Progressive Insurance: Everything you need to know
- Headquarters: 6300 Wilson Mills Road Box W33, Mayfield Village, Ohio 44143
- Net premiums written: $40.6 billion (2020)
- Policies written: 24.7 million (2020)
- Total assets: $64.1 billion (2020)
- Underwriting expertise: Vehicle, Property, Commercial, and Personal
- Key people: Tricia Griffith – President and CEO; Karen Bailo – Commercial Lines President; Steve Broz – Chief Information Officer; Pat Callahan – Personal Lines President; Jeff Charney – Chief Marketing Officer; Dan Mascaro – Chief Legal Officer; John Murphy – Customer Relationship Management President; Lori Niedert – Chief Human Resource Officer; Andrew Quigg – Chief Strategy Officer; John Sauerland – Chief Financial Officer; Michael Sieger – Claims President
Pros
- Offers customizable auto and home insurance coverage
- Apart from offering a range of qualifying discounts, auto insurance discounts rank among the industry’s best
- Customers can access a range of user-friendly online tools and resources
- Above-average grade in A.M. Best’s rating indicates its strong financial health
Cons
- Home and auto insurance policies are rated below the industry average in terms of claims satisfaction based on J.D. Power’s ratings
- Life insurance policy options are limited compared to other providers
- Offers limited options for additional home insurance coverage
- NAIC’s complaints index shows a relatively a high number of complaints for many of its insurance products
Common coverage types
Progressive Insurance: Everything you need to know
- Headquarters: 6300 Wilson Mills Road Box W33, Mayfield Village, Ohio 44143
- Net premiums written: $46.4 billion (2021)
- Policies written: 26.4 million (2021)
- Total revenues: $47.7 billion (2021)
- Underwriting expertise: Vehicle, property, commercial, and personal
- Key people: Tricia Griffith (president and chief executive officer), Karen Bailo (commercial lines president), Steve Broz (chief information officer), Pat Callahan (personal lines president), Remi Kent (chief marketing officer), Dan Mascaro (chief legal officer), Lori Niederst (customer relationship management president), Bill Clawson (chief human resource officer), Andrew Quigg (chief strategy officer), John Sauerland (chief financial officer), John Murphy (claims president)
Pros
- Progressive Insurance offers customizable auto and insurance coverage.
- Apart from offering a range of qualifying discounts, its auto insurance discounts rank among the industry’s best.
- Progressive Insurance’s customers can access a range of user-friendly online tools and resources.
- The firm’s above-average grade in A.M. Best’s rating indicates strong financial health.
Cons
- The company’s home and auto insurance policies are rated below the industry average in terms of customer satisfaction based on J.D. Power’s ratings.
- Progressive Insurance’s life insurance policy options are limited compared to other providers.
- It also offers limited options for additional home insurance coverage.
- NAIC’s complaints index shows a relatively high number of complaints about many of its insurance products.
Common coverage types
| Auto insurance | |
|---|---|
| Standard coverage type | What it pays for |
| Liability coverage | Bodily injury or property damage caused by the policyholder while driving, up to the policy’s limits |
| Comprehensive coverage | Events out of the driver’s control, including fire, theft, vandalism, hitting an animal, glass breakage, or acts of nature |
| Collision coverage | Cost to repair or replace the damaged vehicle if it collides with another object such as a tree, guardrail, fence, or another vehicle |
| Uninsured/underinsured insurance coverages | Bodily injuries sustained by the policyholder and their passengers and cost to repair or replace their vehicle if the at-fault driver has no and not enough coverage. |
| Medical payments | Medical and funeral expenses for the policyholder and their passengers, regardless of who is at fault; also covers expenses if the accident happens in another vehicle the policyholder and their family members are riding in, or if they are hit while walking or riding a bicycle |
| Extra coverage | |
| Loan/lease payoff | Also known as gap insurance; can cover the difference between what the policyholder owes and what the vehicle is actually worth or up to 25% of the actual cash value |
| Rental car reimbursement | Car rental expenses up to driver’s policy limits while their vehicle is at the shop; routine maintenance is excluded |
| Custom parts and equipment (CPE) value coverage | Cost to repair or replace items that were not installed by the manufacturer, including stereo, navigation system, custom wheels, or even a paint job |
