So, are they increasing premiums on renewals or immediately? It seems to me they can't just increase your premium mid-term. If it's going up at renewal, it's time to shop for another carrier.

I was a progressive customer and they raised my premium for no reason. when i asked why, they said because rates for your zip code have gone up. When i asked what changed in my zip code, they did not have answer. I live in safest place in Fairfax county. I changed to GEICO. Progressive is good when you sign up as new customer, but wait for 6 months and see the reality

Progressive is also behind the idea of putting boxes in their customers cars to monitor how often they drive, how fast they drive and how often they hard brake.

Stuff like this makes me glad I sold my car awhile back and just take public transit.

Back when I was a Progressive customer, they did something similar to me a few years ago. They just arbitrarily raised my rates with no explanation.

Does this mean I can't get my big tricked out name tag?

Are you sure this isn't a little insurance joke? Really little? There it goes...

Premiums would only increase on a renewal or a new policy and they may or may not affect her. My suggestion is to wait and see what she is quoted at renewal and then make a choice at that point. There are things in place that may prevent her from being increased 20%, especially if she has a clean driving record.

@jasonof2000: So a GPS unit? If you're that paranoid, you can slap some aluminum foil on it. Or get a GPS jammer.

If you live in California or Oregon and have a good driving record check out Wawanesa at [www.wawanesageneral.com] They are a Canadian company (US office is in San Diego and they are fully licensed in CA and OR) that does direct sales only, no agents. When our last policy was up for renewal I did some online quotes from other companies and they all seemed to be comparable to Wawanesa, until I realized that Wawanesa's policy was for 12 months and everyone else was for 6 months.

We've made 3 claims, including an uninsured driver, and they paid with no hassle. The downside is that they don't have a large network of contracted body shops--there's only one in the entire San Fernando Valley. You can take it anywhere for repairs but it takes longer because they have to send out an adjuster, as opposed to their contracted shop where they just fix it.

We also have our homeowners with them but I couldn't say if it's competitive because I haven't shopped around since we bought out house 8 years ago. It's only about $500/year though.

@jasonof2000:

Seems pretty reasonable - they're trying to get better data to align pricing with risk, and somebody who drives a lot, drives fast, and slams on the brakes a lot, is going to cost more in insurance costs over time vs. someone who does none of these.

@Wowwee, a Zeppelin! SteveDave: I am getting so tired of insurance commercials in general...

I'm not sure what Progressive's deal is, but I know Allstate had issues with call center reps incorrectly rating policies or 'fudging the numbers' to get a certain price to sell more policies. Their corporate offices threatened to take away their licenses for FL and NY, and to make up for the incorrectly rated policies- and the increased number of claims, they changed their rating structures. Insurance companies, just like any other company, often best serve a target demographic. You just have to figure out which demographic you are and which company caters to the market segment you are in. I'm not sure why this is, but I'm guessing it has to do with State Farm having the lion's share of customers insured with them, so the other companies specialized in certain situations and demographics. When I say demographics, I don't necessarily mean hip young 20 somethings, but rather what kind of risk profile you have. The OP sounds squeaky clean so I'd take a crack at State Farm(with a good agent), Amica, or if she can get in, USAA.

Now that I think about it more, I remember reading something on Progressive that one of their business strategies was to attempt to rate the risk of a driver as accurately as possible, so that if someone else was to offer them a lower rate on auto insurance, it would to the other company's detriment and that driver would certainly cost more to insure (through claims and such) then their policy would bring in. This was about a year or so ago, and I remember reading they were only bringing in something like 25 cents of profit for every dollar of premium collected.
Perhaps their model was off? Perhaps this is a response to the failing economy. Maybe their increase in premium is an attempt to offset a short fall in their company investments so they can stay profitable/liquid enough to pay claims? It's just my best guess at this point.

(Disclaimer: I'm for the most part speaking in generalities, and there are always some exceptions to these statements.)

@Wowwee, a Zeppelin! SteveDave:
Uhhh yes, I was looking to get coverage on my sl- uh I mean vehichle?

Ho! Ho! Ho! err I mean hahaha.

Allstate did the same thing to me. My last premium increased, yet I'm a year older with a perfect record. Never an accident, never a speeding ticket.

I called and their answer was the increase was for my area, since accidents had increased. Well guess what? I'M NOT OTHER PEOPLE.

@cynical_bastard: I just put it on mute when Progressives come on, b/c I think Stephanie Courtney is kind of cute. Better than the newer Geico ones and All-State.

@Blaaaah: I like cashmere socks!

Maybe because they lost $1 billion just in the last quarter alone because of investments?

[blog.cleveland.com]

That's the thing about public companies - they invest on the spot - whatever they can do to please short term investors. I'd plan for the future and screw the short term gains - invest where you are in it for the long haul and you won't lose your butt as much as everyone else.

