How my experience doubled my suspicions about Progressive’s Competitor Comparison feature.

Flo May Have Had Too Much Caffeine

I don’t know about you, but whenever a company gives me competitor prices, I’m guarded. Think about it. If you go to a Target to buy some Frosted Flakes, they’re priced at $2.99 a box. Right underneath the tag, you also see Walmart’s price at $3.50 – doesn’t it make you wonder? Maybe the comparison shopper snuck into Wally World a few months back, or maybe they never went at all. Regardless, I usually don’t trust companies’ comparison prices.

That’s why I’ve been cynical about Progressive’s claims. If I get a Progressive auto insurance quote for $600, then I get a GEICO price from Progressive for $500, why would I buy from Progressive? What motivation does Progressive have for showing a lower price? In addition, as a former Agent, I know Progressive is not privy to GEICOs or anybody else’s proprietary underwriting guidelines. They could backward-engineer it to an extent, but it won’t be completely accurate.

Still, it doesn’t stop Progressive from advertising about it.

Progressive Price Comparison Commercial

My Experience With Progressive’s Competitive Comparison

In my investigative journalism-mode, I hopped over to Progressive’s site (writing April 2009). Once again, I was impressed with their interface. Of all the online auto quote systems I’ve used, Progressive’s website has been the most impressive. It’s quick and easy to navigate. I got another auto insurance quote within minutes of filling out the form.

But I didn’t care about a quote this time. I wanted to know about competitor quotes. After all, I had just finished shopping my rates a few months back. I knew the ballpark estimates from other companies. Would Progressive’s supposed comparison price even be close to State Farm’s, Allstate’s, or GEICO’s? I was still doubtful.

After getting my quote, I noticed a small box off to the right side of the page: “Compare Auto Rates”. I clicked on it, and followed the directions for competitor rate quotes. Lo and behold, this is what Progressive wrote…

Progressive’s Apology

We apologize, but we cannot provide comparison rates for your situation.

Our goal is to provide accurate comparison rates, which are based on rates other companies publicly file in your state. We are unsure what certain companies may charge you for the following situation(s):

* One of your vehicles is not listed in a company’s rate filing.

* We cannot provide a rate for your most recent insurance company since your renewal rate is often different than the rate offered to new customers.

* Comparison rates for which you may qualify are currently being updated in our system.

Please contact other companies directly to find the rates that apply to you.

This single negative experience did nothing to bolster my confidence in Progressive’s competitor comparison feature. Maybe it works 99% of the time. However, it happened to be broken the one time a consumer car insurance website came calling. Sure, one negative experience shouldn’t taint an entire company, but it usually does. Maybe I should follow Progressive’s advice and contact another company for a quote.

If you have any experience with Progressive’s quote comparisons, feel free to leave a comment.

Paying too much for auto insurance? Find out the average car insurance rates across the country.

Average Car Insurance Rates Vary

Is there such a thing as average car insurance rates? According to NAIC in 2006, the average car insurance premium in the state of New Jersey was $1152 while the average cost in Maine was $634. That’s an 81.7% difference – big money when you’re buying a policy every year. According to that same study, average car insurance premiums across the nation were $817, which still makes New Jersey’s average car insurance rates ridiculously high.

We also compiled some average car insurance rates below – more on that later. For now, the better answer to the question about average car insurance rates is that it all depends.

Auto Insurance Rates Depend On Your Location

As you may have guessed, auto insurance rates depend on your state of residence. As we have already talked about the average car insurance premium in New Jersey is notoriously high. Historically, insurance regulations in New Jersey are strict. In some cases, regulators have encouraged some companies to leave, decreasing competition, and thereby driving premiums even higher. Still, as high as New Jersey rates are, they’re usually more in Washington, D.C.

In addition, the average car insurance rates in a city, will be more than the average car insurance rates on a farm. Because, insurance companies base their prices on risk, city-dwellers pay more. It’s more likely for bad things to happen to your car in a city than driving to and from the convenient store in Podunk, USA.  

Average Car Insurance Rates Depend On Your Driving History

For those that have a not-so-stellar driving history, insurance companies will reward them with not-so-stellar average car insurance rates. Drivers with clean/clean records earn cheaper premiums. Clean/clean is insurance-speak for no accidents and no tickets. If you drive without accidents or tickets for three years, in most cases insurers won’t count your old record against you. There are definite exceptions to the rule like DUIs.

 Average Car InsuranceRates Depend On Your Age and Sex

Like it or not, younger drivers carry more risk than older, more experienced drivers. As such, drivers under 25 usually pay more for their car insurance policy than drivers over 25. If you’re under 25 right now, don’t worry, it’ll be here before you know it.

In addition, the average car insurance rates for younger female drivers are often less than their male counterparts. Research shows younger males are more aggressive drivers, often having more accidents than females in the same age bracket. That’s why insurance companies charge higher premiums for young male drivers. 

Average Car Insurance Rates Revealed

As for average car insurance rates, we compiled a list of rates from several states. Although they’re not definitive lists, it’s a helpful tool for comparing rates at different companies in a few different states.

It’s better to compare your current premium to a few other companies directly. Make sure you get several quotes before you settle on a policy. You may not know the exact average car insurance rates, but you’ll find out if you’re getting ripped off by your current insurer.

Was this article on average car insurance helpful? Let me know what I missed!