With long histories in the industry, these two providers have a lot to offer.
Progressive and State Farm have both been around for almost 100 years, and each has plenty of happy car insurance customers. But which one is the best choice for you?
In this article, we will compare Progressive vs State Farm to see which provider comes out ahead. We can tell you already that, in a competitive insurance market, both have great discounts and financial strength to fulfill claims. So, will Jake from State Farm bring it home for the red team, or will Flo steal it for the blue team?
In this article:
- Progressive Vs State Farm Comparison
- Progressive Auto Insurance
- State Farm Auto Insurance
- Progressive Vs State Farm: Usage-Based Discounts
- Progressive Vs State Farm: Which Is Best For You?
- Other Top Insurance Companies
Progressive Vs State Farm Comparison
|Eligibility||No restrictions||No restrictions|
|Usage-Based Discount||Snapshot||Drive Safe and Save|
|AM Best Financial Strength Rating||A+||A++|
|J.D. Power Insurance Shopping Rating||838 / 1,000||847 / 1,000|
|J.D. Power Auto Claims Satisfaction Rating||856 / 1,000||878 / 1,000|
|Extras||Small accident forgiveness, large accident forgiveness, roadside assistance, rental reimbursement, gap insurance||Steer Clear young driver app, roadside assistance, rental reimbursement|
*Market share statistics are from a 2018 report by the National Association of Insurance Commissioners (NAIC). J.D. Power statistics are from the 2019 U.S. Insurance Shopping Study and the 2019 U.S. Auto Claims Satisfaction Study.
To compare Progressive and State Farm to other major insurance providers, use this tool:
Progressive Auto Insurance
Progressive car insurance has been in the insurance business since 1937. Since then, the company has introduced a number of innovations. For example, Progressive was the first major auto insurance company to launch a website, the first to sell premiums online, and the first to offer usage-based insurance. The company is the third largest auto insurer in the United States and wrote $27 billion in premiums in 2018, according to the NAIC.
When comparing Progressive vs State Farm, keep in mind that Progressive has a strong app that lets drivers request roadside assistance, initiate claims, and manage their policy. You can also chat with the company or call a representative 24/7 – not all insurance companies offer 24/7 customer support, believe it or not.
Coverage Options With Progressive
With Progressive, you can get car insurance that satisfies your state’s minimum requirements or goes beyond them. Here are the standard options that Progressive offers:
|Coverage Type||What It Does|
|Bodily Injury Liability (BI)||This coverage pays for the other party’s medical expenses and lost wages in accidents you cause. It has a limit per person and per accident.|
|Property Damage Liability (PD)||Property damage covers repairs to other cars in accidents that you cause. This coverage has a limit per accident.|
|Uninsured/Underinsured Motorist (UM/UIM)||This coverage protects you, your passengers, and your vehicle if you get hit by an uninsured or underinsured driver. It usually matches your liability limits.|
|Collision||Collision coverage repairs your car after an accident regardless of fault.|
|Comprehensive Car Insurance||This option pays to repair your car after damage from other events like hail or a flood.|
|Medical Payments (MedPay)||MedPay covers your medical expenses after an accident, no matter who caused it.|
|Personal Injury Protection (PIP)||This option pays for your medical bills, lost wages, and sometimes more after an accident regardless of fault. No-fault states require PIP coverage.|
When shopping for insurance, you’ll see liability limits written as three numbers, like this: 100/300/100. In this example, the limits provide $100,000 bodily injury per person, $300,000 bodily injury per accident, and $100,000 property damage liability. That might sound excessive, but it’s actually a good coverage level to have to avoid lawsuits with other drivers.
You can get a few other coverage options from Progressive:
- Roadside assistance: Get coverage for lockouts, fuel delivery, flat tire changes, and towing.
- Rental car reimbursement: If your car has been in a covered accident, Progressive can cover the costs of a rental car up to the amount you specify. Be aware, rental car reimbursement might not cover the hours or days that your car sits in the shop waiting for repair authorization.
- Loan/lease payoff: With this option, Progressive will pay an additional 25 percent of your car’s value toward the amount you have left to pay on your loan.
- Custom parts and equipment value: Normally, aftermarket modifications aren’t covered for repairs. However, with this option, you can add your custom sound system or racing seats to your insurance coverage.
Progressive Customer Service
Progressive’s customer service track record is average, which is an important thing to know when comparing Progressive vs State Farm. It’s not the best, but it’s not the worst. On J.D. Power’s Auto Claims Satisfaction Study, Progressive ranked in the middle of the pack. However, on the Insurance Shopping Study, Progressive came in second-to-last place, with 18 other companies faring better.
The Name Your Price Tool
Buying insurance can be confusing. You might be looking at a policy with 10 or more types of coverages, and each of those affects your total price. Finding a combination under your budget takes time, but the Name Your Price Tool® can speed that up.
The Name Your Price Tool® lets you plug in your desired budget first. Then it shows you policy options that fit under your budget. It cuts out a good chunk of busy work, and you can still tweak your plan after you get recommendations.
Comparing Progressive vs State Farm, the number of discounts available from each company is the same, but the actual discount offerings vary. With Progressive, you may qualify for the following discounts:
|Multi-Policy||Up to 5% off|
|Multi-Car||Up to 12% off|
|Online Quote||Up to 4% off|
|E-Signature||Up to 8.5% off|
|Pay In Full||Varies|
|Snapshot||Average of $145 off|
|Student Away At School||Varies|
|Homeowner||Up to 10% off|
Progressive Average Cost
Even if you don’t end up buying a policy from Progressive, it could be a good idea to get a quote from the company. That’s because you can compare quotes from other popular providers right on Progressive’s website at the same time. We think comparing multiple quotes at once is easier than filling out multiple online forms.
