How does Progressive compare your insurance rates with top companies?

December 12th, 2008 | by Rick |
DC asked:


How is that possible? I’ve applied for Progressive quotes before (and wasn’t impressed at all), but how are they able to do that?

Insurance companies all have complex formulas that are used to calculate rates using several factors, including driving history, location, credit, household drivers, vehicles, etc.

Unless they have robots online that steal competitors’ bandwidth and automatically fill out the forms, it doesn’t seem possible. If that was the case, you would think other companies would block Progressive from abusing their servers.

Any ideas?

RICH

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  1. 2 Responses to “How does Progressive compare your insurance rates with top companies?”

  2. By TRAVIS on Dec 14, 2008 | Reply

    QUINCY

    Inusrance companies are required to file their rates with the state insurance commissioner, where they then become public record. Someone from Progressive, goes down and gets the rate information.

    Progressive isn’t stealing rates.

    BUT, those rates they’re quoting you, aren’t binding, either.

  3. By ELVIN on Dec 15, 2008 | Reply

    MAURICIO

    Since the rate books become a matter of public record once they are filed in the state, they do like their competition does and gets a copy.

    All they are doing is using the tables they provide to guess what your coverage might be. They may use a worst case scenario or a best case.

    The formula’s are not really as complex as you might think.

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