Progressive vs Farmers – Which one is better?
The average American pays $1,674 every year for car insurance. In addition, nearly 215 million Americans have driver’s insurance. Many of them wonder which is better, Progressive car insurance or Farmers?
In the quest to find the best car insurance company, you have come across this blog post. We won’t leave you with mediocre information about Progressive vs. Farmers. So, you’ll be able to make an informed decision.
Right now, Progressive insurance is leading the way by insuring more drivers than Farmers. However, both companies are business competitors like Samsung and Apple in the mobile industry.
If you are new to car insurance or have decided to buy a new car, you will benefit from the information shared below. Moreover, if you are involved in the ridesharing business, you definitely need to know the difference between the insurance policies of Progressive and Farmers.
Clash of the Titans — Progressive vs. Farmers
Progressive and Farmers are the two biggest and most iconic car insurance companies in the United States. Farmers was founded in 1928, while Progressive began operations in 1937.
Progressive’s rich history began in Cleveland, Ohio. Fast forward 90 years later, and now Progressive auto insurance owns a whopping 13% market share, insuring more cars than Farmers.
Progressive might have won this battle, but the war isn’t over. There are still many factors to consider before announcing the winner in the Progressive vs. Farmers fight. While both companies have their fair share of the market, some people prefer one over the other. We are here to learn why people prefer Progressive over Farmers or vice versa.
Progressive vs. Farmers – Overall Rating
Farmers has nine years of additional experience over Progressive. However, its market share is three times lower than Progressive’s, standing at 4%. Despite the difference in market share, Progressive vs. Farmers is a debate among car owners. Moreover, Farmers and Progressive differ in affordability, services, customer satisfaction, and discounts. To elaborate on this point, we have shared the overall rating of both companies.
|Pricing & Discounts||4.8/5||4.0/5|
|Claims Satisfaction & Customer Experience||5.0/5||3.5/5|
These ratings assure potential customers that Progressive has the better financial strength to pay for insurance claims. Moreover, these ratings build customer confidence and serve as proof of financial reserve in case the company faces significant losses.
Farmers Auto Insurance Rating
Farmers is the 7th largest auto insurance company in the USA with a 4% market share. Many consumers trust Farmers insurance because of its rich history, diverse portfolio, and 96 years of experience. Even though Progressive has a higher market share and more insured vehicles under its name, Farmers is still popular in the market.
In fact, NerdWallet has rated Farmers auto insurance 4.5 stars for overall performance. Plus, the company offers many insurance plans. So, people who prefer to receive better discounts and have all their plans with one provider often choose Farmers auto insurance.
Progressive vs. Farmers — Car Insurance Rates Comparison
When you are shopping for car insurance, it’s important to learn which insurance company offers cheaper rates and provides products that meet your needs. Plus, you should get to know about the insurer’s customer service and turnaround time.
Here, we will review Progressive car insurance rates and compare them with Farmers. In addition, we will also determine why Progressive is so much cheaper.
Average Cost of Progressive Auto Insurance by State
Progressive insurance has a strong risk management team that determines optimum insurance rates for its customers. The rate of insurance per state is as follows.
- The Low-Cost States
Low-cost states are located far from coastal areas, which means they experience fewer natural disasters. Progressive insurance takes natural calamities under its risk management criteria and sets lower rates for states with fewer chances of glass damage and other harm due to natural disasters. These states include:
California, Tennessee, Wisconsin, Hawaii, Idaho, Iowa, Maine, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Illinois, Indiana, Vermont, South Dakota, and Wyoming.
- Average Cost of Progressive Insurance in the Low-Cost States
$682 per year
- Medium-Cost States
Some states in this list are near coastal areas, which increases the chance of catastrophic damage. Since coastal areas have harsh weather and experience natural calamities, medium-cost states have expensive insurance because companies have to make frequent payouts to customers for damage coverage. These states include:
Alabama, Alaska, Nebraska, New Mexico, Colorado, Minnesota, Mississippi, Missouri, Oklahoma, Oregon, Kansas, Pennsylvania, Virginia, Arizona, Arkansas, Washington, and West Virginia.