| Rideshare coverage | The gaps that the driver’s rideshare company does not cover such as while they are logged into a ridesharing app and waiting for a trip request |
| Roadside assistance | Towing services if the car breaks down for any reason; also covers lock-out service, flat tire changes, fuel/fluid delivery, and other related issues |
| Deductible savings bank | Subtracts $50 from the collision and comprehensive deductible for every claim-free policy period |
Progressive’s auto insurance discounts
- Multi-policy discount – Policyholders can save an average of 5% in premium by combining auto insurance with other policies
- Multi-car discount – An average of 4% discount for drivers with more than one vehicle listed in their policy
- Continuous insurance – Customers switching to Progressive can save an amount depending on how long they have been continuously insured with their previous insurer/s
- Snapshot® safe driver discount – The app personalizes the policyholder’s rate based on how safe they drive
- Teen driver discount – Offsets some of the cost of adding a teen driver to the policy
- Good student discount – By adding a full-time student who maintains a B average or better to their policy, drivers can save an average of 10% on their premium
- Distant student discount – For drivers with a full-time student 22-years old or younger and who lives more than 100 miles from home on their policy as long as the student does not have a vehicle while at school
- Homeowner discount – Nearly 10% discount for homeowners even if their home is not insured through Progressive’s network of home insurers
- Online quote discount – An average of 7% savings for customers who quote their car insurance online or if a licensed representative finishes their quote over the phone
- Sign online discount – For policyholders who sign their documents online
- Paperless discount – For policyholders who opt to receive their documents via email
- Pay in full discount – For policyholders who pay their policy in full upfront
- Automatic payment discount – For policyholders who set up automatic payments from a checking account, credit card, or debit card
2021 J.D. Power customer satisfaction rating
856 out of 1,000 points (sixth among large auto insurers in the US)
Cost to insure most popular cars
Average annual premium in 2022, according to The Zebra:
#1. Ford F-150: $1,410
#2. Chevrolet Silverado: $1,501
#3. Dodge Grand Caravan: $1,231
#4. Toyota RAV4: $1,520
#5. Honda CR-V: $1,371
#6. Nissan Frontier: $1,394
#7. Kia Sedona: $1,238
#8. Subaru Forester: $1,482
#9. GMC Sierra $1,487
#10. Chevrolet Equinox $1,389
Car insurance rates by age
2021 average rates according to US News:
25-year-old female: $1,605
25-year-old male: $1,635
35-year-old female: $1,302
35-year-old male: $1,237
60-year-old female: $1,101
60-year-old male: $1,126
Car insurance rates by driving record
2021 average rates according to US News:
$1,334 for clients with a clean driving record
$1,759 for drivers with one speeding violation
$2,237 for those with one accident, and
$1,733 for those with one DUI
| Homeowners insurance | |
|---|---|
| Standard coverage types | What it pays for |
| Dwelling coverage | Damage to the house and anything permanently attached to it, including garage, roof, chimneys, deck, countertops, cabinets, flooring, and vanities |
| Other structures | Damage to structures not permanently attached to the house |
| Personal possessions | Personal belongings, including electronics, furniture, clothes, and tools/power equipment, if they are stolen or damaged |
| Loss of use | Temporary living expenses, including hotel, rent, and food, if the home is damaged from a covered loss and the policyholder cannot stay there |
| Personal liability | Legal expenses stemming from lawsuits against the policyholder or their family member due to injury or property damage |
| Medical payments | Medical bills if someone is hurt while on the policyholder’s property |
| Optional coverages | |
| Water back-up | Water damage from backed-up sump pumps and sewer systems |
| Personal injury | Uncommon but expensive lawsuits against the policyholder, including slander or libel, wrongful entry or malicious prosecution, wrongful eviction, and false arrest, detention, or imprisonment |
Perils that Progressive’s homeowners’ insurance covers
- Lightning
- Fire and smoke
- Tornadoes
- Power surges
- Damage from the weight of ice, snow, or sleet
- Volcanic eruption
- Windstorms and hail
- Theft
- Explosions
- Vandalism and riots
- Car/aircraft crashing into the home
- Falling trees or other objects
- Water damage (from leaking roofs, bursting pipes, or broken appliances, but not floods)
