The Beginnings Of Progressive
Jack Green and Joseph Lewis are the founders of this company which is known as Progressive Insurance Company. It was established in 1937 to provide reduced cost insurance to low-risk drivers and expanded its business until it has reached 20 billion USD in 2016.
The company continued to gain popularity in the insurance industry by being innovative. It is the first major insurance company in the United States that:
Has a drive-in claims office
Launched a website
Sold auto insurance policies online in real time
Offers one-stop claims with service centers
Offers a Google home voice application
Launched HomeQuote Explorer, which is a multiple homes quoting platform
Provide a tool called Name Your Price - allows the customers to name their own insurance policy price.
The company is now serving 48 states in the country, with over 19 million policies in force. Indeed, they are one of the largest insurance companies in the United States today.
The company is promising to provide their customers with complete home insurance coverage and offer flexibility to design their own policies based on their needs. Your claims will be efficiently handled by their customer service, so you will get it fast and without any hassle. Their rates are also affordable.
Are Progressive's Claims True?
The company's home insurance policies are affordable and you can get it through their website page but they don't underwrite it because they don't directly sell home insurance policies directly. Their partner, Homesite Insurance, is the one who offers home insurance to Progressive clients. You can just purchase and access the policies through the Progressive's page but you will be talking to Homesite exclusively when you file a claim. They will also be the one to pay for your claims.
Homesite covers most of the major risks and damages that can happen in your home, such as storm damage, fire, and theft. To better protect your valuables and property, you can also customize and increase your policies using their available endorsements. One of the rare endorsements they offer is the Inflation Guard, which will help your coverage to keep up with inflation.
However, when it comes to handling claims, there's a tradeoff. They have received an average rating for their customer service and claims handling, which made their overall ratings low. Some customers complained that customer service isn't responding when they're filing a claim or the company didn't fix or pay the coverage needed for their claims. So, getting your claims fast and without a hassle is not exactly true. However, when it comes to affordable rates and comprehensive home insurance policies, they received stellar reviews.
Progressive Home Insurance Coverage
Progressive’s standard home insurance coverage includes the following:
This coverage will pay any judgments and legal defense to certain lawsuits. The legal defense cost is not included in the coverage limit so it won't reduce your coverage amount.
In the event of covered loss, dwelling coverage pays the rebuild or repair costs of your home.
Additional Living Expenses
If you are temporarily displaced from your home due to a covered loss, the company will pay for your accommodation and dining expenses.
If a visitor gets injured in your property, the insurance policy will pay for their medical care, which is either $1,000 or $5,000.
If the valuables inside your home gets lost or damaged, this will cover the payment to replace those items. However, there's a per-item limit for this coverage, so it’s better to insure your luxury items, such as jewelry, separately.
Shed, workshops, a detached garage, and walkways are some of the home structures covered by this part of the policy. If needed, it can be adjusted above the base coverage.
Progressive's Home Insurance Discounts
You can still get discounts even if home insurance policies are handled exclusively by Homesite. You are more likely to get discounts if you:
Purchase a home and auto insurance bundle.
Get a quote 10 days before your policy starts.
Have safety devices and alarm systems.
Pay your 12-month policy upfront.
Have a new home.
Choose to receive your policy via email.
A.M. Best gave an A+ or a Superior rating to Progressive but this rating was mostly because of their auto insurance services. With their home insurance, A.M. Best gave them an A or Excellent rating, however, Homesite Insurance got the credit for it since it's their home insurance partner. They got a lower rating compared to State Farm and Geico, which is two of their tough competitors in the insurance industry. Both received an A++ rating for their financial strength.
In J.D. Power’s 2018 U.S. Home Insurance Study, Homesite received a low rating on their policy offers, overall customer satisfaction, billing and policy information, interaction, and price, while the ratings about how they handle claims are about average, which shows that when it comes to customer service and claims, they aren't that responsive. JD Power rated Homesite with a 2 (The rest) out of 5 Power Circles. On the other hand, State Farm was rated a 3 (About average) out of 5 rating, with regards to overall customer satisfaction.
To further know if their customer service is really below average in ratings, we also checked Clearsurance’ customer feedbacks and complaints about Progressive. Their home insurance rating is only 4.17 stars out of 5, even if above 50% of the reviews are excellent. This is because of unsatisfied customers who rated them with just 1 or 2 stars, claiming that the representatives were not clear in explaining details of the policies and benefit, why their insurance rates got doubled without making any claims for years. Some reviews also claimed that the process of their claims took months before it became finalized and that they have a bad customer service.
Progressive's Pros and Cons
For the last part of this Progressive home insurance review, we will be summarizing the advantages and disadvantages of this company.
- You will get an Inflation Guard coverage which can't be acquired from most insurance companies.
- You can have extra coverage for your valuables.
- They have a website and mobile applications that can help you get a quote and manage your policies conveniently.
- Progressive has a built-in home comparison tool to compare your rates and choose a budget-friendly coverage.
- Options for their services and policies vary depending on which state you are in.
- Endorsement options are limited.
- Poor customer service reviews online.
- Their policies are underwritten by Homesite and not by Progressive.
- There are only a few discounts.