- Average Cost of Progressive Insurance in the Medium-Cost States
$819 per year
- The High-Cost States
High-cost states have nothing to do with their location. In fact, high-cost states are densely populated, with high chances of accidents, like New York. When accident chances increase, insurance companies have to make bigger and frequent payouts. High-cost states include:
Connecticut, Delaware, Nevada, New Jersey, Kentucky, Louisiana, Maryland, District of Columbia, Florida, Georgia, Massachusetts, Michigan, New York, Rhode Island, South Carolina, Texas, and Utah.
- Average Cost of Progressive Insurance in the High-Cost States
$1,142 per year
Does Progressive Insurance Raise Rates After 6 Months?
Yes, it’s true; Progressive’s insurance rates may increase after six months. However, this is often due to poor driving or driving violations. Additionally, there are some cases where Progressive insurance rates rise for a particular area without any relation to driving behavior.
Why Is Progressive So Much Cheaper?
Progressive insurance rates are lower than most companies because of simple economic factors. Since Progressive has a 13% market share, it generates more revenue than most companies.
Progressive follows a low-cost strategy in gaining new customers and plans to have more vehicles under its umbrella. In simple terms, Progressive insurance has goals to maximize profit by gaining more customers. As they enroll more drivers in their insurance program, their profit boosts and prices remain low.
Now, let’s look at the Progressive’s and Farmers’ ratings from third-party companies.
Farmers and Progressive Insurance Rating From Third-Party Companies
|Car Insurance Company||Bankrate Score||A.M. Best||J.D. Power||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
|Rating Organization||Progressive Rating||Description from Rating Organization|
|A.M. Best||A+ Superior||A+ Superior is the highest rating given to insurance companies with top-notch customer service and quick turnaround time.|
|Standard and Poor||AA||AA rating is given to the company with strong financial background and reserve to save the business from bankruptcy.|
|Moody’s Investors Services||AA||AA rating is given to companies with high-quality services and low credit risk.|
Progressive vs. Farmers: Rates by Age
Progressive insurance rates are cheaper than Farmers, and that’s an evident fact. The average insurance rate Progressive customers pay per year is $1,254. This is only 1% more than other insurance companies but definitely lower than Farmers.
Keep in mind that rates depend on several factors and may be higher than the ones shared here.
|Age||Progressive Average Annual Premium||Farmers Average Annual Premium|
As with most auto insurance companies, the rates are higher for young drivers. This is because young drivers are more likely to cause an accident than older and more experienced drivers. The chart represents the insurance rates by age, and it clarifies that your payments go down as you gain more driving experience.
Progressive vs. Farmers: Rates by Driving Record
A driving record plays a crucial role in determining your insurance premium. This is because insurance companies aren’t willing to bet on you if you have a record of frequent crashes. However, Progressive insurance is substantially cheaper than Farmers. Let’s look at the rates of both carriers based on driving record:
|Car Insurance Provider||Clean Driving Record||Speeding Ticket||Accident||DUI conviction|
How Far Back Does Progressive Look at Your Driving Record?
While some auto insurance companies will look back as far as five years for tickets and traffic violations, Progressive insurance is more lenient in this matter. According to data, Progressive insurance looks at as far as three years for traffic violations and tickets.
But if you have an unimaginable number of tickets under your name within three years, you might lose your chance of getting Progressive insurance. Plus, if you have a poor driving record, you will have to pay a higher premium for Progressive auto insurance.
Progressive vs. Farmers: Customer Experience
Customer experience is the center of all business activities. Clients aren’t interested in working with a company that has poor customer service. No matter how cheap their services are, the client is willing to pay extra for better customer handling. This applies to insurance services more than other businesses.
Progressive insurance customer service isn’t as great as Farmers’. According to several reviews, Progressive insurance customers aren’t happy with the services they get. This doesn’t mean Progressive insurance has poor insurance plans. Instead, it implies that Progressive auto insurance customer service needs a massive improvement.