What’s not covered by Progressive’s homeowners’ insurance
- Floods
- Earthquakes, landslides, and mudslides
- Sinkholes
Progressive’s homeowners’ insurance discounts
- Bundle home and auto discount – An average of 5% discount for bundling home and auto insurance policies (savings applied on auto insurance)
- Safety and alarm discounts – If the home has safety features installed such as automatic sprinklers, security systems, and cameras
- Quote in advance – For customers who get a quote at least 10 days before their policy starts
- New purchase – For customers who are purchasing a new home (does not have to be newly built) or switching from a renters’ insurance policy
- Receive documents by email – For policyholders who opt to receive their documents via email
- New home construction – The newer the home, the bigger the discount
- Pay in full – For customers who pay for the full 12-month policy upfront
2021 J.D. Power customer satisfaction rating
821 out of 1,000 points (12th among home insurers in the US)
| Life insurance | |
|---|---|
| Coverage type | Features and benefits |
| Term life insurance | Provides coverage for a set number of years, paying out as long as the policy has not expired, and the policyholder has paid the premiums |
| Whole life insurance | Provides lifetime coverage; features fixed premiums and cash value components that policyholders may be able to borrow against over time |
| Universal life insurance | Also called adjustable life insurance; allows policyholders to increase or decrease their death benefit and adjust or skip monthly premiums within certain limits |
| Variable life insurance | Built on two pieces:Face value death benefit: Fixed death benefit to be paid out upon the policyholder’s passing as long as premiums are paidVariable cash value: The cash value will rise and fall based on the payments made and the performance of the selected investments |
| Final expense life insurance | Also known as burial insurance; covers funeral costs, hospital bills, and related expenses |
Comparison of Progressive’s life insurance policies
| Life insurance type | Coverage length | Best for ages | Builds cash value? | Death benefit amount |
|---|---|---|---|---|
| Term | 10, 15, 20, 30 years | 18 to 65 | No | $100,000+ |
| Whole | Lifetime | 18 to 65 | Yes | $50,000+ |
| Universal | Lifetime | 18 to 65 | Yes | $50,000+ |
| Variable | Lifetime | 18 to 65 | Yes | $50,000+ |
| Final Expense | Lifetime | 50 to 85 | Yes | $2,500 to $35,000 |
About
The Progressive Group of Insurance Companies (Progressive) is one of the most popular insurance brands in the US. The insurance juggernaut claims to be the third-largest auto insurer and the number one motorcycle/specialty RV insurer in the country. Progressive rubs shoulders with firms like State Farm, Allstate, GEICO, and Farmers Insurance Group, and writes more than 13 million auto policies per year.
Though best known for driving innovation in the personal auto market, Progressive also writes commercial auto and a number of other personal lines risks, including homeowners’ insurance. The firm sells insurance directly to the consumer or via independent agents. Progressive’s Agency business sells through more than 30,000 independent insurance agencies across the US.
Progressive Insurance: through history
Progressive was born on March 10, 1937, when Joseph Lewis and Jack Green set up Progressive Mutual Insurance Company to provide vehicle owners with security and protection. The pair were both lawyers and thought starting an insurance company might be a good investment. Fast forward 80 years and their bet seems to have paid off.
True to its name, Progressive is all about finding innovative ways to improve the auto insurance industry. It became the first auto insurer to offer drive-in claims service, and later the first company to allow clients to pay premiums in installments as opposed to annual payments.
In the 1950s, successful growth prompted a move to brand new offices in downtown Cleveland. Following the death of Joseph Lewis in 1955, Jack Green became Progressive CEO and Joseph’s son Peter began the start of a fruitful career with the firm. He immediately looked for ways to further differentiate Progressive in the marketplace. His efforts led to the establishment of Progressive Casualty Company in 1956, a unit formed to write auto insurance for high-risk drivers.
Further growth and expansion in the early 1960s resulted in the formation of The Progressive Corporation in 1965. Peter Lewis was named CEO in the same year, and he held the top position for 35-years until Glenn Renwick took over in 2000. Renwick was succeeded by current CEO and president Tricia Griffith in 2016.
