(FYI – I don’t work for Geico)
My insurance policy just went down from $680 to $140 per month by switching from Progressive to Geico???
Progressive put me in an awkward position so I began calling around and contacted Erie.
Phoned Erie and they couldn’t provide an immediate quote which was odd but either way it was emailed an hour later. It was more than Progressive.
While I wasn’t shopping around to save, I decided to call again. Agent explained Erie’s minimums are more than both the state and Progressive. Fine. Genuinely friendly agent who actually recommended I call Geico. Huh, okay.
I sign up online with Geico and I have a quote and the. Insured for $100 per month… Honestly thought there was some kind of error, perhaps liability only.
Anyway, I just got off the phone with Geico. They confirmed full coverage. I had previously not added my daughter because I was unsure how to register her with a learner’s permit.
After adding my daughter, bill goes up from $100 to $140 per month. The kicker – Progressive was charging me ~$390 per month for my daughter.
Finally, what I absolutely cannot grasp is how pricing can be so vastly different for such a commoditized product. Perhaps someone will post a comment explaining the difference.
Posted by taokumiike
21 Comments
Large differences in pricing between companies is common. That’s why it’s recommended to shop around every once in a while.
Put simply, every company just has different preferences
Full coverage lol? Define full coverage, state minimum? Erie is great by the way theres a reason they wont do state minimums..
Company risk pools are different and need balancing.
When companies race to the bottom of prices they tend to have big waves of policies that come in, which then reveals that their pricing was not sufficient for the claims so then they take big jumps and rate. Progressive and Geico both make a big deal about how cheap their policies are so their rates typically will jump back and forth between being very cheap and being pretty expensive. As a general rule I would avoid companies like that and stick with a company that’s more stable in their pricing, as long as it has good customer service, claims, and strong policy language probably a better bet in the long run. That being said when you have a newer driver it magnifies those differences by a ton.
There’s also other reasons, such as the threshold that each company cedes a policy at, it sounds like maybe they’re each treating your permitted driver differently, which is odd since permanent drivers don’t typically add to the rate.
Has that quote gone through underwriting? Because if it hasn’t, the price is not set in stone.
I just switched from Liberty Mutual to Progressive and had the the same experience whereby Progressive was $2,500 less per year.
I was told that we should switch carriers every few years because loyalty these days means higher premiums. It’s sad.
Different companies have vastly different rating algorithms based on the company’s loss history and thus need to adjust premiums in order to stay in business, their desired demographic, among other things.
Every carrier has their own rating model and market appetite. If you fit into their underwriting appetite, you’ll get a decent rate. If you don’t, you won’t. Then you’ll need to shop around and find which carrier is offering the best rates for your risk profile.
There are many auto insurance carriers that will take any risk that walks in the door and others are much more restrictive with who they want on their books.
Progressive did not change me for the kids until they got their license. Are you sure you listed her correctly?
I switched from State Farm to progressive bc car insurance was much less. But then I screwed myself bc I no longer got the bundled discount w State Farm for home insurance. When I added that through progressive it made the total higher than what I was paying w State Farm.
I had been with progressive for about 25 years. They went way up recently. I started checking around. Ended up with Geico. Went from 800 to 490 a month for the same coverage. Insurance companies have no loyalty to you. And honestly once they have you they will start raising your rates because they know you won’t shop around. Progressive didn’t even argue when I called to cancel. Just said wow you’ve been with us for a long time. Thank you. Your policy is cancelled.
I spend around $680 for 6 months on two vehicles one less than a year old the other 10 years old through progressive. I left Geico because it was cheaper for home and auto through progressive
What’s your liability coverage? Do you have uninsured/underinsured motorist coverage? Do you have rental car reimbursement? I’m willing to bet the policy quoted by Erie had much more coverage, which protects YOU. Also, once your daughter has a permit instead of a license, expect that rate to increase.
Post your quote and your old coverage, redact all pii info except the state.
That’ll give everyone an idea what you’re working with.
When people say the phrase “full coverage” it’s usually not a good sign…
You are getting the new account discount designed to “get you.” Rest assured it won’t be that at renewal time.
Lost me when you said they “confirmed full coverage” because that isn’t a thing.
Funny enough I had the exact opposite experience. Geico to Progressive was such a great move. Better rate, better service. And for the first time in years i haven’t switched every six months because progressive kept my rate the same for 18 months now
I was with country financial my whole life and my parents were too. Last year I couldn’t take their rates and shopped around. State Farm was dramatically cheaper. I called my agent one last time and they couldn’t believe the price I got. I told my brother and he thought it was a scam. In the end, State Farm got me, my brother, and my Dad to switch. We are all saving a ton.
Work in insurance. Sometimes rates are different due to activity dropping off from when the Progressive policy was started (a lot of companies factor in activity within last 5 years when determining your initial placement), underwriting formulas vary from company to company and consider the same risk factors differently, and companies can choose to delay inflation related increases to keep rates more competitive. Using driving based discounts can sometimes result in higher rates if telemetrics show youre a higher risk driver and rate accordingly. The next company wouldnt have access to this info. Its also possible but unlikely that progressive rating for lp driver as active (a school permit might trigger this.)
Geico is a master of marketing and they bet on the notion that you won’t shop around and just assume the price will be similar everywhere.
Just make sure the coverage limits& types of coverages match. “Full coverage” a term of art that is commonly misused.