Posts Tagged ‘Progressive auto insurance’

Is The Cost of Auto Insurance Advertising Driving Up Your Premium?

Thursday, July 5th, 2012

What is it costing your auto insurance provider to advertise each year? SNL Financial set to find out. Geico Corp is the King of auto insurance advertising, data shows, with annual spending of close to $1 billion! This number is up 10 percent from spending in 2010, which shows that insurers are becoming increasingly more competitive for your dollars.

What Are Other Auto Insurers Spending?

State Farm Mutual Automobile Insurance Co. — the largest home and auto insurer in the U.S. — took second place in the advertising war. Geico spent 22 percent more than State Farm last year, but State Farm increased their ad spending by 29 percent — three times’ the rate of Geico’s ad spending increase. Allstate Corp was the third biggest spender at $745.3 million in 2011.

Do Auto Insurance Companies Have To Spend So Much?

Allstate Corp has felt the pain of cutting back during the recession. An internal presentation indicated they had been losing ground with consumer awareness due to reduced TV ad spending in the previous year. They also lost 30 percent of their typical call center volume due to reduced direct-mail solicitations. So, it’s no surprise they ramped up their efforts last year to keep pace with the big dogs.

Does Increased Auto Insurance Advertising Affect Premiums?

Insurance companies are in the business to make money, so you can be sure they are charging you more than enough to cover any accidents and fund their companies’ growth. Research indicates that there has not been a major churn in the industry, despite increased spending. Progressive and Geico are growing, but most insurers aren’t able to grab major market share. On the bright side, 25 percent of auto insurance customers shopped for a new policy last year — and 43 percent of them did end up switching providers. This is the highest switch rate since 2008.

auto insurance

Why not shop around for a deal on your auto insurance here & now?

Progressive Auto Insurance Coverage Discounts

Wednesday, September 21st, 2011

Progressive is a well-established auto insurance company which has been serving its customers’ needs since 1937. The company offers consumers a number of attractive options to help them get the most out of their auto insurance policy.

Name Your Own Price

One of the interesting concepts that Progressive offers to its policyholders is the “Name Your Own Price” feature. A driver who is interested in taking advantage of this feature would start by getting a quote for coverage from the company. If the amount quoted varies from what the driver can afford or is willing to pay for his or her coverage, then the customer lets Progressive know what he or she wants to pay, and the company adjusts the policy so that the customer pays a rate that he or she feels comfortable with.

Snapshot

Snapshot is a usage-based program for existing Progressive policyholders. On request, the company will forward a device, which is plugged in to the policyholder’s car, to the customer. The device remains in place for 30 days and during that time, it records the policyholder’s driving habits. Good drivers who choose this option can save up to 30 percent on the cost of their auto insurance coverage.

The company also offers a number of discounts to customers in various circumstances, including ones for:

  • Good drivers
  • Buying a policy online
  • Multiple policies
  • Multiple vehicles
  • Paying in full