Introduce
insurance company So you’re looking at the two options of Amica Insurance versus Progressive Insurance. We’re gonna find out who’s going to be the best option for you, which one’s going to offer the best deals, which one is going to offer the best rankings, and who’s gonna treat you best as a customer.
History
So Amica was founded in 19 seven. It’s one of the older insurance companies out there versus Progressive that was founded in 1937. It kind of shows you a little bit of the tech world where Progressive, even though in the 30s wasn’t a tech trend.
insurance company where Progressive kind of held their own as far as being a tech version of a company, they always wanted to be ahead of the trends.
And that’s one of the things I like most about Progressive. But Amica has some powerful things behind it, which is the loyalty of its customers. One out of every three customers with Amica has been with them for 20 years.
There’s some reasoning behind that, and we’re going to dive into that right now. Now, that’s not to put down Progressive, because if you compare the two, amica is the 25th largest or one of the top 25.
They only own about 1% of market share compared to the giant Progressive, which is usually in the top five, and they own about 13% of market share of the whole industry. Now, that sounds like a little amount, but the largest is State Farm, which we did a review here that owns only 16%.
Benefits
So to show you the difference between the largest versus Progressive, they’re up there. They’re one of the big guys. We’re comparing 18 million policies with Progressive to 1090 policies enforced issues with Mika.
It could have grown since the last time the report that I found, which was 2019. So what are some of the benefits of each company? Which one has something over the other? Well, let’s take a quick look at the two things that I think are very impactful. Amica has a loyalty discount.
So the longer that you’re with them, the better discount that you get. That’s one of the few and least things that people have anymore because it’s sort of a died off thing where most companies.
what they do is they do a claims free discount instead of a loyalty discount. And Amica is really honed in. If you’re going to stay with us long term, we’re going to give you a little bit better deal for a few years and then you’ll just kind of max it out after
insurance company A certain amount of time. Where Progressive does that claims free discount instead of the loyalty discount that’s their spiel or so to compete with that option.
Amica also offers a very large discount if you bundle your home and auto it’s up to 30%, depending on the state that you’re in. Very similar to most to all companies are going to give you about that 20% to 25% off.
But it’s hard to compete with that additional 5%. You’ve almost got to do some additional programs to keep up with that option. Where I think Progressive is really crushing it is with their homes.
Discounts
It’s weird to say that because Progressive recently bought the company that they’ve been partnering with. It’s ASI American Strategic Insurance. And they now own them. They’re part of Progressive and they give a very large discount for new homeowners. So if you’ve had any updates on the home, that’s one of the benefits.
But if it’s a new purchase or a new home, you’re going to get more and large discounts in those scenarios. The other part is because they are that tech piece and they want to be ahead of the trend,
They also partnered with a program that allows them to see if you’ve had updates on your homes. So if you have an agent that isn’t asking all of those questions or you they just forget it.
Where Progressive will give you that discount if your roof has been replaced and it’s been reported. Now, both Progressive and Amica are very powerful companies.
They’re both great companies if you’re thinking of shopping with them. What I would recommend that you do is to check out an app called Cover where you can actually go through and shop multiple companies where they shop close to 30.
Some odd plus companies in most states. But like we mentioned, Progressive is good with homes and they have that with the homes. It’s kind of nice to compare other companies to see if maybe just Amica or Progressive are good.
But are there other options that are available to you too, so you can really compare on what the market is out there? I’ll put the link in the description below for the younger drivers.
Progressive, in my opinion, has always been the best as far as the higher risk younger driver type. Although Amica does give a discount like most companies where if you’re under 21 and you actually take a driving test.
which you will to get your license, then they’ll give you an additional discount for that. Whereas with Progressive, they’re going to offer the snapshot.
That’s a powerful tool because it gives you a percentage off right away and it gives you more percentage off if you show that you’re a good driver. Essentially they’re tracking your driving history.
The cool thing that Progressive is doing with that, if you haven’t joined them, you can go directly to their site, test the snapshot yourself, and see what kind of rankings you’ll get. It’ll give you the discount you’ll take two weeks. It will track your driving.
At the end of it, it’s going to give you a score and it will give you a quote based on the discount that you would get. It will automatically apply that that’s something unique that no one else does, that I’ve seen.
And I did a video on that testing it where I literally cut my bill close to 50% off doing that program now, kind of leading into the old school where Amica is one of the few places that still does this. But they’re a mutual company. They essentially give you dividends when they’re profitable.
You get a small piece of that. You can have up to 20% off your policy, depending on how well they did for that year. So what’s the best option? Are you going to go with the company that has the ride share,
that has the accident forgiveness programs, that has all of the new tech and the new things? If you’re driving Uber, they’ll have an option to ensure you that route versus the one that has focused more so on the experience of the customer a little bit more and focused on giving back as well without having to do some of the extra techy pieces.
Online Ratings
They’re both really good options. Let’s find out what the actual online ratings of each of them are. So I’m on Bank Rate, where they did all the data searching for me, and they’re giving the AMS best score. They’re both an A plus. That essentially just tells you that both companies are stable.
They better be. They’re in the top 25 and in the top five. So I would expect them to be around for a long time. Now, bank Rate itself gave them a score where they gave Amica a four six and Progressive a four one. Now, I can see where this would hand true, because you gotta remember, Progressive does have more policies.
It should give them a better reason to have a better score, but they’re going to naturally have a lot more complaints. And JD. Power is on board with that same scenario where they’re giving Amica a 907 out of 10 and Progressive an 856 out of 10.
Essentially what they’re doing is they’re checking the complaints that customers have versus the positive affirmations that they get those online scores and reviews and they go look at the prices of the policy. They mix all of that data together to come up with these scores.
And that’s how they rank most of these companies. So neither of them, to be honest with you, are ranking as high as they sound. But so far, Amica is leading by leaps and bounds over the Progressive policy. Cost wise, they’re very close. Amica is one $378 for an annual policy on average, where Progressive is one $509.
Both of those are competitive in general. So either route you go, depending who you are fit for, is going to be some options. Keep in mind. Amica might sound amazing, but for the right age and the right credit and the right scoring
Age Comparison
we’re going to go over that next to find out if you’re a fit for either or either of them. So, depending on the age, the 16 year old, if you’re being added to your parents’policy, progressive is going to be the cheapest.
They’re 1950 $5 where you’re compared to Amica, which is $2,389. Once you’re 18, it flips there. Progressive is in that $6,000 range and Amica is in that $5,000 range. Now, it was a huge difference in price there. The main reason that that jump was why would it go from 2000 to 6000 from the 16 to 18?
Well, the 16 year old is being added to mom and dad’s policy, where the 18 year old is being rated on their own renting a primary residence. That’s the way that bank rate typically does their ranking systems.
There’s normally an annual premium, and it’s usually based on having a $500 deductible. I believe it’s the 100 350,000 for property damage as well as uninsured and underinsured motorist. At the 100 300, age 25, they almost leveled out.
Amica is 1701 versus Progressive, which is 1796, age 30, amica starts to win this battle where they’re 1469 versus 1668. And then at age 40 and 60, we’re right around that $1400 range versus that $13 to $1500 range.
So you’re pretty competitive depending on where you go once you hit 60 and above. Progressive actually handles those harder risks better. Amica is looking for this specific customer that is in that age range from 25 to 60.
Read More: How Does Insurance Work? Full explained
