Progressive Insurance: Is It Legit or Scam How it works

Progressive Insurance: Is It Legit or Scam How it works

Insurance that evolves over the years

Progressive Insurance Company was the brainchild of Joseph Lewis and Jack Green and began operations in 1937 (March 10) as Progressive Mutual Insurance Company. The company’s goal was to ensure that vehicle owners benefit from safety and protection.

In 1956, the company became renowned for insuring the most at-risk drivers. The company passed the $20 billion mark in 2016 and has remained progressively innovative in the industry. In other words, the company lives up to its name. 

The company claims to be the first insurance company to have a website, allowing customers to purchase policies online. Fast forward to the present day, the company is among the pioneers in the use of mobile phone browsers and mobile apps for insurance policy management and pricing. They are the first to allow installment payments of premiums instead of annual payments. 

Progressive Insurance is also first in claims reporting hours.

The insurance company has continued to grow over the years to incorporate several other services. With gradual growth in the 1950s, the company opened new offices in downtown Cleveland.

With the death of co-founder Joseph Lewis in 1955, Green became CEO, while Peter Lewis, son of the late Joseph began a career with the company.

One of the company’s missions at the time was to find better ways to stand out from others in the industry. In 1956, the company established Progressive Casualty Company, which was responsible for underwriting automobile insurance for high-risk drivers. 

In the 1960s, the company underwent further expansion which gave birth to the Progressive Corporation in 1965.

In the same year, Perter Lewis rose to the position of CEO until 2000 (35-year term) when Glenn Renwick took over. 2016, Tricia Griffith became the new CEO after Renwick.

How Progressive Insurance Works

There are three operational sections in Progressive Insurance Company:

  • Personal lines
  • The commercial automobile
  • Other-allowance

The Personal line section

Under the personal line, the company provides coverage for passenger cars, recreational vehicles, boats, and motorcycles through a direct, independent agency channel.

The commercial automotive section

The Commercial Auto line offers primary liability and damage insurance for company-owned vehicles and trucks through an independent agency channel.

The Other Indemnities Section

The other indemnities section provides insurance coverage for directors and professional liability coverage for community banks and officers.

Progressive Insurance also provides insurance-related services with a primary focus on policy insurance and claims to adjust services for commercial auto insurance plans in 25 states.

In 2011, Fortune 500 listed the company at number 164.

Progressive Insurance Car Coverage

Progressive Insurance offers full coverage for cars.

Its services also cover state-approved auto insurance and other necessary insurance options. they also provide insurance coverage for other alternative options.

Progressive Insurance offers customers the option to select and create a plan or simply enter their budget and get an insurance plan tailored to their budget. Progressive insurance plans include:

Collision coverage

Under this plan, Progressive Insurance pays for the repair of the customer’s vehicle after a collision. Collision coverage also includes pet insurance.

Personal Injury Protection

Under the injury protection plan, Progressive Insurance pays the client’s medical bills after an injury and also reimburses the client for non-medical expenses, such as lost wages.

Responsibility

There are several policies covered by liability coverage like property damage and bodily injury. 

Not insured

There are many options available from Progressive Insurance for uninsured or underinsured motorists.

Other features and optional insurance coverages available from Progressive Insurance

There are several optional coverages and features available from Progressive Insurance that motorists can use to enhance their insurance policy. An example is the carpool insurance coverage Progressive provides in some states. Other optional insurances include:

Forgiveness in case of an accident

Under this coverage, accident claims under $500 will not affect the customer’s premiums. In addition, customers with more than five years of seniority and no accident record for three years do not have to worry about large claims.

Rental refund

Provides funds for car rental when an insured vehicle is being serviced.

Roadside Assistance

There is various roadside assistance available under this coverage such as car towing and roadside labor. Customers have the option to activate roadside assistance through the Progressive Insurance mobile app.

Gap coverage

For insured vehicles, which are used to cover a lease or loan, Progressive Insurance, under gap coverage, can pay up to 25% of the actual cash value of the car.

Other products available

Besides auto and motorist insurance, Progressive Insurance also offers other types of insurance products. They include homeowner and renter/tenant coverage, health insurance, and recreational vehicle insurance.

Customers can request these options as a package to help them save money and reduce rates.

home insurance

Home insurance includes loss of coverage, home insurance, liability insurance, and others.

Clients can also include coverage for other arrangements, medical insurance, and insurance for legal expenses (optional).    

Tenant/tenant insurance

Renter’s insurance includes liability coverage, personal property protection, and loss of use coverage.

The upgraded version of the insurance policy includes bodily injury coverage for a small additional fee.

