GEICO vs. Progressive - Who has the cheapest car insurance?

I'm thinking of buying my car insurance online and was wondering which is better: GEICO or Progressive?

The GEICO vs Progressive debate is a frequent question when it comes to buying car insurance online. Both companies have a strong reputation for providing quality car insurance, but if you're new to buying online, which one should you choose?

First, we'll break down each company and give you the strengths of both Progressive and GEICO.

GEICO the company

GEICO was started by Leo Goodwin and targeted government and military employeees. It has since expanded to offer a wide range of insurance coverages including auto, motorcycle, ATV, RV, homeowners, renters, boat, condo, commercial auto, umbrella, life and more.

GEICO insures over 22 million vehicles on more than 13 million car insurance policies. They recently passed Allstate as the second largest insurance company in the U.S., only surpassed by State Farm.

As a wholly owned subsidiary of Berkshire Hathaway, GEICO earned an AA+ rating by Standard and Poor's, an Aa1 rating from Moody's, and a A++ rating from A.M. Best.

GEICO auto insurance discounts

Drivers can save considerably by taking advantage of discounts offered by GEICO. Some of these discounts include:

  • Air bags - 25% to 40% discount off medical payments or personal injury premium
  • Anti-lock brakes - 5% discount off collision coverage premium
  • Anti-theft system - 25% discount off comprehensive premium
  • Daytime running lights - 3% discount on certain coverages
  • Five-year accident free - 26% discount on most coverages
  • Seat belt use - 15% discount off medical payments or personal injury premium
  • Driver's education or good student - up to 15% off certain coverages
  • Emergency deployment - 25% discount
  • Military discount - 15% off total policy price
  • Membership and employee discounts - vary based on group
  • Federal employee - up to 8% off total policy
  • Multi-car - save 25% off your entire policy
  • Multi-policy - earn a discount if you insure other lines with GEICO

Progressive the company

Progressive has been around since 1937 and has it's corporate headquarters in Mayfield Village, Ohio, which is a suburb of Cleveland. With over 450 U.S. offices, Progressive has extensive coverage across America.

Progressive operates a little different than GEICO, as Progressive allows their products to be sold through independent insurance agents. So chances are good that you can get a rate quote from Progressive through your local agent, as long as they are an independent agent.

Progressive is the fourth largest insurance company in the U.S., trailing Allstate and just ahead of Farmers Insurance Group. They have an A.M. Best rating of A+, an Aa2 rating from Moody's, and a Standard and Poor's rating of AA.

Progressive insurance discounts

Progressive does not publicize the exact discounts offered on it's car insurance policies, but here is a list of discounts you may qualify for if you choose Progressive.

  • Homeowner's discount
  • Maintaining continuous coverage
  • Start your quote online discount
  • Sign documents online and save
  • Insure multiple vehicles and get a discount
  • Have multiple policies and save
  • A good student on your policy can earn a discount

Does GEICO or Progressive offer cheaper insurance?

The rates that each company provides are affected by a lot of factors that directly and indirectly impact how much you will pay.

Some of these factors include, but are not limited to:

  • Your credit rating
  • Your occupation
  • How you use your vehicle
  • How many miles you drive annually
  • The performance level of your vehicle
  • Your comprehensive and collision deductibles
  • The level of liability coverage you buy
  • Safety features of your vehicle
  • Your claims history
  • Your driving record
  • The age and gender of drivers
  • Whether or not you are currently insured

There are actually many more details that factor into your car insurance rates. The largest contributors to what you pay are your credit rating, your driving record, and the age of the drivers insured on your policy.

If your credit rating is good, you will pay lower rates with both GEICO and Progressive. Both companies will look at your credit rating when quoting coverage, so it's a good idea to always know your rating and work to improve it.

Drivers with lots of traffic citations will pay more for car insurance regardless of the company you choose. Blemishes on your driving record will increase premiums for up to three years, so it's important to keep your record as clean as possible.

Driver age is a huge factor especially when teen drivers are added to your policy. New drivers are often involved in accidents as they are not as experienced as more mature drivers. If you have a teen driver, expect to see higher rate quotes with both GEICO and Progressive.

To determine rates for GEICO and Progressive, you can either visit both websites and compare quotes separately, or you can complete one form and compare rates from not only those two companies but also many other companies in your area.

To get quotes from multiple insurance companies, click here. If you're looking for the lowest auto insurance rates, it's important to compare as many companies as possible.

Once you have rate comparisons from GEICO and Progressive, it's important to double check that quoted coverages are identical. If you are using different limits or deductibles, you won't have an accurate comparison. Not all companies offer identical coverages, so try to get as similar coverages as possible when quoting.

Whether you choose to insure with either GEICO or Progressive, you can rest assured that you have a quality car insurance company backing your vehicle in case of an accident or claim. Both are financially stable and offer state-of-the-art online quotes and policy management. So whether you want to save 15% in 15 minutes or insure with Flo, you made a good choice.

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