Progressive vs State Farm: Who has better car insurance?
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UPDATED: Mar 18, 2021
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When you’re considering Progressive vs. State Farm vehicle insurance, keep in mind that both are industry-leading insurance providers with stellar reputations, who have been servicing drivers for many years.
Progressive was founded in 1937 and has made innovation the center of its services for more than 80 years.
Recognizable for its Name Your Price tool and insurance maven Flo, Progressive continues to look for ways to provide insurance to benefit its customers.
State Farm shares an equally impressive and lengthy history, servicing 44 million auto policies with its iconic promise that “like a good neighbor, State Farm is there.”
The organization was founded just 15 years before Progressive, in 1922, and ranks 33rd on the Fortune 500 list of American companies.
Many different factors comprise auto insurance policies, and companies provide quotes in many ways, from bundling various types of coverage to allowing consumers to choose from an a la carte menu of services.
When you obtain a quote from each company, make a full side-by-side comparison to see how protection levels for each coverage type compare financially.
Then we sorted the information into four basic categories: coverage and benefits, pricing and discounts, financial strength, and customer experience.
Comparing Progressive vs. State Farm’s Car Insurance
When it comes to the basic coverage types for automobile insurance, consumers will find that State Farm covers all the bases for legal mandates, as well as the additional coverage lenders may require for financed vehicles; whereas Progressive goes a little beyond, offering extra coverage choices that consumers may find attractive for enhanced protection.
Looking at coverage comparisons for Progressive and State Farm, we find that both organizations offer the bodily injury liability and property damage liability coverage that is a legal requirement in most of the 50 states, plus the additional uninsured/underinsured motorist policies required by some states.
Most automobile financing organizations also require borrowers to carry collision and comprehensive insurance.
If you’re involved in an accident, are subject to the forces of nature, or some other unforeseen event, these products make sure that the damages to your insured vehicle can be addressed.
State Farm and Progressive also both offer medical payment coverage for the driver and passengers of the insured vehicle to help limit expenses should injuries occur.
Depending on your vehicle and imposed requirements, you can determine which level of coverage is best for you.
Progressive goes a step beyond by providing personal injury protection (PIP). Similar to medical payment coverage, personal injury protection offers no-fault coverage for injuries experienced by the driver or passengers of the insured vehicle no matter the reason or fault for those injuries.
This can be especially important if struck by an uninsured motorist or involved in a hit-and-run accident.
Additional coverage levels are also available from both State Farm and Progressive.
Both organizations offer coverage for towing and labor in the event of a damaged or stranded vehicle, as well as rental reimbursements if insured motorists will be without their cars for some time. Progressive again goes a step further with optional coverage choices by providing protection for the car’s sound system, as well as vet bills if an animal in the vehicle becomes injured during an accident.
What Do Their Customers Think?
As you compare Progressive vs. State Farm, seeing how customers experience service from either company should factor just as highly into your decision-making process as their coverage availability and costs.
You’ll likely interact with your chosen insurance company not only when you make payments and renew your coverage, but also to file claims when necessary due to damage or accidents.
Understanding how others rank different insurance carriers can help you to make the best choice for your own coverage.
In the 2017 J.D. Power U.S. Auto Claims Satisfaction Study, both State Farm and Progressive rank similarly across the seven surveyed areas. And, despite being industry-leading agencies, both insurance companies rank squarely in the middle.
Both State Farm and Progressive were awarded 3 out of 5 stars in the first three surveyed factors of Overall Satisfaction, First Notice of Loss, and Claim Servicing.
In the fourth, Estimation Process, State Farm rated 4 stars to Progressive’s 3 stars. For Repair Process and Settlement, each garnered 3 of 5 stars, while Progressive led State Farm 4 stars to 3 in the Rental Experience results.
|Overall Satisfaction||Satisfaction with Initial Claims Reporting Process||Satisfaction with Representative Handling the Claim||Satisfaction with the Repair Process||Satisfaction with the Rental Car Process|
|Progressive||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||4 out of 5 stars|
|State Farm||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars|
J.D. Power uses three key performance indicator (KPI) categories to determine the influence of certain areas on customer satisfaction, including communication, service interaction, and timeliness. Every customer and claim has a different experience, so satisfaction scores are made up of many different elements.