Progressive Insurance: embracing the internet
Progressive was the first major auto insurer in the world to launch a website. In a revolutionary move, the site was born in 1995, and by 1996 consumers could obtain comparison rates online. Just one year later, consumers were able to buy Progressive auto insurance policies online in real-time.
In 2021, the insurer now has a thriving direct-to-consumer business, which is supported by a number of 24/7 digital tools, including: online policy service and management, online claims reporting, rate ticker (a comparison tool), independent agent locator, chatbots, and an instant quoting service.
Progressive Insurance: product lines
Progressive is best known for its auto insurance products, but the firm offers solutions for a vast range of personal and commercial risks. Its impressive book includes, but is not limited to: car insurance, condo insurance, boat insurance, pet insurance, home insurance, RV insurance, renters’ insurance, motorcycle insurance, life insurance, commercial insurance, and insurance bundles.
Progressive Insurance: distribution method
Progressive has been building solid partnerships with the independent agent channel for more than 75 years. The firm claims to be the number one writer of auto insurance policies through independent insurance agents. In 2021, Progressive works with approximately 43,000 agents and brokers from thousands of agencies across the US.
Despite supporting the independent agent channel, Progressive has never been one to shy away from innovation. The insurer offers a number of direct purchase options and programs to meet evolving customer needs.
What is Progressive looking for in a new independent agent partner?
Information shared on Progressive’s website states: “You need to have an agency license in good standing with the Department of Insurance in the state where you plan to write business, an active agency P&C Errors & Omissions policy with minimum aggregate limits of $300,000. Also, during this process we’ll also conduct a criminal background check on your agency – it’s how we ensure every Progressive customer has the best experience possible.”
Who is Flo?
Anyone in the US with a television has likely seen Flo selling Progressive insurance on their screens at some point in the past decade. Since 2008, the fictional salesperson has featured in more than 100 television commercials for the insurance giant. She’s known as an extremely enthusiastic and helpful insurance salesperson, recognized for her upbeat personality, heavy makeup, and retro hairstyle. Flo is also popular on social media, amassing millions of likes on her Facebook page and many followers on Twitter.
Progressive’s auto insurance discounts
- Multi-policy discount: Policyholders can save an average of 5% in premium by combining auto insurance with other policies
- Multi-car discount: An average of 4% discount for drivers with more than one vehicle listed in their policy
- Continuous insurance: Customers switching to Progressive Insurance can save an amount depending on how long they have been continuously insured with their previous insurer/s
- Snapshot safe driver discount – The app personalizes the policyholder’s rate based on how safe they drive
- Teen driver discount: Offsets the some of the cost of adding a teen driver on the policy
- Good student discount: Drivers can save an average of 10% in their premium by adding a full-time student who maintains a B average or better to their policy
- Distant student discount: For drivers with a full-time student 22-years old or younger and who lives more than 100 miles from home on their policy as long as the student does not have a vehicle while at school
- Homeowner discount: Nearly 10% discount for homeowners even if their home is not insured through Progressive Insurance’s network of home insurers
- Online quote discount: An average of 7% savings for customers who quote their car insurance online or if a licensed representative finishes their quote over the phone
- Sign online discount: For policyholders who sign their documents online
- Paperless discount: For policyholders who opt to receive their documents via email
- Pay in full discount: For policyholders who pay their policy in full up front
- Automatic payment discount: For policyholders who set up automatic payments from a checking account, credit card, or debit card
2021 J.D. Power customer satisfaction rating (auto insurance)
856 out of 1,000 points (sixth among large auto insurers in the US)
Cost to insure most popular cars
| Average annual premium in 2020, according to The Zebra |
|---|
| 1. Ford F-150: $1,410 |
| 2. Chevrolet Silverado: $1,501 |
| 3. Dodge Grand Caravan: $1,231 |
| 4. Toyota RAV4: $1,520 |
| 5. Honda CR-V: $1,371 |
| 6. Nissan Frontier: $1,394 |
| 7. Kia Sedona: $1,238 |
| 8. Subaru Forester: $1,482 |
| 9. GMC Sierra $1,487 |
| 10. Chevrolet Equinox $1,389 |
Car insurance rates by age
| 2021 average rates according to US News: |
|---|
