Insurance plays a crucial role in our lives. It provides us security, protection, and coverage from future incidents. The two most renowned insurance companies in the USA are GEICO and Progressive. Both the companies provide various insurance policies in domains like home, auto, renters, and other commercial purposes.
GEICO vs Progressive Home Insurance
The main difference between GEICO and Progressive Home Insurance is that GEICO does not provide home insurance riders while Progressive provides home insurance riders on the home insurance policies like water bag coverage, flood insurance, and others.
The GEICO insurance company was founded in 1936. The founders of GEICO are Leo Goodwin and Lillian Goodwin. It is a private insurance company. The headquarters of the company is in Maryland, United States.
On the other hand, the progressive corporation was founded in the year 1937. It was founded by Jack Green and Joseph M Lewis. It is a public insurance company. The headquarters of the company is in Mayfield Village, Ohio, USA.
Comparison Table Between GEICO and Progressive Home Insurance
| Parameters of Comparison | GEICO | Progressive Home Insurance |
| Year of establishment | 1936 | 1937 |
| Policy underwriter | GEICO is the underwriter of its policies | Progressive home insurance is not an underwriter of the policies offered |
| Type of insurance company | Private | Public |
| Advantages | The coverage rates are affordable, the policyholders can excess live chat feature, and the company provides discounts on car insurance for federal employees and military personnel | Access to various online tools and resources, availability of 24/7 customer service irrespective of holidays, and the company provides unique personal policies in various domains |
| Disadvantages | The coverage options provided in GEICO are limited, and only a few discounts are available on policies that are non-auto insurance-related | Progressive home insurance does not provide any live chat feature, the rates of the policies are higher, the availability of certain discounts and coverage is limited depending on the region |
What is GEICO?
GEICO is a private American insurance company. GEICO stands for Government Employees Insurance Company. It is considered the second-largest insurer in The United States. The CEO of GEICO is Todd Combs. The company was founded in the year 1936. It has over 40,000 employees. The founders of GEICO are Leo Goodwin and Lillian Goodwin.
The insurance company uses the slogan “real service, real savings” for its advertisements. The headquarters of the company is in Maryland, United States. The parent organizations of the insurance company are our national indemnity company and Berkshire Hathaway. The company has an online process for signing up. There are various local insurance agents also who sell the policies of GEICO. They are known as GEICO field representatives.
As home insurance policies, the company also covers other risks like personal liabilities, medical bills, and additional expenses that are experienced during a loss or accident. The policies covers natural calamities like nuclear hazards, earthquakes, and other maintenance issues like broadens, termites, mold, and other insect damage.
Apart from the regular home insurance, GEICO also provides other types of property insurance like renters insurance, condo insurance, mobile home insurance, and others. The insurance rates are affordable and can be quoted and switched accordingly. The policies cover properties like appliances, furniture, dishes, and even clothing that are damaged or stolen during the incident. There is limited coverage for jewelry also.
What is Progressive Home Insurance?
Progressive cooperation is a public insurance company in the United States. It is considered as the 3rd largest insurer. The headquarters of the company is in Mayfield Village, Ohio, USA. The company has over 43000 employees. It was founded by Jack Green and Joseph M Lewis in the year 1937. Progressive Cooperation covers three major segments that are commercial auto, personal lines, and other indemnities.
The company provides various riders that can be added to the home insurance policies for enhanced protection. The riders are water bag coverage, flood insurance, and even personal injury coverage. The insurance company is known for its 24/7 customer service even on holidays. Initially, the insurance company was known as Progressive Direct and was later rebranded as the Progressive Corporation in the year 2011.
The company provides the feature of the quote in advance so that the homeowners can plan and save accordingly. It also has add-on features like alarm systems and safety devices which can be qualified at discounts. Even new homeowners get a discount at the policy rates. The standard coverages provided by the company include dwelling coverage, loss of use coverage, personal liability coverage, and personal property coverage.
The claims processing of the insurance company is carried out on the phone, online, or through the mobile application. Progressive have multi-policy services and paperless systems. It also has a single deductible system. The insurance company also has a gated complex or community.
Main Differences Between GEICO and Progressive Home Insurance
- The policies of GEICO offer the lowest rates while the policies of Progressive Home Insurance are usually of moderate to a high rate.
- GEICO operates through online signup processes while Progressive operates through a network of insurance agents who are usually independent.
- J.D. Power U.S. Study of Auto Claims Satisfaction in 2020 scored GEICO as 871 out of 1000 and Progressive 856 out of 1000.
- NAIC Complaint score for GEICO is 1.70 and for Progressive Home Insurance is 1.69.
- The AM best rating given to GEICO is A++ and to Progressive Home Insurance is A+.
Conclusion
Home insurance is also termed homeowners insurance. The policies for the property insurance covers private residences. The policies provide coverage for damages and losses within the residence and other assets of the home. Home owners insurance policies are mandatory for mortgage lenders.
The two most common insurance companies are GEICO and Progressive Home Insurance. Both the insurance companies provide various policies across several domains. Both the companies are known for their excellent customer services. The customers should read all the terms and conditions of a policy before investing.
References
- https://www.leg.mn.gov/docs/2015/mandated/150992.pdf
- https://www.emerald.com/insight/content/doi/10.1108/case.darden.2016.000241/full/html