Insurer Review: Progressive

Headquartered in Ohio, Progressive, known on the New York Stock Exchange as PGR, was founded in 1937. It's annual revenue is approximately $15 billion. Known primarily by the public for its humorous auto insurance ads, Progressive is made up of three insurance companies which are collectively known as Progressive Corporation. The three are: Progressive Agency Pool, Progressive Direct Pool and Progressive Commercial Auto Group. With over 11 million policies in force, Progressive is known for its specially modified fleet of white Ford Explorers and Escapes known as "Immediate Response Vehicles" or IRVs. The company is known for its cheeky advertising featuring checkout girl "Flo," and the smart tagline, "Now that's Progressive!"

Financial Outlook

As of 2008 Progressive is ranked 175th on the Fortune 500 list, putting it neck and neck with other insurers such as Allstate and State Farm. They are one of the fastest growing insurance companies in America. Their Standard & Poor rating is a very good A+. The reasons given by the rating firm are strong operating performance and sustainable competitive advantages.

Claims Service

While no insurance company is perfect, Progressive has at least attempted to go to the next level regarding claims service. With its "concierge service" approach, Progressive agents not only take their customers' claims in the event of an accident, they actually see the vehicle through to the point of repair! According to Progressive, their intentions are: "...To [sic] handle entire claims/repair process from soup to nuts, provide one-stop convenience and peace of mind." Drawbacks of the system are that these full-service centers are not available in every area, and while they do take some of the hassle out of the repair process, it also leaves their customers subject to their insurer.

Customer Service

JD Powers and Associates puts Progressive in the middle of the pack where customer service is concerned, with 3 out of 5 stars. But it can be difficult to ascertain how they came to that decision. The reason is that while customer service is a component of their rating, so is "overall experience," premium rates, quality of billing and payment system, as well as quality of communication with their customers. But their efficient and customer-friendly website has been cited as #1 website for 2008.

With a strong financial outlook in a weakened economy where former giants are needing federal bailouts, Progressive is a strong performer that reacts goes above and beyond with mold-breaking programs to improve customer service and satisfaction. And with good rates to boot and open quoting in order to compare your potential rates against your current premiums, Progressive may well be your next insurance company.