Life insurance

Progressive Insurance also underwrites a life insurance policy that provides the client’s loved one with a death benefit.

Classic car insurance policy

The classic car insurance policy covers exotic cars, classic cars, and sports cars worth more than one hundred and fifty thousand dollars.

Recreational vehicle (RV) insurance

RV insurance covers different types of recreational vehicles like Segways, golf carts, RVs, trailers, snowmobiles, etc.

Progressive insurance reductions

One thing Progressive Insurance is known for is offering different types of discounts to its customers. There are several special discounts available that can help lower your premiums.

A good example is the Snapshots program. The program is designed to track driver behavior for six months.

Safe drivers benefit from special discounts. Other types of discount programs available from Progressive Insurance are:

Good student discount

Middle and high school students who get good grades can get a discount on their next insurance.

Multi-vehicle

Insuring two or more vehicles at the same time with progressive can earn you up to 12% off.

Automatic payment

Progressive Insurance also rewards its repeat customers with discounts when they activate AutoPay on their insurance.

Progressive auto insurance reviews

According to Progressive Auto Insurance Reviews, the customer satisfaction rating is average.

NerdWallet gives the company a 4.5 out of 5-star rating for its overall performance. Some of the factors that give the company an edge over other insurance companies include their prices and discounts, financial strength, ease of filing claims, and complaints data from the National Association of Insurance Commissioners.

Another site, monegeek.com, gives Progressive Insurance an overall rating of 88 out of 1000, a customer satisfaction rate of 3/5, a discount rate of 5/5, and a stability rate of 4.5/5.

Compared to the size of the company, the scores are good and the company receives fewer complaints than other companies. The company also offers a variety of helpful tools for tech-savvy customers.

Progressive Home Insurance Reviews

Besides auto insurance, Progressive also offers home insurance coverage. However, according to Progressive Insurance reviews, the company only acts as an agency, connecting customers and available home insurers.

The company you are put in touch with depends on your method of purchase. Some of its home insurance affiliates include companies such as National General Insurance and American Strategic Insurance Corp (ASI).

You can request a quote and make payments for the policy of your choice using the following three channels:

  • Online via the official website
  • Through a local agent/agent portal
  • By phone call

However, it is essential to understand that your insurance policy will be from a third-party company and not from Progressive. Your claims will also go to the third-party company insuring your home, not Progressive.

Progressive can connect customers to carriers in all states except Hawaii and Alaska. Although you can make adjustments and upgrade your policy, there are standard coverages that come with your home insurance.

They understand:

Cover Object

The apartment Provides payment for home repair or renovation

Other Structures Coverage for additional structures that are not attached to the house, such as the fence and the shed Individual ownership Provides payment for replacement or repair of personal effects such as furniture, clothing, etc.

Additional living expenses If your home needs coverage repair and you need to stay somewhere (eg a hotel) during the period, this policy covers living expenses, meals, and other expenses that may occur during the period.

Responsibility If you are responsible for inflicting injury on other people or damaging their property, this policy covers the bills.

Medical fees When a guest in your home suffers an injury (regardless of fault), this insurance covers their payment.

Depending on your insurer and your location, you may be able to access additional services such as:

  • Water backflow insurance 
  • Personal injury insurance
  • Extended home replacement insurance
  • Additional valuables insurance

Advantages and disadvantages of progressive insurance

Advantages

  • Progressive Insurance allows customers who hold different policies with them (eg, home and auto) to bundle them together and take advantage of multi-policy discounts.
  • The company is innovative and technology-driven with an elaborate website that provides detailed quotes and calculations for the cost of your home. They also provide chat apps and other tools on their website which help in handling customer queries.
  • Collision coverage also gives you protection against pet injuries.
  • Customers get carpool coverage every time they have their application.

Disadvantages

  • According to JD Power 2019, customer satisfaction is just average
  • The cost of coverage and the discount you receive may vary by state.
  • A little more expensive than other competitors
  • Customers cannot file a claim at home via progressive
  • She does not take out her home insurance policy. He rather plays the role of intermediary between the client and the insurer.

Verdict

According to various progressive insurance journals, the company is well established and legit. With offices in different states and over 84 years in business, it’s not a company with skeletons in its closet. The company has grown over the years to offer a variety of insurance policies that cover different areas that appeal to more customers.

However, if you are looking for customer satisfaction and lower premium costs, you may want to look elsewhere. Progressive is priced a bit higher than other competitors in the industry. Not typical for any other insurance company selling an affiliate policy, it is the only company that allows its customers to choose their insurer.

Progressive also allows customers to benefit from discounts through the group purchase of policies.

By aamritri

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