What is Progressive and How Do You Compete Against Them ?

squeed · 03-21-2009, 08:07 AM

Those progressive commercials are great. It looks like there are a huge one stop shop, independent agent.

Is that what they are ?

How often do you bump up against them and is it difficult to compete ? My guess is NO, if they are an independent, because if you are also, then they're able to provide the same stuff as you ?

-S

SCLady · 03-21-2009, 09:07 AM

Agents who sell for Progressive are independent agents. You cannot sell Progressive and work from home. They are not always competitive.

Newby · 03-21-2009, 10:04 AM

Originally Posted by squeed

Those progressive commercials are great. It looks like there are a huge one stop shop, independent agent.

Is that what they are ?

How often do you bump up against them and is it difficult to compete ? My guess is NO, if they are an independent, because if you are also, then they're able to provide the same stuff as you ?

-S

Squeed, it sounds like you have bought into Progressive's advertising hook line and sinker. What makes you think they are hard to compete with?

I don't know anything about P & C so I don't know if Progressive is high low or in the middle. But I do know that they spend a LOT of money on TV advertising and that usually doesn't come free.

SoCalBroker · 03-21-2009, 10:36 AM

They write Direct to the Consumer through their website, AND through the Independent Agency System.

I rarely come up against them in CA on anything other than Non Standard or distressed auto or other uninformed consumers who have bought off the TV Marketing Hype.

In CA they are very uncompetitive and typically get adversely selected against by most agents. The mantra is ... if your going to try and compete against us - we'll just send you all our CRAP business - thats hard to place with poor records or that no one else wants.

I Fear NO 800 # or Geckos nor Cave-Geeks ...

soupdawg · 03-21-2009, 10:44 AM

Progressive is one of many great companies. For the independent agency they have little paperwork, excellent claims and customer service and fair commissions. They have recently changed this, the more you produce the more you can make. Also, they have come out with new rates for their preferred company and those rates are excellent. Progressive has partnered with a few homeowners companies to offer homeowner's insurance as well. And yes you can sell Progressive, Safeco, and a few other companies from anywhere, you home included.

SCLady · 03-21-2009, 06:21 PM

Originally Posted by soupdawg

And yes you can sell Progressive, Safeco, and a few other companies from anywhere, you home included.

I apologize if I provided incorrect information. It must be state-specific, then. In SC Progressive does not allow home-based agencies since they want the client to be able to walk into your office if they choose to, and they don't want that office to be your home.

They are extremely easy to deal with, and, just like other carriers, can be competitive or not-competitive depending upon the client and the state.

stuartmoore10 · 03-22-2009, 12:46 AM

Progressive is a good company. Although not always competitive. You have to know who they cater too.

They are great for younger people with few speeding tickets but nothing else.

They do spend a ton of money on advertising and that is the reason for the somewhat higher premiums. The main thing I don't like is that if you go directly to their website, most people can get it for cheaper. Its like why do you want us to write for you if you have all these commercials wanting people to come directly to your website.

Perfect example:

I had a quote come from Net Quote. I ran the numbers through and Progressive came out the best. I think it was something around $600 for 6 months. I sent the guy an email with the quote, his reply was, "Went directly to Progressive and got it for $500, try another sucker."

Newby · 03-22-2009, 08:47 AM

Originally Posted by stuartmoore10

Progressive is a good company. Although not always competitive. You have to know who they cater too.

They are great for younger people with few speeding tickets but nothing else.

They do spend a ton of money on advertising and that is the reason for the somewhat higher premiums. The main thing I don't like is that if you go directly to their website, most people can get it for cheaper. Its like why do you want us to write for you if you have all these commercials wanting people to come directly to your website.

Perfect example:

I had a quote come from Net Quote. I ran the numbers through and Progressive came out the best. I think it was something around $600 for 6 months. I sent the guy an email with the quote, his reply was, "Went directly to Progressive and got it for $500, try another sucker."

That makes Progressive a RAT compay. I would make it my life's mission to find their customers better deals with other companies and ONLY leave them with the garbage.

SCLady · 03-22-2009, 09:02 AM

Originally Posted by Newby

That makes Progressive a RAT compay. I would make it my life's mission to find their customers better deals with other companies and ONLY leave them with the garbage.

Not necessarily. From my understanding, ever since Progressive was sued (and lost) back in the 1990s for allowing different rate structures for the same person, they no longer do that. It could have been that the customer received less coverage, more discounts, etc which brought the rate down.

PDX_Agent · 04-22-2009, 01:19 PM

Try this, quote yourself with an Independent Agent through progressive and then directly on the progressive.com site. The two prices will be different, even with exact same coverage.

Progressive is a growth carrier, they routinely grow thier book, but it costs them alot of money for TV advertising. That is the way they have decided to grow.

