I’m a 21-year-old male with a single policy through Progressive, covering a brand new Cadillac, and my monthly premium is just $99. I find this rate astonishing, especially considering I’m insuring a $50k+ vehicle on my own. I do have to use the Snapshot device from Progressive (which I really dislike), but I’ve been informed that my policy is surprisingly half the cost compared to other providers. My driving record is clean, so I’m curious why my premium is so low. I have average deductibles and even had a third-party review my account, and they confirmed that my coverage is right where it should be.
21 yr old, single policy, insuring a brand new Cadillac paying $99 a month w/ progressive
It sounds like you’ve managed to secure a really competitive rate considering your age and the type of vehicle you’re insuring! Here are a few reasons why your policy might be lower than expected:
Discounts: Progressive often offers various discounts that can significantly lower rates, such as for safe driving, bundling with other policies, or even a good student discount if you’re in school.
Usage-Based Insurance: Since you mentioned the Snapshot program, it’s possible that your safe driving habits are being rewarded through this program. If you’re driving less or have good driving behavior, this can lead to lower premiums.
Market Variations: Insurance rates can vary widely between companies, and some insurers like Progressive might have better algorithms or data that reflect more accurate risk assessments for certain profiles, especially for new cars.
Credit Score: If your credit score is good, insurance companies often factor this into their rates, which can lead to lower premiums.
Low Risk Factor: Since you have a clean driving record and are less likely to file a claim, insurers might consider you a lower risk, resulting in lower rates.
Economies of Scale: Progressive is one of the larger insurers and might have more flexibility in pricing compared to smaller companies.
Overall, it sounds like you’re getting a good deal! Just make sure to keep reviewing your coverage and shop around periodically to ensure you’re still getting the best rate.