Additionally, as giant insurance carriers, Progressive and State Farm insure more individuals, and that leads to statistical results across a broader spectrum.
When we compare Progressive vs. State Farm, both companies score in the lower-to-middle end of the results for the J.D. Power Auto Insurance Study on Overall Satisfaction, policy offerings, price, billing process and policy information, interaction, and claims in California, earning 3 of 5 stars in each category in that region.
- In Florida, Progressive bests State Farm with 3 of 5 stars in all but Claims, where it earned 2 of 5 stars. By comparison, State Farm rated just 2 of 5 stars in each category in Florida.
- In New York, the companies again essentially tied with 2- or 3-star ratings in each category. In every region, brands with just as much name power, such as Allstate, USAA, and MetLife, performed better than Progressive and State Farm.
J.D. Power’s Insurance Shopping Study compared Progressive and State Farm, as well as other major insurance retailers, in areas including Overall Satisfaction, Policy Offerings, Pricing, Local Agents, Call Center Reps, and Website. As with previous results, Progressive and State Farm both received solidly average 3-star or slightly below average 2-star results near the bottom of the surveyed companies.
The National Association of Insurance Commissioners (NAIC) compiles the number of complaints lodged against insurance companies.
As enormous entities, Progressive and State Farm operate under a number of subsidiary names depending on the state or region. With the national median ratio set at 1.00, you can see that both companies scored higher than average.
However, Progressive was much closer with a 1.11, and State Farm had more than double the ratio with a 2.58, which reflects the 9,444 complaints in 2016.
In the California Consumer Complaint Study for 2017, Progressive is again entered as many different subsidiary entities, that add up to 36 complaints in that state in 2016, as opposed to State Farm’s 120 complaints.
However, that’s relative to the 639,233 policies Progressive issued in the state versus State Farm’s 3,852,920, giving State Farm fewer complaints per person, overall.
Comparing Financial Strength
The financial strength and stability of an organization should also play into your decision-making process because it may impact how quickly and adequately your needs are met in the event of a large-scale disaster.
Several organizations evaluate the financial strength of insurance companies, including A.M. Best, Moody, Fitch, Kroll Bond Rating Agency, and Standard and Poor’s.
Progressive Insurance has earned an A from A.M. Best, A2 from Moody’s, and A from S&P–essentially highest or very high ratings from each service. Comparatively, State Farm earned an A++ from A.M. Best and an AA from S&P.
With each company earning very high marks from financial rating agencies, consumers should feel comfortable that either entity will treat their insurance premiums responsibly and respond appropriately in the customer’s time of need.
Pricing and Discounts
Many different factors play into the costs that consumers pay for their automobile insurance policies, from the type of car to their driving record, to what other insurance types they carry.
Most companies offer discounts for good habits and safe driving histories, which can considerably help lower the cost of insurance premiums.
When you compare Progressive vs. State Farm in terms of discounts offered, which vary slightly by state, Progressive has the edge, with greater savings for its prospective insured drivers and for any others who drive their vehicles.
This doesn’t necessarily mean that they offer the lowest rates, however, as base rates before discounts also vary by state and between carriers.
|Snapshot Monitoring (P) / Drive Safe & Save (SF)||Yes||Yes|
|Safe Driver Discount||Yes||Yes|
|Vehicle Safety Features Discounts||Yes||Yes|
|Sign Online Discount||Yes||No|
|Teen Driver Discount||Yes||No|
|Student Away at School Discount||No||Yes|
|Good Student Discount||Yes||Yes|
|Inexperienced Driver Education Discount||No||Yes|
|Driver Improvement/Defensive Driving Discount||No||Yes|
|Pay in Full Discount||Yes||Yes|
|Automatic Payment Discount||Yes||Yes|
Get Your Rates Quote Now
If you’re deciding between State Farm vs. Progressive for your auto insurance policy, it’s important to spend adequate time thoroughly researching both organizations and the types of coverage they provide, in order to get the best insurance for your needs.