| 2021 average rates, according to US News |
| 25-year-old female: $1,605 |
| 25-year-old male: $1,635 |
| 35-year-old female: $1,302 |
| 35-year-old male: $1,237 |
| 60-year-old female: $1,101 |
| 60-year-old male: $1,126 |
Car insurance rates by driving record
| 2021 average rates, according to US News |
|---|
| $1,334 for clients with a clean driving record |
| $1,759 for drivers with one speeding violation |
| $2,237 for those with one accident, and |
| $1,733 for those with one DUI |
| Homeowners insurance | |
|---|---|
| Standard coverage types | What it pays for |
| Dwelling coverage | Damage to the house and anything permanently attached to it, including garage, roof, chimneys, deck, countertops, cabinets, flooring, and vanities |
| Other structures | Damage to structures not permanently attached to the house |
| Personal possessions | Personal belongings, including electronics, furniture, clothes, and tools/power equipment, if they are stolen or damaged |
| Loss of use | Temporary living expenses, including hotel, rent, and food, if the home is damaged from a covered loss and the policyholder cannot stay there |
| Personal liability | Legal expenses stemming from lawsuits against the policyholder or their family member due to injury or property damage |
| Medical payments | Medical bills if someone is hurt while on the policyholder’s property |
| Optional coverages | |
| Water back-up | Water damage from backed-up sump pumps and sewer systems |
| Personal injury | Uncommon but expensive lawsuits against the policyholder, including slander or libel, wrongful entry or malicious prosecution, wrongful eviction, and false arrest, detention, or imprisonment |
Perils that Progressive Insurance’s homeowners’ policy covers:
- Lightning
- Fire and smoke
- Tornadoes
- Power surges
- Damage from the weight of ice, snow, or sleet
- Volcanic eruption
- Windstorms and hail
- Theft
- Explosions
- Vandalism and riots
- Car/aircraft crashing into the home
- Falling trees or other objects
- Water damage (from leaking roofs, bursting pipes, or broken appliances, but not floods)
What’s not covered by Progressive Insurance’s homeowners’ policy:
- Floods
- Earthquakes, landslides, and mudslides
- Sinkholes
Progressive Insurance’s homeowners’ insurance discounts
- Bundle home and auto discount: An average of 5% discount for bundling home and auto insurance policies (savings applied on auto insurance)
- Safety and alarm discounts: If the home has safety features installed such as automatic sprinklers, security systems, and cameras
- Quote in advance: For customers who get a quote at least 10 days before their policy starts
- New purchase: For customers who are purchasing a new home (does not have to be newly built) or switching from a renters’ insurance policy
- Receive documents by email: For policyholders who opt to receive their documents via email
- New home construction: The newer the home, the bigger the discount
- Pay in full: For customers who pay for the full 12-month policy upfront
2021 J.D. Power customer satisfaction rating (home insurance)
821 out of 1,000 points (12th among home insurers in the US)
| Life insurance | |
|---|---|
| Coverage type | Features and benefits |
| Term life insurance | Provides coverage for a set number of years, paying out as long as the policy has not expired, and the policyholder has paid the premiums |
| Whole life insurance | Provides lifetime coverage; features fixed premiums and a cash value components that policyholders may be able to borrow against over time |
| Universal life insurance | Also called adjustable life insurance; allows policyholders to increase or decrease their death benefit and adjust or skip monthly premium within certain limits |
| Variable life insurance | Built on two pieces: Face value death benefit: Fixed death benefit to be paid out upon the policyholder’s passing as long as premiums are paid Variable cash value: The cash value rises and falls based on the payments made and the performance of the selected investments |
| Final expense life insurance | Also known as burial insurance; covers funeral costs, hospital bills, and related expenses |
Comparison of Progressive Insurance’s life insurance policies
| Type | Coverage length | Best for ages | Builds cash value? | Death benefit amount |
|---|---|---|---|---|
| Term | 10, 15, 20, 30 years | 18 to 65 | No | $100,000+ |
| Whole | Lifetime | 18 to 65 | Yes | $50,000+ |
| Universal | Lifetime | 18 to 65 | Yes | $50,000+ |
| Variable | Lifetime | 18 to 65 | Yes | $50,000+ |
| Final Expense | Lifetime | 50 to 85 | Yes | $2,500 to $35,000 |
About
The Progressive Group of Insurance Companies (Progressive) is one of the most popular insurance brands in the US. The insurance juggernaut claims to be the third largest auto insurer and the number one motorcycle/specialty RV insurer in the country. Progressive rubs shoulders with firms like State
Farm, Allstate, GEICO, and Farmers Insurance Group, and writes more than 13 million auto policies per year.
