Car Insurance Survey: Progressive Annual Premiums Cost Over 10% More than GEICO

by Andrew Evans | Automobile.com | 5/22/2012

In a recent Automobile.com survey, Progressive car insurance policyholders reported paying 10.3% more to insure their vehicles annually than GEICO customers. The survey revealed that Progressive customers pay an annual average of $986.69 for car insurance while GEICO customers pay an average of $894.99 each year for comparable coverage.

Not only do GEICO customers report paying less for protection, they also receive better coverage on average. For the purpose of this study, insurance coverage was divided into four categories with increasing amounts of protection*:

• State minimum coverage - Legal minimum coverage amount varies by state
• Basic coverage - $50,000/$100,000 injury, $25,000 property
• Standard coverage - $100,000/$300,000 injury, $50,000 property
• Superior coverage - $250,000/$500,000 injury, $100,000 property

According to the survey, close to 17% of GEICO customers carry the superior coverage level compared to just over 10% of Progressive customers. When standard and superior coverage levels were combined, GEICO beats Progressive 59.21% to 52.55%, respectively. While both companies target consumers looking to save significant amounts of money, the Automobile.com study demonstrates that GEICO customers receive higher amounts of protection at a lower cost.

The survey also revealed Progressive policyholders drive vehicles that are approximately three quarters of a year older than vehicles driven by GEICO customers. While this finding contradicts the notion that new vehicles are more expensive to insure than older vehicles, it brings the topic of theft rates into question. Only three of the top 10 stolen vehicles reported by the National Insurance Crime Bureau (NICB) were produced in the last 12 years. Esurance.com reports insurers examine theft rates when determining the cost of a policy. Combined with the NICB data that show older cars are more likely to be stolen, this becomes an important consideration when comparing GEICO and Progressive.

Beyond the aforementioned findings, it is difficult to pinpoint the exact causes of the overall cost disparity because there are many variables to consider when comparing insurers side-by-side. For example, one insurer may provide additional discounts for upgraded safety features while a competitor might place more of an emphasis on driving record when calculating policy costs. Nevertheless, the data suggest that GEICO customers may be getting a better deal on premiums than drivers insured by Progressive.

In an effort to appeal to budget conscious drivers, Progressive recently introduced a "pay as you drive" insurance option which bases premiums on the number of miles driven. The company is advertising this type of coverage as a way to cut costs for policyholders who drive less. Although GEICO leads in savings and coverage, Progressive has a slightly larger customer base. According to Bloomberg, Progressive is the second largest auto insurer with over 11 million subscribers while GEICO comes in at third.

Maximize Savings

Drivers who want to maximize insurance premium savings should consider comparing policies and requesting quotes from multiple insurers or by utilizing an independent, unbiased resource. Automobile.com allows users to compare quotes from multiple providers by completing a single form. All auto insurance consumers are encouraged to routinely compare car insurance quotes to ensure they are receiving the best coverage at the lowest price.

* Car Insurers typically display coverage amounts using three figures. For example, basic coverage ($50,000/$100,000/$25,000 or 50/100/25) would protect as follows: $50,000 in bodily injury liability for an individual, $100,000 for all injured parties in a single accident and $25,000 maximum for property damage liability in a single accident. Automobile.com is an independent auto insurance resource website. Automobile.com is not advertising on behalf of any companies listed or mentioned on the website.