Also, Progressive wouldn’t offer a price comparison tool unless it offered competitive prices. In fact, many people find cheap car insurance through Progressive. Certain things can help you find a better rate, like having good credit scores, a clean driving record, and being a safe driver. The type of car you drive can also influence your premiums.
State Farm Auto Insurance
As of 2020, State Farm auto insurance will have been in business for 98 years. It’s not quite the oldest car insurance company, but it is the largest in the United States – it wrote $48 billion in premiums in 2018 according to the NAIC. It's important to call out that, while State Farm advertises availability in 50 states, the insurer is currently not accepting any new customers in Massachusetts or Rhode Island.
The State Farm website says that the company had 43.7 million auto policies in force at the end of 2018. That’s a lot. Chances are, if you don’t have State Farm, you know someone who does. So, let’s compare Progressive vs State Farm and see if the latter is worthy of that many customers.
Coverage Options With State Farm
Like most car insurance companies, State Farm offers standard coverage. You can also get a few more options, including:
- Car Rental Expenses: This option pays for a rental car after a covered claim.
- Travel Expenses: This pays for your meals, lodging, and transportation if you get into a covered accident over 50 miles from home.
- Rental Car Deductible: State Farm will pay $500 toward your deductible if you get into an accident while driving a rental car.
- Emergency Road Service: State Farm’s roadside assistance program covers up to one hour of mechanical labor at the site, towing to the nearest repair shop, lockout services, fuel delivery, spare tire changes, and jump starts.
State Farm Customer Service
Comparing customer service between Progressive vs State Farm doesn’t really tip the balance in either direction. State Farm scores high ratings in some areas but average ones in others. For example, State Farm was ranked in fifth place on J.D. Power’s Auto Claims Satisfaction Study – 11 places ahead of Progressive. However, it didn’t impress on J.D. Power’s Insurance Shopping Study.
The company has an A+ rating from the Better Business Bureau (BBB). Also, it has fewer complaints on its BBB page than Progressive does, even though it has many more customers than Progressive.
State Farm Discounts
You could qualify for the following discounts with State Farm auto insurance:
|Defensive Driving Course||Varies|
|Student Away At School||Varies|
|Good Student||Up to 25% off|
|Vehicle Safety||Up to 40% off PIP and MedPay|
|Passive Restraint||Up to 40% off PIP and MedPay|
|Multi-Car||Up to 20% off|
|Multi-Policy||Up to 17% off|
|Drive Safe and Save||Up to 30% off|
|Steer Clear||Up to 15% off|
State Farm Average Cost
For some drivers, State Farm offers better discounts than Progressive. For example, if you’re a student, you could get 25 percent off with State Farm’s good student discount and another 15 percent off by completing the Steer Clear program. However, the quotes you see between Progressive vs State Farm can vary – you might find Progressive to be cheaper even after those discounts.
Neither State Farm nor Progressive provides discounts to seniors or members of the military. However, that doesn’t mean seniors or military personnel can’t find good rates from these companies.
Progressive Vs State Farm: Usage-Based Discounts
Progressive’s Snapshot program and State Farm’s Drive Safe and Save both provide usage-based discounts to good drivers, but what’s the difference?
If you’re thinking about joining Progressive’s Snapshot, consider yourself warned: Not everyone is a good driver, and not everyone gets discounts. In fact, about 20 percent of Snapshot program participants actually see their rates increase, according to Progressive. Rates can increase because of high-risk driving habits, not just by losing the introductory discount.
If you drive late at night and tend to take corners fast, Snapshot won’t be worth it. However, if you really are a good driver, it could pay off. You can save about $25 on your first policy and about $145 on average after that.
State Farm’s website says that drivers can save up to 30 percent with Drive Safe and Save. Drivers get a 5 percent discount for signing up. Drive Safe and Save tracks speeding, fast corners, hard braking, acceleration, and distracted driving. The good thing about this program is that it can’t raise your rate because of high-risk driving. Now, your rate might increase if you become ineligible for a low-mileage discount you previously had, but that’s different.
Progressive Vs State Farm: Which Is Best For You?
Considering all the evidence, we think both of these companies would make a great choice for auto insurance. If you’re a student, it would be unwise to pass up a quote from State Farm. If you’re looking for affordable car insurance after college, Progressive is a great option. Plus, with Progressive’s comparison tool, you can also check out a few other companies at the same time.
We recommend getting free quotes from both providers to ensure that you are getting the best rate and coverage possible.
Other Top Insurance Companies
Speaking of getting multiple quotes, there are a few other great providers out there. We recently reviewed the best auto insurance companies in the industry, and along with Progressive and State Farm, USAA and Geico rounded out our top four choices.
You should check out USAA car insurance if you or your family have any military affiliations. USAA tends to be an affordable option for those who qualify and can be cheaper than State Farm or Progressive. After comparing multiple insurance companies, USAA was the only provider that we gave five stars for its prices and reputation for great customer service.
It’s also a good idea to include Geico auto insurance in your search. Geico has affordable coverage and is one of the better options if you have a speeding ticket on your driving record. The point is to look at multiple rates so you don’t just pick the first quote you see, whether that’s from Progressive, State Farm, or another insurance company.
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