They pay Independent Agents the least of any non-captive Auto carrier that I know, around 10% new 8% renew. For agents that have a good PIF count and grow 10-25% a year, they offer a contingency bonus. For my 2007 book with them, I made an extra 1-2% commission after I amortize it out over the year.

Personally I am tired of working for others and just started my own company up. I will be working part tiem from my home at first but I am only appointing carriers that pay 15% new and at least 10-12% renewal and allow me to bundle home/auto. Word of mouth advertising is the best for retention and I am only going to allow paid in full premium or autopay, no payments.

1manshow · 04-22-2009, 02:33 PM

I agree with the statement "rat company"..... when progressive finds a way to steal the IA's book without paying for it.....consider it done... therefore, we give them all the crap business...... and they still seem to make a profit on it

Great technology...zero loyalty=Progressive

Quote · 04-22-2009, 03:35 PM

That really sucks that they offer direct consumers a better price. It should be the same or a little lower for the independent agent.

stuartmoore10 · 04-22-2009, 06:51 PM

I recently did a quote for a guy. Progressive came out the best. I told the customer that and did not hear from him for around a week. Sent him a follow up email and his response was, "Yes, I did use Progressive like you said. Thanks"

Guess I shouldn't have told him Progressive was the best. That is what makes me mad about them. If a customer goes dircectly to them, it is a lot easier for the customer. Either let independent agents sell your product, or don't!

Norwayguy · 04-22-2009, 07:01 PM

Originally Posted by stuartmoore10

I recently did a quote for a guy. Progressive came out the best. I told the customer that and did not hear from him for around a week. Sent him a follow up email and his response was, "Yes, I did use Progressive like you said. Thanks"

Guess I shouldn't have told him Progressive was the best. That is what makes me mad about them. If a customer goes dircectly to them, it is a lot easier for the customer. Either let independent agents sell your product, or don't!

I don't sell P&C...but sell Life insurance and the problem is similar. If you tell the client the cost and the company name they no longer need you...Anyone that can offer that product that reachs them afterward can sell it...I tell the client I am getting a lot of good rates from companies such as Pru, ING, AM Gen, SBLI etc...I tell them the best option for them is $x but I don't tell them the company I ask if that is within there budget if yes I move on to filling out the app...If I can't move them then somethings holding them back and for some people even telling them you offer all the major companies some people will still wait for more quotes so in my sceneraio at least I didn't say the lowest rate for you is $12/month with SBLI so that when they speak with the next agent they don't say can you beat $12/month I was told SBLI was the best rate and the agent says actually I represent many companies including SBLI and based on your situation they are the best fit why don't I get that taken care of for you....Do you think the client is going to say no let me call this other guy back...He didn't even take your phone number down..

You need to find a way to provide them enough info to make the decision without making the sale for the next agent just in case you can't close them on the first call.

Soaringagent · 04-25-2009, 08:29 PM

Good tips. Thanks for the info.

Gulliver · 06-03-2009, 10:58 PM

Good Company for the Consumer

Peaks and Valleys for the Agent (see below)

Good:

Name Recognition
Technology
Customer Service
Claims

Bad

Lowest Commissions 10% NB most states
Direct selling at lower prices than agents can sell
Arrogant
Prefer to do business direct vs Agency

Gulliver

B Ray · 06-03-2009, 11:09 PM

I work for american national, I love the commercial " we have they best motorcycle rates" we beat them by 35 % on the quote. I seem to find on autos, it's more of the high risk drivers that go there, more claims and violations, not always but seems more in my area.

anteater · 06-12-2009, 02:43 PM

Originally Posted by stuartmoore10

...
I had a quote come from Net Quote. I ran the numbers through and Progressive came out the best. I think it was something around $600 for 6 months. I sent the guy an email with the quote, his reply was, "Went directly to Progressive and got it for $500, try another sucker."

Car Insurance Prices: Insurance Rates - Progressive

They're making it sound like sometimes the agents rates are lower than the customer can get direct on the website, and sometimes not. I wonder if that's ever true in practice.

EFLTEACHER · 06-15-2009, 06:13 PM

Originally Posted by SCLady

Agents who sell for Progressive are independent agents. You cannot sell Progressive and work from home. They are not always competitive.

Which companies can I write from home?

djs · 06-15-2009, 07:50 PM

Originally Posted by anteater

Car Insurance Prices: Insurance Rates - Progressive

They're making it sound like sometimes the agents rates are lower than the customer can get direct on the website, and sometimes not. I wonder if that's ever true in practice.

That article is humorous. They make it sound like the agent decides what rate they will charge. They say:

Since the Direct Business and the Agency Business make independent decisions about the expenses they incur and the prices of their products, buying direct or through an agent could result in different prices for Progressive policies.

I guess they are referring to broker fees. Not sure, but then, I don't know any place that still charges broker fees.

Dan