LOS ANGELES, May 29, 2012 /PRNewswire/ -- A new report published by Automobile.com outlines the results of a commissioned survey examining the costs associated with annually insuring vehicles through GEICO and Progressive insurance companies. The study concluded Progressive customers pay, on average, 10.3% more for car insurance than GEICO customers.
In addition to the lower annual rates, those who were insured through GEICO were more likely to carry higher levels of protection and own newer vehicles. According to the survey, close to 20% of GEICO customers chose superior coverage (meeting or exceeding a 250/500/100* coverage standard) compared to only 10% of Progressive customers. The study concluded vehicles owned by GEICO customers are approximately three quarters of a year newer on average than those owned by Progressive customers.
While drivers can typically expect newer vehicles to carry higher insurance premiums, trends in car theft may play a role in the cost disparity between Progressive and GEICO. For instance, a National Insurance Crime Bureau (NICB) report shows only three of the top 10 most stolen vehicles were produced in the last 12 years, which may suggest that older models are subject to higher insurance costs if they are associated with a higher rate of theft.
"While we recommend drivers routinely compare car insurance quotes to ensure they are getting the best value and appropriate coverage regardless of who they are currently insured with, the survey results clearly favored GEICO policies," Automobile.com columnist Andrew Evans said.
Automobile.com recently began specializing in offering consumers free car insurance quotes for every make and model. The company is currently relying on exclusive industry-related studies and customer surveys as a means of presenting relevant car insurance articles and features aimed at saving consumers money. The site also encourages drivers to interact through Facebook, Twitter, Google Plus and Pinterest.
While the survey results favored GEICO, the Automobile.com report highlighted that Progressive appears to be taking measures to attract price conscientious consumers by offering new types of policies. From the site:
In an effort to appeal to budget conscious drivers, Progressive recently introduced a "pay as you drive" insurance option which bases premiums on the number of miles driven. The company is advertising this type of coverage as a way to cut costs for policyholders who drive less.
"We believe our customers can make the best decisions when they have access to accurate and timely information," Evans said. "We look forward to releasing many more of these cost comparison features, in addition to covering other important topics of discussion in the car insurance industry."
*For the purpose of this study, Automobile.com classified superior coverage as meeting or exceeding: $250,000 bodily injury liability for an individual, $500,000 bodily injury and $100,000 maximum property damage liability in a single accident. This type of coverage is typically displayed as: 250/500/100 or $250,000/$500,000/$100,000. For more information, visit http://www.automobile.com.
Disclaimer: The data included in this Automobile.com press release is sourced from several public and private institutions in addition to consenting user responses through commissioned surveys. Automobile.com makes no warranty or guarantee of the authenticity, accuracy or permanence of any facts or figures included in the aforementioned press release as it is for informational purposes only. Some facts, figures and metrics are estimations based on observations or conclusions from public and/or private sources.