In the third quarter of fiscal year (ending September 30th) the Progressive Insurance Company saw its profit margin continues to decline due to the downfall in the number of car accidents. At the same time, the cost of automobile insurance has been rising steadily, but according to the Association of Automobile Insurance Agents and National Association of Insurance Commissioners (NAICI) the cost of insurance for cars has been on a downward trend for the past three years. While the cost of cars has been increasing steadily, the cost of insuring them has been decreasing since last year. According to Georgeials, General Manager for Progressive, "The decline in new car sales and a drop in new vehicle leasing have resulted in lower demand for policies issued by Progressive. Combined with higher costs associated with vehicle coverage, this has had an adverse effect on the company's solvency."
Progressive has always been an aggressive auto insurer. They have been filing lawsuits against insurance carriers for denying claims that they have made for auto insurance. The lawsuits have been expensive and have caused the insurance companies to raise rates. These lawsuits have cost Progressive many millions of dollars and have forced the company to seek bankruptcy. Today, Progressive is working hard to regain the confidence of their customers and is willing to discount auto insurance rates if the claims given to them are found to be legitimate.
As per the Progressive Insurance website, the company has spent over $30 million in claims paid out to date. The claim statistics show that Progressive has spent around fifty percent more on claims filed over the last three years than the next biggest auto insurer. It should be noted that Progressive is not an all-singing-all-dancing insurance provider.
Progressive's claims process is said to be quite comprehensive. The claim process involves an auto insurance adjuster who determines the fault of an accident, then presents a case to the judge who reviews the case. If the judge believes that the insurance company is at fault, the damages are awarded to the plaintiff. If the court upholds the insurance company's position, then the plaintiff must pay the auto insurance company what it costs to repair or replace the vehicle, plus attorney's fees.
In addition, Progressive offers two types of auto insurance policies. There are third party insurance policies that are sold through independent agents and managed by Progressive. With these types of policies, drivers are covered only for injuries to themselves or another person and not for injuries to the automobile. With third party insurance policies, drivers can choose whether or not to obtain full or limited coverage.
Full coverage car insurance offers more benefits than limited coverage does. Drivers who purchase full coverage must pay all costs that arise from an accident, no matter who is at fault. Liability insurance costs more than regular car insurance because it also includes uninsured and underinsured motorists, as well as other risks that might be involved in a driving situation.
Progressive is a top auto insurer that gives its customers many benefits. Their website has detailed information about their policies, services, and ways to contact them. This website and customer service center are also a great resource for finding affordable auto insurance. Progressive drivers have access to free quotes online twenty-four hours a day, seven days a week.