. It should be noted that USAA is only available to military families and their dependents so the customer pool is more limited than that of other auto insurance companies.
Controversies Concerning Progressive’s Rates
There are some questions and controversies concerning the comparative data used by Progressive and whether the price quotes given truly represent a fair apples-to-apples comparison. Some companies whose information is used by Progressive for quotes is outdated or does not reflect the impact of certain discounts and incentives that are given based on a driver’s record, participation in a defensive driver’s course or use of an auto theft device. Using a third-party pricing service or website shows that in some instances, Progressive’s rates are not the lowest or best available.
As an auto insurance company, Progressive is good for most drivers and offers rates that are as competitive as others in the market. The company enjoys high financial ratings and moderate to high customer satisfaction marks. It is in the same league as other large auto insurers.
