Who is Cheaper - Geico or Progressive?
When it comes to car insurance, two of the biggest names in the industry are Geico and Progressive. Both companies aggressively market themselves as providing affordable coverage, but who actually offers the cheaper rates - Geico or Progressive? There are several factors that determine how much you'll pay and the best company can vary depending on your situation. This guide examines Geico and Progressive's pricing, discounts, and claims processes to help you find the most cost-effective option for your needs.
Key Factors in Cost of Coverage
While Geico and Progressive feature low rates, several elements impact how much you actually pay. Understanding these key factors can help you determine which insurer likely offers you cheaper rates.
- Driver Profiles - Details like your age, gender, marital status, and driving history play a significant role in rates. Each company uses different formulas in their pricing models.
- Vehicle - The car you drive, including make, model, year, safety features, and repair costs also influence your premiums.
- Coverage Limits - Higher liability, collision, comprehensive, and other limits mean higher overall premiums. The level you choose changes costs.
- Deductibles - Selecting a higher deductible leads to cheaper rates overall. Compare options at various deductibles.
- Discounts - The more discounts you quality for the less you pay. Geico and Progressive offer common and unique ways to lower premiums.
- Location - Where you live plays a part in pricing. Insurance costs more in higher risk areas and states.
Now that we’ve reviewed the major elements that affect premium costs, let’s compare Geico and Progressive on these key metrics.
Driver Profiles and Risk Analysis
Both Geico and Progressive take similar factors into account when evaluating a driver's risk profile including age, gender, driving history, credit score in some states, and other details. However, the weight and formulas they use to calculate your rates based on these criteria can differ.
For example, while a DUI conviction will raise your rates at both insurers, Geico may increase the rate by 28% while Progressive's bump is only 18%. For young drivers, Progressive tends to be more forgiving on limited driving experience than Geico. Geico often offers lower prices to older drivers with excellent records versus Progressive providing discounts for a wider range of ages and accident histories.
In general, Geico has a reputation for approving higher risk drivers that Progressive turns down. But Progressive's model may work out cheaper for drivers with marks on their records. Comparing quotes directly is the best way to see which provides the most savings and gets you approved.
Vehicle Rates and Discounts
The vehicle you drive impacts insurance costs in a couple key ways. Performance cars, expensive vehicles, hybrid/electric cars, and cars expensive to repair mean higher rates. But Geico and Progressive also offer numerous auto-related discounts:
- Multi-car discount - For insuring more than one car with them
- Low mileage discount - Driving less than a specified limit
- Defensive driver - For completing an approved safe driving course
- Vehicle safety features - For air bags, anti-lock brakes and more
The biggest differentiation is Geico typically offers bigger percentage discounts, especially for equipment like air bags or anti-theft devices. However, Progressive provides discounts for a wider range of safety and tech features. When evaluating rates, make sure to inquire about all possible vehicle-related savings.
Coverage Limits and Deductibles
How much insurance you buy plays a leading role in determining overall costs. Both Geico and Progressive allow you to customize coverage by adjusting major elements like:
- Liability limits - Dictates how much injury and damage you can cause other parties
- Collision and comprehensive deductibles - Your out-of-pocket costs before insurance kicks in
- Uninsured motorist coverage
- Roadside assistance
- Rental reimbursement
In most cases, Geico provides cheaper rates at lower liability limits like 50/100/50 or 100/300/100. However, Progressive can compete and sometimes offers lower premiums at higher limits.
When choosing deductibles, Progressive sometimes has an advantage at lower deductibles while Geico pulls ahead at higher deductibles. Though cost differential is often minor.
In general, Geico offers slightly discounted rates on ancillary coverage like roadside assistance and rental reimbursement. Thoughadded coverage costs are generally low anyway.
Comparing quotes directly while adjusting these variables is the best way to find where each insurer offers savings.
