How Can Geico Beat Progressive by Almost 40%?!?!?

timamr

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I use a local agent at an insurance place that is a friend of mine for my auto insurance. Been paying $139/month for about 2 years for Progressive and figured with my clean record I was paying to much so...... i went online to Geico, got a quote for $87/month. Thought it to good to be true so I called Geico AND my local agent and made sure I had the same exact coverage (ie:collison, PIP, medical, etc). My local hometown agent knew he was beat. How is that possible?
 
I use a local agent at an insurance place that is a friend of mine for my auto insurance. Been paying $139/month for about 2 years for Progressive and figured with my clean record I was paying to much so...... i went online to Geico, got a quote for $87/month. Thought it to good to be true so I called Geico AND my local agent and made sure I had the same exact coverage (ie:collison, PIP, medical, etc). My local hometown agent knew he was beat. How is that possible?

Progressive and GECIO although similar taste in clientele have different underwriting factors that determine their rates. There are too many to even list why GECIO might be so much cheaper but here are a few ideas..

1) you purchased Progressive at a time when you didn't have current insurance. Progressive and other carriers will penalize you for that. Now that you've been insured for two years and have a clean record you are more desirable to an insurance company

2) your credit or life circumstances may have changed. Credit is a big role in insurance and if it improves likely will your rate. Also if you became a homeowner, got married, getting older, or have had other life changes you may now be more desirable.

3) GECIO could be trying to buy up marketshare in your area. When an insurance company wants to grow in a particular part of the country they come in with super low rates, attract clients, then eventually raise their rates to normal levels for that territory.

My advice is to keep shopping. If GECIO is willing to come in that low you may be able to find a better carrier that is willing to do the same. GECIO doesn't follow tradition auto coverage form like the "good" carriers do which can leave you with some gaps in coverage.

Where are you located ?
 
sounds like your current agent is an independent. Have him quote your auto with some of his other carriers or find another independent agent and have them do it. Prior insurance with good credit and no tickets its easy to beat progressive.
 
Like any carrier, I have seen situations where GEICO is untouchable. I've also seen that with some of mine as well. If your IA can't beat that rate then you're that unique situation where GEICO is priced very well.

Since they have high turnover, you may be speaking to some tribal person w/ a bone in their lip riding an elephant in Mumbai while doing your quote so they understandibly may be doing it wrong & your rate will change after underwriting gets their hand on it.
 
I had a client with Geico for over 40 years. Clean record, excellent credit. I was able to beat Geico with Safeco. The new clients get the better rates.
 
While I'd like to agree with you here, I just can't. Their claims service has a great reputation and I'm an IA....

I feel like when it comes to auto a majority of companies are pretty good on claims. Geico is no better or worse then most of the traditional IA carries.
Its the home claims that are a pain in the butt.
 
Is it possible that company's like geico who went to direct online sales able to give lower rates because in case of direct sale there is no agents commission?
Local agents and brokers get their leads from that insurer only if direct sale didn't happened, right? Does anyone in the marketing chain gets commissions from direct online sale on official website?
 
I use a local agent at an insurance place that is a friend of mine for my auto insurance. Been paying $139/month for about 2 years for Progressive and figured with my clean record I was paying to much so...... i went online to Geico, got a quote for $87/month. Thought it to good to be true so I called Geico AND my local agent and made sure I had the same exact coverage (ie:collison, PIP, medical, etc). My local hometown agent knew he was beat. How is that possible?

They are working the market that way. In the last decade there were times when State Farm would be on the list of the most competitive, then it was Allstate, for a short time it was Mercury, for about 2 years it was Infiniti, but for some years its has been Geico. They do this to build a strong book of business and gamble on the number of claims that might arise. I am an IA and I am insured with Geico. Many of of clients start with is and then leave with Geico once they have Prior. But we will just have to see where they will be in a few years because many times they underestimate the PIP fraud and increase in phone distractions that is arising at this moment in the P&C world.

WIth that said they aren't always on top. I have taken some of their clients. but it's common. again, it's just how they are playing the market right now.
 
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