USAA vs. Progressive Car Insurance Comparison

USAA and Progressive have offered insurance coverage in the United States for nearly a century.

Drivers will find many similarities when comparing USAA vs. Progressive, however, there are also subtle differences that set the two companies apart.

Some of these differences include:

  • market focus (USAA targets military personnel and their families)
  • extra coverage options
  • discounts, and
  • financial strength ratings

If you’re considering purchasing auto insurance from either company, it’s best to obtain a quote from each to determine which price best suits your budget.

Additionally, comparing reviews of USAA and Progressive provides insight into which company will better meet your insurance needs.
In this review, we’ve made it simple for you to compare Progressive vs. State Farm over several elements: coverage and benefits, customer experience, financial strength, and pricing discounts, while also looking at both companies’ equipment, monitoring, reputation, contract and price, and technology integration.

USAA vs. Progressive Car Insurance Policies Compared

When making comparisons between Progressive vs. USAA, it’s easy to see that the two have a similar roster of insurance offerings.

Despite this, it’s worth noting that Progressive comes out slightly ahead when it comes to extra coverage options, such as custom parts (sound system).

What Do Their Customers Think?

Once drivers have purchased the right amount of coverage for their needs, communication with their insurance provider is typically limited.

usaa car insuranceAside from making minor changes to their policy, most further contact between a policyholder and their insurance company occurs during the claims process, which is why so much importance is placed on claims when comparing and rating Progressive vs. USAA.

The J.D. Power Claims Satisfaction Report gives customers the chance to compare insurance providers using ratings from real customers and ranks USAA vs. Progressive and other major competitors.

J.D. Power uses three key performance indicator categories to analyze customer satisfaction and create their rankings: communication, ease of service interaction, and timeliness.

In J.D. Power’s 2017 Auto Claims Satisfaction Study, even though USAA wasn’t fully eligible for the study, it was rated and received an overall satisfaction score of 5 out of 5. Progressive was given a considerably lower rating of 3 out of 5, ranking just below Esurance and American Family, and just above Travelers and Auto Club of California Insurance Group.

While Progressive’s rating is considered above average, USAA’s is exceptional.

Overall Satisfaction Satisfaction with Initial Claims Reporting Process Satisfaction with Representative Handling the Claim Satisfaction with the Repair Process Satisfaction with the Rental Car Process
USAA 5 out of 5 stars 5 out of 5 stars 4 out of 5 stars 5 out of 5 stars 4 out of 5 stars
PROGRESSIVE 3 out of 5 stars 3 out of 5 stars 3 out of 5 stars 3 out of 5 stars 4 out of 5 stars

Just as several factors go into creating each insurance company’s claims satisfaction rating, several variables also go into rating each company’s overall customer satisfaction.

Aside from the claims process, other elements come into play, such as how each company handles customer inquiries and complaints,  as well as how it communicates essential information to current policyholders.

The J.D. Power auto insurance study considers these elements and uses them to rank well-known insurance providers against each other to determine which provides the best customer experience.

In the 2017 study, USAA was given an overall satisfaction rating of 5 out of 5, while Progressive was rated 3 out of 5. Again, this indicates that Progressive’s level of customer satisfaction is just slightly above average while USAA is again given an exceptional rating.

USAA earned ratings of 5 out of 5 in all five of the individual categories that make up the overall satisfaction rating, except for local agent, for which the company was rated only 3 out of 5.

Progressive was given scores of 3 out of 5 in four of the five individual categories and received a rating of 2 out of 5 for its call center representatives.

As California is the most populated state in the United States, the California Complaint Ratio Study can be used to give consumers a greater understanding of how many complaints each insurance provider receives in any given year.

The study compares the number of justified complaints each company has received with their approximate claims exposure (number of vehicle policies) to calculate a complaint ratio.

Out of 50 companies in the 2017 study, USAA ranked 17th. With a total of 14 complaints received in 2017 and an approximate claims exposure of 469,968, the company has a complaint ratio of 3.0 per 100,000 vehicle policies. Progressive was ranked a bit lower in 27th place.

With a total of seven complaints and an approximate claims exposure of 125,602 claims, the company’s complaint ratio comes out at 5.6. These rankings indicate that Progressive receives a higher volume of complaints per policies in California than USAA.

Although no official median was released for this study, the numbers indicate a median of 5.25 is average, meaning that USAA’s complaint ratio is below average, while Progressive is only slightly above average.

The National Association of Insurance Commissioners (NAIC) collects data on customer complaints on a national level. It establishes complaint ratios (complaints measured against annual premiums), based on a national median of 1.00—meaning a complaint ratio of more than 1.0–indicates an above-average volume of complaints.

Again, Progressive receives a higher volume of complaints than USAA with a complaint ratio of 1.11, while USAA is almost identical to the national median at 1.01.

Comparing Financial Strength

A given insurance company’s financial strength isn’t usually the first thing that comes to mind when evaluating insurance provides.

However, it’s an integral part of finding an insurance company that can be trusted. A strong credit rating shows that the company should be able to pay their policyholders in the event of a major disaster with a high volume of claims.

Comparing Progressive vs. USAA’s financial strength can be done by obtaining credit ratings from one of the five major rating agencies:

  1. Moody’s
  2. A.M. Best
  3. Standard & Poor’s
  4. Fitch Ratings, or
  5. Kroll Bond Rating Agency

Credit ratings from Moody’s and A.M. Best indicate that USAA is very strong financially. Moody’s has given USAA a rating of “Aa1,” which suggests that the company’s outlook is stable, while A.M. Best’s Financial Strength Rating (FSR) of “A++” offers further evidence that USAA’s financial outlook is stable.

Progressive has also received positive credit ratings from both agencies. The company has an FSR of “A” from A.M. Best, and Moody’s has given Progressive a credit rating of A2, which is also very positive.

Pricing and Discounts

The cost of a driver’s insurance premiums often varies due to considerations of age, gender, geographic location, and traffic law violations. Just as prices can go up based on certain factors, discounts can help drivers save money on their insurance policy.

Although not all insurance providers offer these to their policyholders, USAA and Progressive do. When comparing USAA vs. Progressive’s discount offerings, drivers will again notice some similarities.

However, USAA has targeted its discounts to appeal to its core group of policyholders: active and retired military personnel.

Multiple Vehicle YES YES
Multiple Policy NO YES
Vehicle Safety NO YES
New Vehicle YES NO
Teen Driver NO YES
Good Student YES YES
Student Away from Home NO YES
Completed Driver Training Course YES YES
Completed Safe Driving Course YES YES
Safe Driver YES YES
Homeowner NO YES
Annual Mileage YES NO
Vehicle in Storage YES NO
Family Discount YES NO
Length of Membership YES YES
Vehicle Garaged on Military Base YES NO
Sign Up Online NO YES
Receive Online Quote NO YES
Paperless NO YES
Pay in Full NO YES
Automatic Payment NO YES
Anti-Theft NO YES

After reading the above reviews and ratings and having the chance to compare USAA vs. Progressive, you should have a better understanding of how these companies compare to one another along with other major players in the auto insurance market.

Use this information to choose which provider is the best match for your insurance needs.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.