Progressive vs. State Farm
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State Farm Insurance is the largest car insurance underwriter on the market, with over 16 percent of the total market share. The company was founded in 1922 and is headquartered in Bloomington, Illinois. State Farm employs nearly 19,000 agents around the country.
Progressive Insurance is the second-largest car insurance underwriter, with 14 percent of the total market share. Progressive was founded in 1937 and is based in Mayfield, Ohio. Progressive has more than 38,000 independent agents and sells car insurance in all 50 states.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
Progressive vs. State Farm comparison
Progressive and State Farm are two of the biggest car insurance providers on the market. However, these companies differ in terms of coverage options, discounts, and cost.
Progressive pros and cons
|Wide selection of discounts
Highly rated mobile app
Helpful online tools
|Few add-on coverage options
Rated below average for claim satisfaction by J.D. Power
Rated below average for customer satisfaction by J.D. Power in every region
State Farm pros and cons
|Variety of discounts
A++ financial strength rating
Rated above average for claims satisfaction by J.D. Power
Rated above average for customer satisfaction by J.D. Power in several regions
|Few add-on coverage options
Doesn’t offer 24/7 customer service
Coverage not sold in every state
Is Progressive cheaper than State Farm?
According to rate data from Quadrant Information Services, State Farm has cheaper average car insurance premiums than Progressive. However, car insurance rates are personalized to each driver based on factors like location, driving record and vehicle type. To find the cheapest provider for your needs, it’s important to compare quotes.
|Car insurance company||Average annual premium for full coverage||Average annual premium for minimum coverage|
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
State Farm is more expensive for drivers with poor credit
Drivers who have poor credit typically pay higher car insurance rates. Average premiums for Progressive based on credit score are not available. However, we found that the national average rate for drivers with poor credit is lower than State Farm’s average rate for drivers with poor creidt.
In most states, car insurance companies use credit as a rating factor. However, California, Hawaii, Maryland, Michigan, and Massachusetts don’t allow this practice.
|Credit score||State Farm||National average|
Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Maryland, Massachusetts and Michigan.
State Farm is generally cheaper for young drivers
Young drivers who lack experience behind the wheel generally pay expensive car insurance rates. However, we found that State Farm tends to be a cheaper option for young drivers. For drivers between the ages of 16-20, State Farm’s average rates are lower than Progressive’s rates.
The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy.
State Farm is generally cheaper for adult drivers
Car insurance rates typically start to drop around age 25, assuming drivers maintain a clean record and have good credit. When comparing rates for State Farm vs. Progressive, we found that State Farm is a cheaper option, on average, for adult drivers on their own policy.
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
State Farm is generally cheaper for high-risk drivers
State Farm’s rates are generally less expensive for high-risk drivers. This includes drivers with a speeding ticket or an at-fault accident on their record. However, average rates show that Progressive is a cheaper option than State Farm for drivers who have been convicted of a DUI.
It’s important to understand that not all insurance companies will issue policies for drivers with a DUI. Although we have average rate data for drivers with a DUI, there’s no guarantee that State Farm or Progressive will cover a driver who has been convicted of driving under the influence.
|Driving record||State Farm||Progressive|
|Clean driving record||$1,480||$1,642|
|Speeding ticket conviction||$1,704||$2,140|
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Progressive vs. State Farm: discounts
Progressive and State Farm both stand out for their generous car insurance discounts. Here are a few discounts that are available from these insurers.
Progressive unique discounts
- Homeowner: If you own a home — even if you don’t insure it with Progressive — you might be able to save money on your auto insurance premium.
- Name Your Price: Although not technically a discount, this unique feature could save you money. With Name Your Price, you can input your budget amount and Progressive will display coverage options that fall within your requirements.
- Snapshot: Progressive’s car insurance telematics program is called Snapshot, and it tracks your driving habits and might assign you a personalized discount based on the data.
- Online quote: If you get a quote online before purchasing a policy, you could save an average of 7 percent on your premium. You may also qualify for the discount if you start a quote online and work with a licensed agent to finish the quote process over the phone.
State Farm unique discounts
- Steer Clear: Through the Steer Clear program, drivers under the age of 25 in eligible states could qualify for a discount for maintaining a clean driving record, recording their trips on a mobile app and completing a safe driver program that involves quizzes and video tutorials.
- Good student: You may save if you are a high school or college student with a grade point average equivalent to a “B” or higher.
- Defensive driving course: Policyholders in certain states may earn a discount for completing a defensive driving course.
- Drive Safe and Save: The Drive Safe and Save usage-based insurance telematics program may offer drivers a premium discount of up to 30 percent by tracking safe driving habits.
Usage-based insurance comparison: Progressive vs. State Farm
Progressive and State Farm both offer usage-based insurance programs: Progressive Snapshot and State Farm Drive Safe and Save. Both programs use telematics to track your driving behaviors. If you practice safe driving habits, you could qualify for a discount on your car insurance policy.
|Progressive Snapshot||State Farm Drive Safe & Save|
|Telematics device||Mobile app or plug-in device||Mobile app|
|Monitored driving factors||Hard braking, time of day, length of trip, distracted driving||Annual mileage and basic driving behaviors|
|Potential impact on rates||Rate can increase or decrease||Rate can only decrease, but the discount can change|
|Potential discount||Average of $156||Up to 30 percent|
|Availability||All states except CA||All states except CA, MA, and RI|
Progressive vs. State Farm: customer experience comparison
In terms of claims satisfaction, State Farm has a better ranking than Progressive. In the 2022 J.D. Power’s Auto Claims Satisfaction Study, State Farm earned a score of 882 out of 1,000 for overall claims satisfaction, which is above average. Progressive, on the other hand, scored below average with a score of 861. Similarly, in the 2022 J.D. Power Auto Insurance Study, State Farm scored above average in nearly all regions whereas Progressive scored below average in every region.
Like most of the best car insurance companies, Progressive and State Farm both offer mobile apps. The apps have similar capabilities, such as bill pay, filing a claim, downloading ID cards, and contacting roadside assistance. State Farm and Progressive’s mobile apps are both highly rated by users on the App Store and Google Play Store.
|Customer satisfaction||Progressive||State Farm|
|Apple store||4.8 out of 5||4.8 out of 5|
|Google play||4.6 out of 5||4.7 out of 5|
Frequently asked questions
Yes, Progressive and State Farm both offer homeowners insurance. Additionally, both companies offer a bundling discount, where you can save money for purchasing auto insurance and home insurance together.
The average cost of car insurance in the U.S. is $2,014 per year for full coverage and $622 per year for minimum coverage. However, car insurance rates depend on your location, age, credit score, claim history, driving record, and the car insurance company you choose.
Based on claims satisfaction ratings from J.D. Power, State Farm has more satisfactory claims handling than Progressive. State Farm was rated above average for overall claim satisfaction and Progressive was rated below average.