The decision of Progressive vs. State Farm for car insurance comes down to your specific coverage needs. We ranked State Farm first overall in our 2022 study of the best car insurance companies, while Progressive came in seventh.
We at the Home Media reviews team examined each company’s industry reputation, average rates, coverage options and customer service ratings to see how they compare. In this article, we’ll break down State Farm and Progressive auto insurance to help you decide which is the right choice for you.
According to the National Association of Insurance Commissioners (NAIC), Progressive is the third-largest auto insurance provider in the U.S. behind State Farm and Geico. The company holds 13.7% of the market share and wrote more than $35.8 billion in auto insurance premiums in 2021.
Progressive has been in business since 1937. In 1956, the company began focusing on drivers with violations such as at-fault accidents on their records. Today, the company continues to offer affordable rates for those drivers. This is why we gave Progressive the Low Rates for High-risk Drivers designation in our 2022 study of the best car insurance companies.
About State Farm
State Farm is the largest auto insurer in the country with 15.9% of the U.S. auto insurance market, according to the NAIC. The company wrote more than $41.6 billion in car insurance premiums in 2021.
State Farm has been in business for 100 years and offers affordable rates for most drivers as well as a wide variety of discounts. The company also boasts over 19,000 insurance agents spread across every state except Massachusetts and Rhode Island, making it easy to find personalized service.
Progressive vs. State Farm Coverage
As you would expect, both Progressive and State Farm offer standard coverages such as bodily injury and property damage liability insurance, uninsured motorist protection, collision coverage and comprehensive coverage.
Optional coverages are where you’ll find some differences between the two providers. State Farm offers trip interruption benefits that help pay for food and other expenses if your vehicle breaks down far from home. Progressive offers trip interruption coverage for motorcycles and boats only.
Neither Progressive nor State Farm offers gap insurance, which covers the difference between what your car is worth and what you owe on it in the event of a covered total loss. However, Progressive does offer lease/loan payoff coverage, which limits the payout to 25% of the vehicle’s value. State Farm offers a benefit similar to gap coverage, but it’s only available for vehicles financed by State Farm Bank.
Progressive vs. State Farm: Usage-based Insurance
Both Progressive and State Farm feature telematics insurance programs that can help you save money with safe driving habits. Progressive’s Snapshot® program tracks your driving habits through a mobile app or plug-in device for a specific period of time after you sign up. From there, you can earn discounts through safe driving.
The downside of Snapshot is that you might see a rate increase if you’re found to be an unsafe driver. It’s also important to note that the Snapshot program is not available in California.
State Farm’s usage-based program is called Drive Safe & Save™. You get a discount just for signing up for the program, and you can save up to 30% by maintaining safe driving habits until you renew your policy. Drive Safe & Save tracks acceleration, braking, cornering, speed, time of day and phone use to evaluate your driving.
The Drive Safe & Save program is not available in California, Massachusetts or Rhode Island. Discounts may not be available for certain drivers in North Carolina.
Progressive vs. State Farm Pricing
On a 10-point scale, we rate State Farm 9.2 and Progressive 8.7 for cost. State Farm’s rates are typically lower than Progressive’s, but both companies offer car insurance rates below the national average, as seen in the chart below:
*Note: All estimates are for full-coverage insurance and based on the standardized profile of a 35-year-old driver with a clean driving record and good credit history unless stated otherwise.
Progressive vs. State Farm Cost Estimates
Car insurance rates vary widely based on individualized factors. Here are a few cost estimates for various types of driver profiles from Progressive and State Farm. All estimates are for full coverage auto insurance policies.
Progressive vs. State Farm: Discounts
Progressive and State Farm offer impressive car insurance discounts to help policyholders find the best rates, but there are some differences in the types of discounts available with each provider. For example, Progressive’s safe driver discount is based on good driving tracked through the company’s usage-based Snapshot program, while State Farm’s is simply earned by going three years without moving violations or at-fault accidents.
Here’s a breakdown of the discounts offered by these leading providers:
Progressive vs. State Farm: Customer Experience
State Farm ranks highly in both the J.D. Power 2021 U.S. Auto Claims Satisfaction Study℠ and the J.D. Power Insurance Shopping Study. Out of 1,000 possible points, State Farm ranked first in the shopping study with 885 points and sixth in the claims satisfaction category with 892 points. Both scores put State Farm well above the industry average. Progressive scored below average in both J.D. Power studies.
When it comes to BBB customer ratings, neither company receives high marks. This is relatively normal for the industry, as people are more likely to report negative experiences to the BBB than positive ones. State Farm holds an A+ rating from the BBB, while Progressive has an F rating.
We reached out to Progressive for a comment on its low BBB ratings and below-average performance in J.D. Power studies but did not receive a response.
Progressive vs. State Farm: Conclusion
When it comes to comparing Progressive vs. State Farm, affordable rates and solid customer service are common threads. While each provider is a reputable option, we rank State Farm higher in nearly every category. That’s why we named State Farm our Editor’s Choice.
Other Recommended Car Insurance Companies
It’s always best to compare car insurance quotes from multiple providers. With that in mind, we recommend checking out Geico and Travelers in your search.
Geico: Affordable for Most Drivers
Affordable rates and a long list of discounts make Geico a smart choice for many types of drivers. The popular auto insurance provider has an A+ rating from the BBB and an A++ financial strength rating from AM Best. Geico received the highest reputation rating in our review at 9.8 out of 10.0.
Keep reading: Geico insurance review
Travelers: Most Coverage Options
As one of the top-rated companies in our industry-wide review, Travelers stands out for the wide range of coverage options it has on offer. From two levels of roadside assistance to its new car replacement coverage, most drivers should be able to find auto insurance coverage that meets their needs through Travelers. Its car insurance policies are also typically affordable, with average costs that fall below the national average.
Keep reading: Travelers insurance review
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
*Data accurate at time of publication.