Auto Insurance: Progressive's Point System And Your Premiums

Progressive car insurance rates are generally below average, but there are a number of factors that can cause your rate to go up. While some factors are within your control, others are not. For example, your rate may increase if you receive a speeding ticket or moving violation, cause an accident, or make comprehensive insurance claims. Similarly, your insurance rate will likely change if you add new vehicles or drivers to your policy or move to a new location. Additionally, insurance rates can increase due to factors outside of your control, such as an increase in the average number of claims in your area or rising repair and replacement costs for vehicles.

Speeding tickets and other moving violations

If you get two or more speeding tickets in three years, you can count on an insurance rate increase. However, if you get your first and only speeding ticket during this period, it may not affect your insurance at all. It depends on how your state and insurer treat the violation, as well as other factors like your insurance company, driving record, insurance history, and in some states, how fast you were travelling when cited.

Insurers don't directly factor points into your car insurance rate, but your rate is likely to increase if you've accumulated a significant amount of points due to the number of violations on your record. For example, in Arizona, three points are added to your license for a speeding violation. If you accumulate eight or more points in 12 months, the state may require you to attend traffic school or suspend your license for up to a year.

The amount your insurance rate may go up after a speeding ticket varies by insurer. Your insurance rate may go up once your policy renews, as insurers typically review your Motor Vehicle Record (MVR) at this time. If your insurer offers a discount for safe driving, you'll likely lose that discount after receiving a speeding ticket.

Speeding tickets may drop off your driving record within three to five years, depending on how long your state keeps violations on record. Most car insurance companies will ask about any speeding tickets you've had over a similar timeframe when you get a quote.

Accidents

The exact amount that your insurance premium will increase after your first accident depends on your insurance company, what state you're in, the extent of the damage, and the circumstances. On average, the cost of car insurance goes up by 48% after your first at-fault accident, or around $348 per year. Not-at-fault accidents will raise your rates by an average of 12%, since filing a claim still costs the insurance company money.

Progressive automatically enrols eligible customers in their accident forgiveness programs. As soon as you become a customer, Progressive won't raise your rates for a small claim of $500 or less. If you've been a customer for five years and accident-free for three consecutive years, Progressive won't raise your rates even if the total claim exceeds $500.

It's worth noting that Progressive's rates tend to be more expensive than competitors for drivers with a speeding ticket or accident on their record.

Comprehensive claims

Comprehensive insurance coverage is an optional coverage that protects your vehicle from damage caused by incidents that are outside of your control. Comprehensive coverage is not a separate type of insurance but rather a specific coverage on an existing policy. Comprehensive insurance covers damage caused by non-collision events, such as theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature. For example, if a tree falls on your car during a storm and causes damage, comprehensive insurance would cover the cost of repairs.

Comprehensive insurance is typically required by lenders if you are leasing or financing your vehicle. If you own your vehicle outright, you can decide whether to purchase comprehensive coverage. The decision to buy comprehensive insurance depends on the value of your car, your personal preferences, and your financial circumstances. For instance, if your car has a high cash value or you cannot afford to repair or replace your vehicle out of pocket, comprehensive coverage could be a good idea.

Comprehensive insurance claims are handled similarly to other types of auto insurance claims. You can file a claim by logging into your policy online, using the mobile app, or by calling the claims center. Progressive representatives will guide you through the claims process and ensure that your repairs are handled efficiently. You can choose to get your repairs completed at one of Progressive's network shop locations or at a repair shop of your choice. Progressive will then manage the repairs from start to finish.

It's important to note that filing a comprehensive insurance claim may result in an increase in your insurance rate when you renew your policy. This is because insurance companies view comprehensive claims as an indication of increased risk, similar to accidents or traffic violations. However, there are also factors outside of your control that can lead to rate increases, such as an increase in claims in your area or higher car repair costs.

Adding vehicles and drivers

Adding a Vehicle

You can add a vehicle to your Progressive insurance policy in several ways. First, you can update your policy online by logging into your account and providing the necessary information. Alternatively, you can call Progressive at 1-866-749-7436 to add a vehicle to your policy.

When adding a vehicle, you will typically need to provide the vehicle identification number (VIN), license plate number, and the vehicle's make and model. Some insurers may also ask about the mileage and condition of the vehicle. It's important to note that Progressive allows you 30 days to transfer your insurance to a new vehicle, and during this period, your new car will be covered to the same extent as your previous vehicle.

You can add vehicles that you own, and in some cases, you may also be able to insure someone else's vehicle if it is kept at your residence and the owner lives with you. This typically applies when you share a car insurance policy with someone, such as a spouse or roommate.

Adding a Driver

Adding a driver to your Progressive insurance policy can be done by calling Progressive or logging into your account online. When adding a driver, you will need to provide their name, date of birth, driving history, license information, and their vehicle identification number (VIN) if you plan to share a policy covering both your vehicles.

It is important to add any regular drivers of your car to your insurance policy. This includes any drivers who live at your permanent address, as most insurance companies require this. Additionally, consider adding teenage children or college students who have a valid driver's license or permit and drive your car regularly.

The cost of adding a driver to your policy will vary based on factors such as their age and driving record. Adding a driver with a history of insurance claims and traffic violations may increase the cost of your policy. On the other hand, adding a teen driver or a good student may qualify you for a discount.

Changes of address

If you're moving to a new address, you'll need to update your car insurance policy. The process for doing this depends on whether you're moving within the same state or out of state.

Moving within the same state

If you're moving within the same state, you don't need to get a new insurance policy. However, you must notify your car insurer of your new address. If you have a Progressive policy, you can update your address online or over the phone.

Moving out of state

If you're moving out of state, you'll need to get a new car insurance policy, even if you can stay with the same insurer. This is because every state has different coverage requirements and regulations. To update your Progressive insurance when moving out of state, follow these steps:

• Contact your current insurance agent or company to verify whether they offer auto insurance in your new home state. If they don't, ask friends what insurance company they recommend for your new area.
• Learn about the insurance requirements in your new state. Insurance laws and requirements vary by state, so your new policy may include additional coverages you didn't have before.
• Buy a new auto insurance policy. After comparing prices and coverages, choose your new car insurance company and purchase a policy.
• Cancel your old policy. Once you've purchased a new policy, contact your insurance company and cancel your old policy. If you're staying with the same insurer, they should automatically cancel your old policy once they issue your new one.

Your move will impact your car insurance rate. Rates are based in part on an area's claims history, so if your new area has fewer thefts, break-ins, and accidents, your rate may decrease, and vice versa. Your insurer may also use your annual mileage and commuting distance to help determine your rate. If your new address shortens your commute, you might see a lower rate, but if you're driving more, you may see a rate increase.

Frequently asked questions