Progressive vs. Geico
I have a 2024 Tacoma and a 2022 Mazda 3 for my wife and me. Currently, I’m insured with Geico, paying $1,686 for six months. I recently used the online calculator for Progressive and found a rate of just $890 for the same coverage. How is there such a huge difference in cost?
The Most Expensive Car Insurance Premiums: What’s the Highest You’ve Encountered? Car insurance can vary widely depending on several factors,…
Why Is Progressive So Affordable? Exploring the Ins and Outs of Auto Insurance Pricing If you’ve ever shopped around for…
Incentive Structure: Should We Factor in Loss Target Ratio? We’d love to hear about your experiences with sales incentive structures.…
It’s definitely surprising when you see such a significant difference in rates between two insurance providers, especially when coverage seems comparable. There are a few reasons why Progressive might be quoting much less than Geico:
Discounts: Progressive may offer discounts that you’re not receiving with Geico, such as multi-policy discounts, safe driver discounts, or loyalty discounts. Make sure to check if you qualify for any discounts with Progressive.
Pricing Models: Insurance companies use different algorithms and data points to assess risk and set rates. Progressive may have more favorable underwriting criteria for your specific circumstances, such as your driving history, location, or the type of vehicles you own.
Market Competition: Insurers frequently adjust their rates to remain competitive. It’s possible that Progressive is actively trying to attract new customers and is offering lower rates as part of that strategy.
Claims History: The overall claims history and loss ratio for certain demographics or types of vehicles can influence rates. If Progressive has lower claims costs in your area or for your vehicles, they may pass those savings on to customers.
Payment Plans: Consider whether the way you pay (monthly vs. bi-annually) affects your rate with one provider versus the other.
It’s always a good idea to shop around for rates and to review your coverage to ensure you’re getting the best deal for your needs. If you decide to switch to Progressive, make sure you fully understand the coverage terms and any potential gaps compared to what you currently have with Geico.