Study of rates available to more than 90,000 customers show Americans could save hundreds simply by shopping for auto insurance
Unique Online "Rate Ticker" Highlights Spread in Available Rates
MAYFIELD VILLAGE, Ohio — January 22, 2002 —The future of the economy is uncertain and unemployment rates are soaring. While experts tell Americans to prepare for the future by putting aside a cash reserve, recent studies by Progressive Auto Insurance (NYSE: PGR) find consumers may be missing out on a money-savings opportunity simply by not shopping around for auto insurance.
A countrywide phone survey of 2,000 consumers found that the majority of consumers (58 percent) report being somewhat or extremely unlikely to shop for auto insurance, even though they could save significantly by doing so. Additionally, 29 percent of consumers reported that they have not shopped for insurance in at least five years.
This survey was conducted to coincide with Progressive's study of auto insurance rate variance, or the average spread between the highest and lowest six-month rates available to drivers for new policies from the country's leading auto insurance companies. The study found that the cost of a six-month auto insurance policy for the same driver(s) with the same coverages varies from company to company an average of $524.
The variance was calculated by using rate comparisons provided to more than 90,000 consumers who called or went online to receive a Progressive quote and the rates of up to three other auto insurers between July 1 and December 31, 2001.
To highlight the spread that exists in rates available to consumers from different companies, visitors to progressive.com can now see comparison rates offered to other visitors in real time on the site's unique "rate ticker." This new feature displays an up-to-the-minute sampling of comparison rates provided to consumers across the country who used Progressive's online service.
"The spread in rates represents a clear opportunity for consumers to save money," said Alex Ho, consumer marketing director, Progressive. "Consumers generally don't realize that rates from different companies vary; we've analyzed the data to let consumers know that their potential savings is significant. The rate ticker is one way we can highlight the difference in available rates."
The survey also found that some consumers are more comfortable simply renewing their current policy than shopping for better rates. Of those respondents who said they have not shopped for auto insurance within the last year, 19 percent have spent more than 10 years with their current auto insurance company and report having never shopped for auto insurance. Additionally, of those consumers who have been with the same auto insurance carrier for seven to 10 years, 42 percent said they are extremely unlikely to shop for auto insurance.
"Just because you've been with the same auto insurance company for years doesn't mean you're getting the best rate available to you," said Ho. "We counsel all consumers to be smart about their auto insurance and to talk with their agent, their current insurance company or do online research to be sure they have the right coverage and the right services at the right price."
Additional survey results:
- When asked how likely they are to shop for auto insurance, consumers ages 18 to 24 (39 percent) were more likely than those ages 55 to 64 (23 percent) to report being extremely or somewhat likely to shop.
- Men (40 percent) are more likely than women (32 percent) to shop around for auto insurance.
By calling 1-800-PROGRESSIVESM or logging onto progressive.com, consumers can compare auto insurance rates for up to four of the largest auto insurers in the country.
Progressive Insurance (NYSE: PGR), headquartered in Mayfield Village, Ohio, is the nation's fourth largest auto insurance company. In business since 1937, the company provides all drivers with competitive rates and 24-hour, in-person and online services. The company sells its products over the phone at
1-800-PROGRESSIVESM, online at progressive.com, and through more than 30,000 independent agencies throughout the U.S. More information about the company can be found at progressive.com.
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