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Progressive Insurance is making impressive gains in the extremely competitive car insurance market.. Over the past few years, the company has steadily come closer to surpassing its closest rival, GEICO, in auto premium income.
While both companies saw a slight dip in growth due to the COVID-19 pandemic, Progressive held onto its reputation as the fastest-growing car insurance company in the country, as per S&P Global.
The two insurance providers continue to vie for second place in the auto premium race, as they try to catch up with State Farm, the industry leader.
Progressive’s position in the car insurance industry
Progressive Corp. is no stranger to success. According to Case Western Reserve University, it became the third-largest insurance company in 2003, a position it continues to hold today.
Forbes reports that the company has already etched GEICO out in overall insurance market share, and S&P Global’s study shows that the competition for auto premiums has tightened every year since 2018, thanks to Progressive’s growth in the area.
Why Progressive grew faster than its competitors last year
Progressive’s gains on GEICO in 2020 are in part a result of how the companies paid for the support they offered to their private insurance holders during the pandemic.
Both companies offered rebates to their customers, but GEICO’s discounts were taken from their projected premium growth from the year, while Progressive paid for their discounts as a business expense so that the number of premiums it received didn’t change.
Another factor in the race last year might’ve been rate cuts. Over the year, S&P Global says Progressive cut rates in 34 states, while GEICO only cut rates in four states and increased them in 18.
The rate cuts may have encouraged consumers to switch to Progressive for their car insurance.
The auto premiums-race, overall
Factoring in GEICO’s premium losses from the rebates it offered, the company made $33.78 billion, only $1 billion more than Progressive’s $33.17 billion. As per the Insurance Information Institute, the sales give GEICO and Progressive 13.6% and 13.3% of the market share, respectively.
Neither company stands a chance to catch up with State Farm, whose $40.39 billion in premiums written in 2020 gave the company 16.2% of the market share.
Should you switch to Progressive?
Hearing about Progressive’s rate cuts might make you think of switching over to the company for your car insurance. But choosing a provider is a little more complicated than that.
The price of Progressive car insurance changes a lot based on numerous factors. Your age, driving experience, driving record, and the state you live in can all make a big difference.
While the company tends to offer better prices and discounts than their larger competitors like GEICO and State Farm, it’s always smart to shop around so you know you’re getting the best price.
Finding the right car insurance can be a long, difficult process. Jerry makes it quick and easy. After a 45 second signup, you can sit back as Jerry contacts your provider to make sure you have the right coverage and compares prices from up to 50 providers so you know that you’re getting the right price when it comes time to renew your policy.