Discounts
Beyond vehicle-related discounts, Geico and Progressive provide many ways to lower premiums through various incentives and rewards programs:
Common Discounts:
- Multi-policy - For bundling home/auto
- Good driver - For a clean driving record
- Good student - For high-GPA students
- Advance shopper - For getting a quote before your policy renews or starts
- Paperless documents - For electronic documents
Geico Specific:
- Federal employee - If you work directly for government
- Emergency deployment - For active military sent overseas
Progressive Unique:
- Continuous insurance - No lapse in prior coverage
- Pay in full - For paying 6 months upfront
- Multiple driver - If multiple drivers share the car
The key takeaway is Geico offers a few more common discounts with chances for higher percentages. However, their list is largely promotional based while Progressive focuses on liability and tenure factors under your control.
If you fall into Geico's demographic, you likely can stack more discounts there for extra savings. Otherwise, Progressive may offer similar or better prices for the general consumer.
Location and Availability by State
Geico and Progressive both operate nationally; however, pricing and availability varies significantly by location. Geico tends to dominate in most Southern states while Progressive leads in the North.
The easiest way to determine which offers cheaper rates for your area comes down to getting quotes. But analyzing typical premium costs by state can give an indication of competitive advantage by geography.
Here are a few state-by-state comparisons:
- California - Progressive cheaper by $68 a year on average
- Texas - Geico cheaper by $52 a year on average
- New York - Extremely close, Geico cheaper by less than $10 a year
- Florida - Geico cheaper by $64 a year on average
- Illinois - Progressive cheaper by $24 a year on average
Based on average rates paid, Geico appears cheaper across more states. Though cost differential is often within a few dollars either way. Local variations between cities and qualifying for discounts specific to each company can quickly shift the scales.
Claims Process and Customer Satisfaction
Although cost drives many insurance decisions, it’s also important to consider customer service and claims handling. Even a cheaper policy is not worth the headache if you ever need to use it.
Both Geico and Progressive perform well in national customer service rankings and score above average in satisfaction compared to competitors. Each company offers 24/7 support along with a mature digital experience.
However, in virtually all research and surveys, customers rank Geico higher in overall satisfaction with claims handling and interactions with adjusters. Although, Progressive still performs well.
Key metrics from major industry studies:
- J.D. Power Claims Satisfaction Study - Geico 881 / Progressive 866
- Consumer Reports Customer Satisfaction - Geico 89 / Progressive 88
- NAIC Complaint Index - Geico .66 / Progressive .67
While differences are modest in official rankings, individual claims experiences can vary. Online reviews highlight Geico's faster payments and settlements as a primary advantage. Though keep in mind, Progressive's Snapshot tool that bases rates on actual driving data attracts mostly positive reviews.
So Who Offers Cheaper Rates Overall - Geico or Progressive?
When considering all the above factors together, Geico consistently offers slightly lower premiums on average compared to Progressive based on industry rate analysis. However, cost differential is often negligible within a couple dollars per month.
For any given driver, getting quotes from both insurers is the only way to determine the cheapest option for you. Discounts you qualify for and variance in proprietary risk models could make Progressive cheaper depending on your situation. But on average across all consumer profiles, Geico appears to maintain a modest pricing advantage.
To summarize key strengths of each company:
Geico Benefits:
- Broader eligibility - Will approve more at-risk drivers
- Superior discounts - Percentages especially on safety features
- Cheaper rates in most states - Particularly in the South
- Higher customer satisfaction - Better claims handling
Progressive Advantages:
- Specialized packages - Usage-based Snapshot policies
- Competitive technology - Name Your Price tool
- Cheaper in some states - Superior pricing in parts of North
- Strong financial strength - Consistently top ratings
While Geico pulls ahead nationally, make sure to get quotes from both insurers when shopping for a new or renewed policy. And consider the entire picture - not just monthly costs but discounts available to you, the flexibility of programs, and insurer reputation. With just a little legwork to compare options, you’ll be confident knowing you selected the best value.
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