On the other hand, the Farmer’s insurance customer service is far better than Progressive’s. An underlying reason for this might be that Farmers has fewer customers compared to Progressive. But this isn’t an excuse to keep customers waiting for their claim.
Progressive vs. Farmers: Discounts
In the table below, we’ve compared Progressive and Farmers insurance discounts.
|Good Student Discount||✔||✔|
|Pay in Full||✔|
|Anti-Lock Brake System||✔|
|Student Away at School||✔||✔|
Progressive vs. Farmers: Rates by Credit Level
State regulators usually don’t allow insurance companies to increase your premium based on your credit score. However, this doesn’t mean it won’t be considered when determining your insurance rates. The increase of insurance rates for low credit scores is a safety measure insurance companies take to prevent bad debts.
Let’s have a look at common insurance rates by credit score for Progressive and Farmers:
|Credit Score||Progressive Average Annual Premium||Farmers Average Annual Premium|
|Very Poor (300–579)||$3,602||$2,633|
|Very Good (740–799)||$1,453||$1,459|
What Credit Cards Does Progressive Insurance Accept?
Progressive insurance payment options include credit cards, such as VISA, Mastercard, and Discover. Customers can also pay through Paypal, personal check, checking account, Electronic Funds Transfer, and money order.
Progressive vs. Farmers: Accident Forgiveness
Accident forgiveness is a huge perk for drivers and a tipping point for most customers. Everyone undergoes a few accidents in their lifetime. Insurance companies that offer the best accident forgiveness programs are more popular among customers.
Accident forgiveness Farmers program allows up to one accident for every three years of driving. However, your accident will still stay on your driving record even if it’s “forgiven.” So, if you decide to switch insurance providers, your accident may impact your future rates.
On the other hand, Progressive accident forgiveness is not so forgiving. You are provided with up to $500 accident forgiveness on your first crash — at fault or not at fault. However, further continuation of Progressive accident forgiveness requires customers to stay accident-free for five years. This is two years more than what Farmers offers. Most customers believe it’s because of the low rates offered by Progressive insurance.
Accident forgiveness is a genuine program that promotes safer driving. However, many customers believe it’s not worth it.
Progressive vs. Farmers: Which Mobile Application Is Better?
In today’s digital world, it’s critically important to have an easy-to-use mobile app with all the necessary features. According to the App Store and Google Play user ratings, Farmer’s app has received higher scores than Progressive.
Below is a comparison of the Farmers and Progressive apps.
Progressive’s iOS App
Progress iOS app allows users to view their insurance details, I.D. cards, and discounts. Customers can also file a claim and attach pictures through the app without leaving their house. In addition, you can also make a policy change and request roadside assistance. The app has 3.5 stars based on 3,600 reviews.
Progressive Android App
The Progressive Android app offers all the features of the iOS app but has better ratings and more reviews. The Progressive Android app has a 4.1-star rating with over 44,000 reviews.
Farmers iOS App
Farmers’ iOS app allows policyholders to file a claim, get roadside assistance, access I.D. cards, make payments, review bills, and find agent contact information. The app has a 4.8-star rating and 7,800 reviews.
Farmers Android App
Farmers app provides all the same features as the iOS version but has a 4.7-star rating and over 5,900 reviews.
Progressive and Farmers are both excellent insurance companies with great customer support. Regarding insurance prices, Progressive takes the lead, but Farmers catches up with customer service. In addition, Farmers insurance has a better accident forgiveness deal.
Through this review, we have determined that Progressive wins the Progressive vs. Farmers battle. However, at the end of the day, it’s your personal decision.
Sometimes, you might not qualify for Progressive insurance, and you’ll have to find another company. In that case, Farmers insurance is better than most unreasonably expensive car insurance because it offers cheaper rates and better payment plans. Perhaps this is because Farmers insurance has a legacy of 100 years and a loyal customer base.