Why Is Progressive So Expensive? Top Reasons for 2024 (2024)

FAQs

Why Is Progressive So Expensive? Top Reasons for 2024? ›

Progressive is so expensive because car insurance is expensive in general, due to rising costs for insurers. The price of a Progressive policy may also reflect the cost of staffing, marketing campaigns, and maintaining sales centers.

Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.

Key Points. Progressive has a history of underwriting profitable insurance policies. It crushed its peers on one key measure of profitability and turned in another stellar year for 2023. Its pricing power and ability to grow alongside inflation and economic growth make it an excellent long-term holding.

Your Progressive car insurance rates may have gone up due to an auto accident, a traffic violation, an address change or a new vehicle being added to your policy. Other potential reasons why your Progressive premium went up include factors out of your control, such as increased claims in your ZIP code.

2024 Auto Insurance Increases Will Hit You Hard! Full coverage costs $212 a month on average, while liability-only coverage costs $103 a month. That prices out to $2541 and $1238 a year, respectively. In 2023, the average price of full-coverage car insurance across the country went up by 24%.

Geico tends to offer lower rates for most policyholders and has slightly higher customer satisfaction scores. On the other hand, Progressive has great options for high-risk drivers and more widely available usage-based insurance. We recommend comparing rates from both when you shop.

Insurers compare the previous year's claim payouts to their revenue and adjust prices accordingly. If the previous period resulted in a deficit, the insurance company may raise rates going forward. If you have a six-month policy, you can expect this twice per year.

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.

Golden Rule

We value and respect our differences, act with kindness and caring, and treat others as they want to be treated.

Can you ask your insurance company to lower your rate? ›

In addition to each insurance company's specific pricing structure, state-specific regulations can come into play. Much like a utility service such as electricity or gas, you cannot negotiate a lower monthly car insurance payment.

However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb. Regardless of if you're buying a Kia or a Mercedes, the reality is there isn't too much room to work with when just looking at the mark up. This is where factory incentives come into play.

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.

Overall, WalletHub's editors give Progressive a rating of 3.9/5 due to its competitive rates, long list of discounts, and innovative use of technology to encourage price comparison and safe driving.

Claims service: Allstate

The company earned 882 points in the J.D. Power 2023 U.S. Auto Insurance Claims Satisfaction Study. That placed the company above the national average and eight out of the 24 companies in the study. Progressive earned 870 points, coming in 18th overall.

Car insurance costs have been on the rise, leaving drivers searching for ways to save on car ownership costs. In fact, according to a report from Bankrate, the average annual premium of full coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.

Rate level increases often come about because of trends in the industry towards more expensive vehicle repair and medical costs. Repairs and medical costs are almost always on the rise, so overall rate decreases are a very rare occurrence.

A confluence of forces were to blame: The Covid pandemic disrupted supply chains, pushing used car prices to record highs and making spare parts hard to get; out-of-practice drivers emerging from lockdowns caused more severe wrecks; and technological advancements like motion sensors made even the simplest parts, like a ...