Though best known for driving innovation in the personal auto market, Progressive also writes commercial auto and a number of other personal lines risks, including homeowners’ insurance. The firm sells insurance directly to the consumer or via independent agents. Progressive’s Agency business sells through more than 30,000 independent insurance agencies across the US.
History
Progressive was established on March 10, 1937, when Joseph Lewis and Jack Green set up Progressive Mutual Insurance Company to provide vehicle owners with security and protection. The pair were both lawyers and thought starting an insurance company might be a good investment. Fast forward 80 years and their bet seemed to have paid off.
True to its name, Progressive is all about finding innovative ways to improve the auto insurance industry. It became the first auto insurer to offer drive-in claims service, and later the first company to allow clients to pay premiums in installments as opposed to annual payments.
In the 1950s, successful growth prompted a move to brand new offices in downtown Cleveland. Following the death of Joseph Lewis in 1955, Jack Green became Progressive CEO and Joseph’s son Peter began the start of a fruitful career with the firm. He immediately looked for ways to further differentiate Progressive in the marketplace. His efforts led to the establishment of Progressive Casualty Company in 1956, a unit formed to write auto insurance for high-risk drivers.
Further growth and expansion in the early 1960s resulted in the formation of The Progressive Corporation in 1965. Peter Lewis was named CEO in the same year, and he held the top position for 35-years until Glenn Renwick took over in 2000. Renwick was succeeded by current CEO and president Tricia Griffith in 2016.
Embracing the internet
Progressive was the first major auto insurer in the world to launch a website. In a revolutionary move, the site was born in 1995, and by 1996 consumers could obtain comparison rates online. Just one year later, consumers were able to buy Progressive auto insurance policies online in real time.
In 2021, the insurer now has a thriving direct-to-consumer business, which is supported by a number of 24/7 digital tools, including: online policy service and management, online claims reporting, rate ticker (a comparison tool), independent agent locator, chatbots, and an instant quoting service.
Product lines
Progressive is best known for its auto insurance products, but the firm offers solutions for a vast range of personal and commercial risks. Its impressive book includes, but is not limited to: car insurance, condo insurance, boat insurance, pet insurance, home insurance, RV insurance, renters’ insurance, motorcycle insurance, life insurance, commercial insurance, and insurance bundles.
Distribution method
Progressive has been building solid partnerships with the independent agent channel for more than 75 years. The firm claims to be the number one writer of auto insurance policies through independent insurance agents. In 2021, Progressive works with approximately 43,000 agents and brokers from thousands of agencies across the US.
Despite supporting the independent agent channel, Progressive has never been one to shy away from innovation. The insurer offers a number of direct purchase options and programs to meet evolving customer needs.
What is Progressive looking for in a new independent agent partner?
Information shared on Progressive’s website states: “You need to have an agency license in good standing with the Department of Insurance in the state where you plan to write business, an active agency P&C Errors & Omissions policy with minimum aggregate limits of $300,000. Also, during this process we’ll also conduct a criminal background check on your agency – it’s how we ensure every Progressive customer has the best experience possible.”
Who is Flo?
Anyone in the US with a television has likely seen Flo selling Progressive insurance on their screens at some point in the past decade. Since 2008, the fictional salesperson has featured in more than 100 television commercials for the insurance giant. She’s known as an extremely enthusiastic and helpful insurance salesperson, recognized for her upbeat personality, heavy makeup, and retro hairstyle. Flo is also popular on social media, amassing millions of likes on her Facebook page and many followers on Twitter.
