I’ve been with Erie for my auto insurance and have had no accidents or traffic violations. However, since switching to an electric vehicle, my premium jumped from $925 to over $1700 for two cars. I recently got a quote from Progressive Direct, and it came out to about $500 less annually for the same coverage (though I did exclude accident forgiveness and the deductible savings bank). Is it a risky move to switch from Erie to Progressive? The monthly payment option with Progressive actually saves me around $720 a year. Am I overlooking anything important?
Progressive Direct
Switching from Erie to Progressive could be a good decision, especially since you’ve found a considerable savings of about $500 per year with similar coverages. However, there are a few factors to consider before making the final decision:
Coverage Differences: Make sure to carefully compare the details of the coverage between the two policies. While the premiums may be lower with Progressive, check if the coverages are identical (e.g., liability limits, comprehensive and collision coverage, uninsured/underinsured motorist coverage, etc.). Sometimes lower premiums mean lower coverage limits or higher deductibles.
Accident Forgiveness and Deductible Savings Bank: While you mentioned not including accident forgiveness and the deductible savings bank in your Progressive quote, consider how those factors might benefit you in the future. If you have an accident and it’s not forgiven, your rates might increase significantly afterward, offsetting your savings.
Customer Service and Claims Experience: Research the reputation of both insurance companies, particularly in terms of customer service and claims handling. Sometimes, a slightly higher premium might be worth it if it means better service when you need it.
Renewal Rates: Look into the renewal rates for both companies. Some insurers offer lower rates for new customers that may increase significantly upon renewal.
Discounts and Additional Savings: Check if Progressive offers any additional discounts that you might qualify for, which could further reduce your premium.
Local Regulations: Insurance rates can be influenced by local regulations that might affect coverage options and pricing. Make sure to account for this depending on where you live.
Ultimately, if the coverage is adequate and you’re comfortable with the potential trade-offs, the switch to Progressive could be financially beneficial. Just take your time to review all aspects before finalizing your decision.