Are you in the process of shopping for car insurance? Shopping around to compare car insurance quotes is wise because not all insurance companies are equal. But it’s quite impossible to simply name the best car insurance company. They all differ greatly and offer a wide range of coverages, discounts, policies, and more. So, your specific insurance needs and life circumstances will determine which car insurance company is the best choice for you. Finding the right fit takes some time and research into your options.
When researching your options, you’ll find that two of the leading providers of automobile insurance, both locally and nationally, are State Farm and Progressive. Though both companies have decent rates and high customer satisfaction ratings, one of these choices may be a better pick for you than the other.
To help you narrow down if Progressive or State Farm Car Insurance is the right choice for you, we’ve put together a brief overview with some information.
Arizona Auto Insurance Overview
Arizona state law requires that all 5.1 million Arizona motorists maintain auto insurance. If you do not carry insurance, and in the proper amount, you are breaking the law. The state requires that all drivers carry at least the state minimum level of automobile liability insurance. Required coverage for bodily injury must be $25,000 per person and $50,000 total per accident. The coverage minimum that applies to property damage is $15,000. It is important to note that these required minimums are new as of July 2020, therefore if you have not reviewed your policy since then, it would be wise to do so and ensure that you are in compliance.
Overview of Both Companies
Both Progressive and State Farm offer a wide variety of coverage options and are well-established insurance companies that insure millions of drivers across the nation. They each have competitive car insurance rates, as well as offer different types of insurance through non-affiliated insurers such as home and life insurance.
Both companies are known for offering significant discounts, including a safe driving discount through the use of monitoring software. This software is connected to your vehicle or mobile phone and monitors driving habits directly and adjusts your premium accordingly.
Both companies are suitable selections for most drivers but they have noteworthy differences, therefore a more in-depth look is necessary to determine your choice when comparing Progressive vs. State Farm.
State Farm in Arizona
The State Farm Mutual Automobile Insurance Company is the largest auto insurance company in the United States. They have roughly 18% of the total market share nationally and have been a “household name” for years. Accordingly, they have a strong presence in Arizona’s market. In 2019, they made headlines by implementing a 3% rate reduction in the state for roughly 700,000 motorists. In that same year, they purchased the naming rights for what was known as the University of Phoenix Stadium, renaming it State Farm Stadium. This is the home of the NFL’s Arizona Cardinals.
Progressive in Arizona
The Progressive Automobile Insurance Company, based in Ohio, moved into the third position nationally in terms of market share—nearly 10%. They are well-known for their advertisements featuring “Flo” and for offering competitive rates. Progressive is a car insurer that is still growing rapidly and is highly rated. In 2019, they announced plans to hire over 10,000 new employees across six U.S. cities due to 50% growth. With Phoenix being one of these cities, they added roughly 375 new positions. Therefore, Progressive has a strong presence in Arizona.
Optional Types of Coverage
All automobile insurance companies offer basic forms of coverage. These include liability, comprehensive, collision, uninsured and underinsured motorist coverage. Most companies will begin with these coverages, most of which you can opt in or out of, and then will offer plan-specific policies. Both State Farm and Progressive offer additional and unique policies as well.
Some of the more unique forms of coverage offered by State Farm include:
Rideshare driver insurance: This is insurance coverage designed for professional drivers that contract with rideshare companies such as Uber and Lyft. This coverage will cover rideshare work-related insurance needs while your basic plan will cover personal driving.
Car rental and travel expense coverage: If your vehicle is being repaired, your coverage will pay for a rental car. If involved in an accident more than 50 miles from your home or zip code, travel expense coverage will pay for a hotel and meals.
Emergency road service: If your vehicle suddenly becomes disabled due to an accident, flat tire, engine overheating, or another source, this coverage ensures that you receive the help you need quickly.
Some of the more unique forms of coverage Progressive offers are as follows:
Loan or lease payoff: Coverage is sometimes referred to as “gap” insurance that applies If your vehicle is “totaled.” This covers any difference between the value of the vehicle and any excess debt still owed.
Rental car reimbursement: Pays for rental car costs while your vehicle is being repaired.
Custom parts and equipment: Provides coverage for aftermarket or upgraded parts or accessories. Examples include custom wheels, additional audio equipment that was added, etc. This is especially popular coverage with motorcycle owners.
Deductible savings: For each policy period completed without a claim, you are credited with a reduction in your deductible. This is the initial “out-of-pocket” amount that the driver must pay for comprehensive or collision claims.
State Farm: Discounts
Drive Safe and Save: Customers receive initial and ongoing discounts based on how much they drive. When the vehicle is driven sparingly and operated safely, ongoing discounts apply.
Driver training: Those under the age of 21 may complete certain driving safety courses to receive discounted rates.
Good student: Applicable to full-time students in high school or college under the age of 25 as a reward for proven responsibility and achievements.
Snapshot: The innovative Snapshot program discount works by an app on your phone. It monitors actual driving practices and rewards good drivers based on their usage. Savings average roughly $130 annually.
Sign online and online quote: Getting a quote online and signing up online can save you money. These discounts range from 7-8%. They are very easy to obtain—just process your new policy online!
Continuous coverage: A “customer loyalty” program. Discounts may accrue as you continue to maintain a Progressive policy without interruption (gaps or cancellations).
Teen driver: Though young drivers usually carry insurance at a higher rate, Progressive offers a discount to teen drivers under the age of 18 who have been consistently insured for 12 months.
Both State Farm and Progressive have been in the Top 10 Best Car Insurance Companies each year. Customer satisfaction is typically high for each, though the reasons differ.
State Farm rates highly for customer service due to its 18,000 insurance agents nationwide. Customers were “least satisfied” with the perceived value of their car insurance after a claim was filed though, due to the claims handling process.
Progressive customers are most satisfied with the simplicity involved in filing a claim and the excellent customer service offered. The majority of customers were likely to renew their policy with Progressive.
One demographic category that is different between the two is those with poor credit. Progressive was found to have nearly 10% lower rates for those with a lower credit score. Additionally, those who have riskier driving records, such as younger drivers and those with speeding tickets, typically see lower rates with Progressive than with State Farm.
Assistance Shopping Car Insurance in Casa Grande
The Gebhardt Insurance Group has been providing personal and affordable insurance products in Arizona for years. In the realm of car insurance, we offer insurance options from Progressive and several other leading carriers that may be great options for you. Progressive has shown to be an innovator in the auto insurance market in many ways and we are pleased to answer any questions you may have.
Additionally, we are also a source of insurance to cover your home, life, motorcycle, business, and more. Contact our local agents today for a quote or to discuss your questions at (520) 836-3244.