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Car or auto insurance is one of the most popular and prolific insurances in the United States today. Why, some people even prioritize getting car insurance rather than health or life insurance. With regard to car insurance companies, Progressive and Government Employees Insurance Company, better known as Geico, are among the largest companies in the country today.
Their insurance policies not only cover auto insurance, but also the things that people care much about, such as their homes, their lives and even everything in between. So which is better? Progressive or Geico? Like most consumers who, Let’s compare these two giant auto insurance companies and find out.
There are several factors that we can compare both insurance companies with. Let’s start with . In the year 2012, Progressive reports a revenue of $17.1 billion. They had 25,900 employees at the time. Aside from auto insurance, they also offer about 20 more types of insurance policies. One of the strong points that Progressive has and is known for are the avant garde ideas they introduce to the insurance industry.
They were pioneers of some popular insurance concepts such as drive in claims service, insurance premium installment plans and pay as you drive insurance, among others. They also came up with a great marketing strategy, a discount that they have termed as “snapshot”. With , drivers can voluntarily install a small equipments that measures and records their driving habits for a certain period of time, usually 30 days.
If the snapshot determines that you meet the requirements of a safe driver, you can receive a discount of up to 30 percent. However, like any other company, Progressive has its own disadvantages as well. As of the moment, they are still not BBB or Better Business Bureau accredited. Although, technically, this is not a requirement for companies, a lot of consumers value the opinion of BBB.
Another field that Progressive seems to have challenges with is regarding customer service. They are among the lowest ranked car insurance companies in this area. And with regard to price, Progressive’s prices are considerably higher than that of the other companies.
Let’s move on to . Technically, Geico is considered the smaller of the two companies. They reported a $15.4 billion revenue, and they had 26,000 employees in 2011. Aside from auto insurance, they offer 18 more types of insurance policies.
They operate differently from progressive in a sense that they do not offer insurance through local insurance agents, but rather provide insurance through the company. With this strategy, the company actually gets to save in over head costs, and this translates to being able to offer lower rates and several discounts to consumers.
Another string point of Geico is they put customer service at number one. In fact, they were ranked consistently at number one in terms of customer satisfaction. And being known as a solid company with impressive financial backing, it is possible for almost anyone to get coverage with them. In fact, JD Power even identified them as the best in New York. They have 9.58% market share.
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