| Progressive Car Insurance Quotes - Same Name Different Rates - Call 1-877-WIZ-AUTO (949-2886) to speak to an agent |
Progressive is an extraordinary car insurance company providing low rates and exemplary service.
They are very easy to do business with and provide several different ways to purchase a policy.
Customers can buy a policy online or over the phone to deal directly with the company, or through an
independent insurance agent to receive advice and additional service from them. These attributes are
well known by most consumers.
What is not so well known is that the price for a policy varies depending on how it is purchased. Each
specific risk will have a different price when an independent agent is used compared to buying directly
from Progressive. It is a common misconception that a policy will always cost more when an agent is
used.
Claims data from prior policies is a primary component insurance companies use when determining
rates for new policies going forward. Progressive separates their data for policies purchased directly
from them and those through independent agents. Also, costs associated with acquiring and servicing
policies is separately determined. Assigning costs to the method by which a policy is purchased enables
Progressive to “fine tune” their rates, providing them a competitive advantage.
The misconception that polices are always higher when purchased through an independent agent
comes about because a sales commission is paid to the agent. Naturally, this expense increases the
cost of a policy. However, the functions performed by the independent agent replaces the work required
by company personnel which has a decreasing effect on a policy. Advertising, a very large expense, is
also taken into account separately. Independent agents incur the expense of promoting themselves,
while the company uses their resources to promote itself. It’s easy to see how the company spends a
bundle to have Flo, the Progressive girl, appear on television over and over again.
The car insurance market place is very competitive, motivating Progressive to change rates frequently
to keep rates as low as possible. Calculating rates according to how the consumer buys a policy helps
keep rates lower overall for a Progressive policy. For consumers, it’s sensible to compare a rate
received directly from Progressive with one available through an independent agent. A policyholder
receives the same great service from Progressive no matter how they purchase a policy.
When receiving a quote from an independent agent, the consumer gains an advantage from the ability
to compare rates and choose from a variety of companies offered by that agent. Also, this advantage
remains available at each renewal interval, providing the opportunity to save money again and again.
One thing independent agents are not able to do is provide the rate that is available directly from
Progressive. To ensure the lowest available rate from Progressive, shoppers need to receive one quote
directly from the Company and compare that with a Progressive quote offered by an independent agent.
Initially, Progressive offered their products exclusively through independent agents. When the Company
began offering policies directly, rates remained the same for each distribution channel. At one time,
they re-branded themselves for the independents with the name “Drive Insurance”. This was short lived
in favor of leveraging the one well known name, Progressive. Experiencing these changes as an
independent agent, I believe the current business model (same name, different rates) provides for the
lowest overall rates with the least confusion.
With a little knowledge and a lot of shopping, consumers can significantly lower their cost for car
insurance. Progressive is just one excellent company among many to purchase from. Receiving quotes
from a variety of companies and through a variety of purchasing methods is the best way to attain a low
cost car insurance policy.
They are very easy to do business with and provide several different ways to purchase a policy.
Customers can buy a policy online or over the phone to deal directly with the company, or through an
independent insurance agent to receive advice and additional service from them. These attributes are
well known by most consumers.
What is not so well known is that the price for a policy varies depending on how it is purchased. Each
specific risk will have a different price when an independent agent is used compared to buying directly
from Progressive. It is a common misconception that a policy will always cost more when an agent is
used.
Claims data from prior policies is a primary component insurance companies use when determining
rates for new policies going forward. Progressive separates their data for policies purchased directly
from them and those through independent agents. Also, costs associated with acquiring and servicing
policies is separately determined. Assigning costs to the method by which a policy is purchased enables
Progressive to “fine tune” their rates, providing them a competitive advantage.
The misconception that polices are always higher when purchased through an independent agent
comes about because a sales commission is paid to the agent. Naturally, this expense increases the
cost of a policy. However, the functions performed by the independent agent replaces the work required
by company personnel which has a decreasing effect on a policy. Advertising, a very large expense, is
also taken into account separately. Independent agents incur the expense of promoting themselves,
while the company uses their resources to promote itself. It’s easy to see how the company spends a
bundle to have Flo, the Progressive girl, appear on television over and over again.
The car insurance market place is very competitive, motivating Progressive to change rates frequently
to keep rates as low as possible. Calculating rates according to how the consumer buys a policy helps
keep rates lower overall for a Progressive policy. For consumers, it’s sensible to compare a rate
received directly from Progressive with one available through an independent agent. A policyholder
receives the same great service from Progressive no matter how they purchase a policy.
When receiving a quote from an independent agent, the consumer gains an advantage from the ability
to compare rates and choose from a variety of companies offered by that agent. Also, this advantage
remains available at each renewal interval, providing the opportunity to save money again and again.
One thing independent agents are not able to do is provide the rate that is available directly from
Progressive. To ensure the lowest available rate from Progressive, shoppers need to receive one quote
directly from the Company and compare that with a Progressive quote offered by an independent agent.
Initially, Progressive offered their products exclusively through independent agents. When the Company
began offering policies directly, rates remained the same for each distribution channel. At one time,
they re-branded themselves for the independents with the name “Drive Insurance”. This was short lived
in favor of leveraging the one well known name, Progressive. Experiencing these changes as an
independent agent, I believe the current business model (same name, different rates) provides for the
lowest overall rates with the least confusion.
With a little knowledge and a lot of shopping, consumers can significantly lower their cost for car
insurance. Progressive is just one excellent company among many to purchase from. Receiving quotes
from a variety of companies and through a variety of purchasing methods is the best way to attain a low
cost car insurance policy.
Florida Auto Plus Insurance Agency
Local map and directions: 9742 Banyan street Miami, Florida 33157
Local map and directions: 9742 Banyan street Miami, Florida 33157