Progressive is one of the most popular car insurance companies. More people are opting for Progressive for cheaper car insurance, but the rates may not always stay affordable.
If your Progressive car insurance went up, you might be wondering what happened. We did some research, and here is what we discovered about the matter!
Why Did My Progressive Insurance Go Up?
Progressive car insurance can go up because of inflation, which will also increase the cost of repairs, making your insurance rate costly. Plus, the labor shortage can make the repairs even more expensive. Additionally, filing claims frequently or getting into multiple accidents can make Progressive charge more for your insurance plan.
Are you curious to learn about more reasons why your Progressive insurance is more expensive? We compiled a list of reasons below, so read on!
While it may not be your fault, inflation is one of the biggest reasons that your Progressive insurance went up.
That said, inflation refers to the rate of price increases over time, which makes the general cost of living and services more expensive.
For instance, the Consumer Price Index increased by 9.1% from 2021 to 2022, so most of the services that we pay for, including insurance, will become costlier.
2. Cost Of Repairs
As stated earlier, inflation occurs when the price of goods and services increases, which means the cost of performing repairs goes up as well.
Generally, insurance companies like Progressive offer insurance that involve repairs for cars and motorcycles.
As such, Progressive would have to increase the insurance rates accordingly to match the cost of repairs.
While Progressive is trying to help you save money through its insurance plans, the company also does not want to make a loss with its business.
3. Newer Car Models
If you get a new car and want to start a new insurance policy or add the car to your current coverage plan, you may notice that your new car is more expensive than other rates.
Usually, it is costlier to insure new cars because the repairs for newer cars are more expensive.
Additionally, newer cars often have more modern, costly parts that the insurers will have to consider when deciding your insurance rate.
4. Shortage Of Labor
Other than inflation, lacking enough people in the workforce can also drive up your insurance rates.
According to the Bureau of Labor Statistics, the unemployment rate in June 2020 was 3.6% in the United States.
Generally, most companies, including repair shops, will increase their salary offers to entice more people to apply for work.
As such, not only will the cost of repairs go up due to inflation, but the cost of hiring labor to perform the repairs will also be expensive, which insurers will calculate into your premium.
5. Credit History
Your credit score will determine various financial aspects of your life, including how much your Progressive insurance will cost.
Normally, people with average or good credit scores will get regular or cheaper rates for car insurance because they are more likely to make reliable payments.
On the other hand, people with poor credit scores are high-risk clients that may not pay their car insurance dues on time, which is why insurers will raise their rates.
Therefore, if your credit score recently dropped, your insurer may update your insurance rate to match your credit score.
6. Driving Record
Usually, insurance companies like Progressive base insurance premium rates on how risky a client is on the road.
For instance, a person with no bad driving record is likely to have a cheaper insurance rate because they are not likely to get into an accident.
On the other hand, a person with various violations, such as speeding, will likely deal with more expensive premiums because they have a higher risk of getting into an accident.
If you recently committed several violations or got into multiple accidents, Progressive insurers may have to increase your insurance rate to avoid losing money.
7. Your Deductibles
If you recently decided to change your car insurance deductible, it is probably why your Progressive car insurance got more expensive.
Generally, deductibles refer to how much you will pay out of pocket whenever you file claims for your car repair bills, which usually range from $250-$2,500.
You will get a cheaper insurance premium when you choose a high deductible. However, choosing a low deductible will make your premium go up.
8. Filing Claims
While you would want to file a claim to save money on car repairs, filing claims can also be why you have to pay more for Progressive car insurance.
That said, this is because car insurers like Progressive will calculate the rates based on how risky a client is.
As such, filing a claim after you got into an accident can make your rate more expensive, and some rates can increase as much as 20-40%.
However, not every claim you file will increase your rate, but being at fault for an accident or filing frequent claims can make Progressive increase your premium.
9. Added Coverage
You will have to pay more if you decide to update your Progressive coverage by adding more policies to your plan.
That said, this occurs because you want more liability coverage, so Progressive will increase your rate according to how many policies you add.
For instance, if you bought a new car and added the car to your insurance coverage plan, your rate will go up.
To know more, you can also read our posts on why car insurance is so expensive in Texas, why Nissan Altima insurance is so high, and why USAA insurance is so expensive.
While Progressive is considered one of the cheaper car insurance companies, the insurance rates may not always stay low.
For example, various factors can make your Progressive car insurance more expensive, such as claim history, credit history, and more.