Progressive Insurance: History And information 2022

Progressive corporation is the third largest insurance company  in the United States. It is an American insurance company which not only the third largest insurance carrier but also  the No.1 commercial auto insurer in the United States.

Progressive Insurance: History And information 2022

Jack Green and Joseph M.Lewis co-founded the company in 1973 which is headquartered in Mayfield Village, Ohio.

What does the Progressive company provides?

The company provides insurance for motorcycles , passenger vehicles, automobiles, commercial vehicles, trailer boats, Rvs etc. It also insures home , life , pet and various other insurances via select companies.

The company has also expanded its roots internationally, offering auto insurances in Australia as well.

The company focuses on different programs that would help the drivers on improving their driving habits and also save money by insuring their vehicles.

According to an article published in February 2011  in Wall Street Journal Progressive corporation had ans advantage over its rivals via Pay as you drive Insurance which is a form of usage based insurance.

Including the Pay as you drive Insurance Progressive as seven Us patents and is aiming on many more . The company began to work on the idea from the mid 1990s and is still working to refine it’s  ideas and bring it to the mass market in the favour of both itself and it’s  customers as well.

One such Pay as you drive or usage based  products of the company is the Snapshot insurance which is a voluntary discount program that helps drivers to improve their driving habits and save money as well via insurance and sharing their driving habits with the company.

The company provides its customers bigger discounts by analysing their driving habits on Progressive.com and checking the eligibility of the customer for discounts.

What are the segments of the Progressive company?

Personal lines , commercial auto and other indemnity are the three segments in which the company operates.

  1. The insurance for private passenger automobiles , motorcycles , boats via direct and indirect channels.
  2. Primary liability and physical damage insurance of automobiles comes under the commercial auto segment.
  3. Professional liability insurances to banks, officers liability insurance etc. comes under other indemnity.

Industrial information of the Progressive company

The company being the third largest insurance carrier in the United states offer jobs to more than 43,000 employees with operating income as per the year  2020 analysis of US $7.713 billion and net income worth US$5.704billion.

The company has total assets worth 64.098 billion US$ and total equity shares of 17.038 billion US$ and the total revenue generated by the firm is 42.648 billion US$.

The company is ranked No.74 on the 2021 Fortune500 list of the top American corporations.

The company has over 13 million policies that are introduced in the mass market alongwith Allstate, GEICO, National wide mutual insurance company, USAA etc.

The company provides its services via various mediums including internet, telephone calls , and even private agencies where people can either apply for their own policy on progressiveagent.com or make a call to the agent to complete the sale .

History of the Progressive Company

The insurance company was initially started in the year 1973 by Jack Green and Joseph M. Lewis as Progressive Insurances.

Later the company found its niche in the year  1956 by providing to insurance to more risky drivers .

A leveraged buyout of the company was completed by Peter Joseph ( son of Joseph Lewis ) and his mother pledging their majority stake as collateral in the year 1965.The company made a total turnover of $1billion in the year 1987 which crossed $20 billion mark by the year 2016.

The company manages to stay at the top by bringing out innovative ideas to reach out to the customers and provide them different platforms through which it comes easily accessible for the customer to apply for insurance via website and later use their phones for further requirements .

The marketing strategy and advertising techniques of the company has also played a role in increasing the turnover. The company uses the quotes of its rivals alongwith their own quotes via television which is the key source to provide info about one’s company or product to the public.

Is the Progressive company Auto expensive?

As per the available informations collected by Moneygeek the insurance company has moderately priced auto insurance for the drivers. It’s  neither very cheap nor very costly and has an average cost of $1,381 per year.

Controversies of the Progressive company

The company settled a class action lawsuit with state of Georgia in the year 2002, over diminished value  claims. Later, the company accepted that they hired  private investigators to collect information on litigants seeking redress from the company.

The litigants later filed another lawsuit against the company for invasion of privacy and fraud.

Another lawsuit was filed in the year 2009 to sue the company for operating illegally to save money by employing illegal and unlicensed workers to repair their clients vehicles.

In the year 2012, the company faced another criticism for the case of Kaitlynn fisher. The company although lost the case and was ordered to pay the motorist in addition to a settlement with the Fisher family to avoid further hearing.

Progressive auto insurance

The insurance company offers several policies , auto coverages , liabilities etc. The wide range of the companies policies and discounts its one of the best choices of the customers .

However the price varies depending upon and services being provided and the demands of the customers.

Pros:

Provides wide range of policies- The company provides a total Of 13 discounts in the interests of the customers.

The no. Of complaints is lower than average- The company was awarded the National association of insurance commissioners for a 2.27 complaint rate.

  • Round the clock available customer support- The customer care support is active all the time serving its customers at it’s  best.

Cons:

The varying prices depending upon the type of purchase – the prices of the policies may differ depending on the type of purchase and mode  of purchase.

Customers giving high satisfaction ratings to the competitors.

Policies can be very expensive

Other types of coverage

Progressive also provide other coverages that includes,

Medical payments,

  • which pays for medical and funeral expenses.

Loan/ lease payoff

  • covers  the difference between the loan/lease and the worth of the car.

Rental car reimbursement

  • pays  for the rentals upto the policy limit.

Rideshare coverage

Custom parts and equipment value insurance

  • covers for the parts of vehicles.

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