Progressive and GEICO are two of the leading names in the American insurance industry today. Both are full-service insurance companies that focus primarily on direct sales via the Internet or by phone. Progressive and GEICO both advertise heavily targeting the younger demographic and burgeoning families on a tight budget.

Despite their similarities, including having the same blue and white colors in their logo, there are some major differences between the two about which customers should be aware before they choose one or the other.

Company Similarities

Both Progressive and GEICO offer a number of similar auto insurance policies, with perks, features and price points. Both companies offer their customers 24-hour roadside assistance, mechanical breakdown coverage, and extras like rental car reimbursement. They also offer similar discounts for things like excellent academic performance, a clean driving record, and safety and security devices that make vehicles less vulnerable to theft or collisions.

photo: teamstickergiant

Discounts for Bundling

Progressive and GEICO also both encourage their customers to bundle their insurance coverage together into a single household policy that encompasses home, auto, life, and other types of insurance. Although traditional full-service insurers like State Farm and Allstate pioneered this practice, lower-cost providers like Progressive and GEICO have made the practice their own with discounts of up to 50 percent on fully bundled policies.

There are some differences around the edges of these bundled policies: Progressive specializes in insuring custom vehicle parts and accessories while GEICO may offer better rates on motorcycle and off-road vehicle insurance.

Policy Special Features

Not all Progressive and GEICO policies are interchangeable, however. Progressive has proven itself a leader in demand-pricing insurance with its groundbreaking Snapshot discount, for which GEICO surprisingly has no equivalent. Drivers who enroll in the Snapshot program install in their vehicles a device that monitors things like average speed, braking time, braking distance, and miles driven.

Over the course of several months, the device transmits information to Progressive’s pricing department, which uses it to create a driver profile and establish a remarkably accurate pricing scheme. Cautious drivers can save anywhere from 30 to 50 percent with the Snapshot program, while more aggressive drivers will likely see little change to their premiums.

Flo Is Used Frequently in Progressive Ads photo: anyjazz65

Focus on the Customer

Although they are both nationally known insurance companies, Progressive and GEICO focus their marketing efforts on somewhat different demographic groups. GEICO has numerous discounting programs and insurance choices intended specifically for service members, veterans and federal employees. For its part, Progressive markets to teen drivers, renters, young families and other demographic groups traditionally considered more expensive to insure.

Cost Structure

From a pricing perspective, Progressive and GEICO are more or less equals. For the same driver, annual premiums on identical GEICO and Progressive policies in a given state generally vary by less than $100 per month, less than 10 percent of the average auto insurance policy’s total cost.

Both are recognized as affordable relative to their peers. GEICO achieves this with a less-risky customer base, while Progressive maintains a robust online presence to cut branch-office costs. Most importantly, neither one is known for cutting corners when it comes to customer service.

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Modern technology has allowed insurance companies to monitor the driving habits of individuals more closely and accurately, making it easier to reward those who demonstrate good judgment while operating a motor vehicle. Travelers IntelliDrive is a program designed to help safe drivers keep their insurance premiums affordable while minimizing risk for the insurer.

Driver Statistics

Auto insurance companies determine the cost of premiums by looking at the make and model of vehicle, the driving record of the individual, and their address. Liability insurance, collision coverage and comprehensive protection can cost much less if the driver proves he or she is a low risk.

The Travelers IntelliDrive program allows the insurer to monitors the daily driving habits of the policyholder. This can result in a substantial savings on insurance premiums when safe and defensive driving habits are recorded.

The Travellers IntelliDrive device is installed in the dashboard photo: Rich Moffitt

Drivers can save money on their car insurance if they operate a vehicle during certain times of the day, drive fewer miles than the national average, and avoid heavy traffic when possible. Parents of teen drivers can also save on premiums by using the IntelliDrive program. Teenagers are considered high-risk vehicle operators, but if they demonstrate defensive driving habits, teens may be offered lower premiums.

Signing Up For The Program

Customers who purchase insurance from Travelers may be eligible to enroll in this program. There is an immediate five percent discount on premiums when the program is initiated, and drivers can save as much as 20 percent on renewal rates. An IntelliDrive device is sent to the customer to accurately record the daily driving habits when the insured vehicle is in operation.

The IntelliDrive device is plugged into the dash of the vehicle and monitors speed, distance, time of day, and even brake force. Acceleration is also recorded as well as fuel efficiency and total mileage. Policyholders can go online and view the data any time they wish.

Parents of teen drivers can also monitor the location where the car is being used, check to see if the teen is driving in an aggressive fashion, or if the car is consuming too much fuel on roads with little or no traffic. Travelers Insurance uses this data to place the driver in a very specified category, one that could result in substantial savings on future coverage rates.

photo: Phil Roeder

How Drivers Save

Insurance companies favor drivers who drive less than 1,000 miles per month, have no moving violations, cause no accidents, and who demonstrate good habits while on the road. The IntelliDrive program monitors everything from brake force to acceleration curves. When a driver shows good judgment on surface streets that are clogged with traffic, the installed device will reflect this by noting fewer hard brake applications and sudden lane changes.

The program is not available in all states. Insurance shoppers are encouraged to contact a licensed Travelers agent to see if the program is in effect where they reside. The lower insurance coverage rates can be worth the enrollment, and policyholders will be able to get a firsthand look at their personal driving habits. Drivers may want to compare Travelers IntelliDrive to other insurance diagnostic device programs such as the Progressive Snapshot and State Farm Drive Safe and Save.

The Travelers IntelliDrive program was designed to reward those who drive in a defensive manner, and who use utmost caution while operating a motor vehicle. This 21st century technology can be used to save money on all types of auto insurance plans.