Why Is Progressive So Cheap? (2024)

FAQs

Is Progressive insurance really cheaper? ›

Progressive insurance is not the cheapest auto insurer and is typically only cheaper than average for those with a DUI or other higher risk factors on their record.

Progressive is so cheap because it offers a wide variety of discounts and gives consumers tools to acheive the best rates possible, such as Progressive's price comparison tool and their Name Your Price program.

Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.

Your Progressive rates may increase after six months depending on a number of factors. Like other car insurance providers, Progressive will typically raise your rates if you receive a speeding ticket or moving violation, cause an accident or make comprehensive insurance claims.

If you have extremely bad credit, State Farm could be a slightly better option. On average, State Farm offers somewhat cheaper rates than Progressive for drivers with credit scores of less than 580. Drivers with exceptional credit — a score of 800 or better — should likewise look into State Farm.

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In terms of car insurance costs, Allstate is more expensive than other top competitors like Progressive, Geico and State Farm. In the category of affordability, we rate Progressive 7.8 out of 10.0 stars and Allstate 7.4 out of 10.0 stars.

Geico and USAA are among the insurance companies that are cheaper than Progressive.

We ranked State Farm second overall in our 2023 study of the best car insurance companies, while Progressive came in ninth. We at the MarketWatch Guides Team examined each company's industry reputation, average rates, coverage options and customer service ratings to see how they compare.

Who is the most expensive to insure for car insurance? ›

On average, Michigan and Florida are the most expensive states for both liability and full coverage. Our research on average rates found that Dodge tends to be the automaker with the most expensive coverage and that the Dodge Charger has the most expensive car insurance of any model.

Other potential reasons why your Progressive premium went up include factors out of your control, such as increased claims in your ZIP code. In addition, recent trends have driven up auto insurance costs across the board, not just for Progressive. For instance, inflation has increased...

With increasing costs across various parts of the automotive industry, from higher average repair costs to continuing supply chain issues, auto insurance companies have needed to raise rates to turn a profit.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

In fact, Progressive is one of the 10 cheapest insurers nationally, according to WalletHub's analysis. Even though Progressive offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics.

When comparing Allstate vs. Progressive, we rate Progressive higher in several review categories and have found that it's a cheaper option for most drivers. Progressive has comprehensive coverage offerings and mostly positive customer reviews, although Allstate scores better during the claims process.

Progressive: Customer Experience. Liberty Mutual has slightly higher customer satisfaction ratings than Progressive. In terms of overall satisfaction with the auto insurance quotes process, Liberty Mutual pulls ahead according to the 2023 J.D. Power U.S. Insurance Shopping Study^℠.