@JustThatGuy3: I'm not letting you violate my privacy just so you can get your data. I know how I drive, thanks.

If you want to play that game, I'll get another carrier.

F*ck Progressive. If you live in NY and have a super clean license, check out New York Central Mutual in Edmeston, NY (my hometown ironically)

I had them for about a year and 1/2 back in 2003-2004, they wanted $2400 a YEAR for full coverage on my '96 Jeep Cherokee. My driving record was immaculate, but my credit was crap so they raped me there. My mother (Who used to work for NYCM) said I should try going to Gates-Cole Insurance and getting a quote - It went from $2400 a year to $800. WTF. And this company lets you pay every OTHER month - I have an 02 Saturn Vue and a 97 Ford F150 XLT with FULL coverage for $130 every other month - But if you have a shitty driving record, don't even try them, they are incredibly picky about who they insure.

@verucalise: Geeez, get it together- I just realized how confusing I wrote my post. New York Central Mutual doesn't directly sell insurance, you have to go to one of their agents. It's worth just calling for a quote, TRUST ME. I can't believe how cheap my insurance is.

@jasonof2000: Your comment is VERY misleading. It's my understanding that Progressive is doing this only for people who want this option, as it SAVES the customer $ with lower premiums - i.e., safe drivers or people who say they drive low miles. Yeah, what a horrible big-brother company, offering their customers a voluntary way to save money......?

My Esurance policy comes up for renewal mid January and I got an email from them... The last 2 years, we got small rate increases for the same reason - cost of doing business in NY (NYC?)... This time it dropped by approx 20%.

@Wowwee, a Zeppelin! SteveDave: I watch Pregressive commercials just to see Flo. I get my insurance from Geico.

@shinseiromeo: For insurance purposes, you ARE other people. They only know you by your demographics.

@Wowwee, a Zeppelin! SteveDave: i do that too. she reminds me of lauren graham (who i also think is pretty cute), which is ironic, b/c i have to mute just about everything she's in (except bad santa, of course).

@Wowwee, a Zeppelin! SteveDave:and @Wowwee, a Zeppelin! SteveDave: She is definately cute. She makes the new Progressive commercials bearable.

@9900dude: BINGO! when an insurance co. makes a killing on the market, your rates don't go down, but when they get hosed, your rates are sure to go up.

what a racket.

I'm guessing either a bill they didn't like just passed or is up for a vote. Then they can pretend that, say, consumers shouldn't support a bill forbidding insurance companies from kidnapping your children for ransom, because It Raises Consumer Prices.

Their system probably auto-sends that exactly X months before your next renewal. I bet her renewal is on the 25th of Jan, Feb, or Mar.

Progressive is an awful insurance company. When I started with them several years ago, they NEVER offered me quotes from other companies like they advertise on TV. They also don't do a very good job of educating their customers. When I had Progressive insurance in early 2003, all I had was liability insurance on this hold heap that I was driving at the time. The old heap caught fire one fine morning in March just in time for my next bill to be due. I called Progressive and told them what happened and that obviously, I would not be needing insurance on myself for a while and that the insurance policy belonging to my friend who had lent me the use of his second car would cover me for the time being. They cancelled the policy without bothering to mention the consequences of doing so. Admittedly, I should have asked but they never told me that canceling my insurance would likely result in a huge penalty when I came back to get insurance on my next car. A month later, I called them to start a new policy on the car that I had just bought. I was looking at a huge rate increase because of that 30 day lapse -- an increase that I would have have seen had they advised me not to cancel. After that, I moved over to Nationwide Insurance. They have been my insurance provider since then. I still had a large penalty but, my rate went down with each renewal. In the end, I'm still partly to blame but, Progressive still could have take the time to educate me. I might still be a customer now if they had done so. In the end, I distrust all insurance companies. I have been driving since 1986 and I have never had an accident. Insurance companies don't do a very good job of rewarding for that.

@Wowwee, a Zeppelin! SteveDave:

I've kind of got the hots for the blond chick in the Geico ad where the caveman and his girlfriend are walking along the beach.

I really need to get a girlfriend.

@hillsrovey: It's the same knee-jerk reaction people have to dealerships who will let you lease a car w/crappy credit, but you install a box which will kill the car if you don't pay the bill. It's really win-win as if you pay your bill, they never turn it off, and your credit improves. If you don't pay, the dealer gets his car back w/o having to release the hounds.

@madanthony: Ditto. On needing a girlfriend part though. I usually turn the caveman commercials off, b/c I flashback to the time I watched Encino Man when I do.

@mac-phisto: Gizmodo had Bad(der) Santa listed in their Dealzmodo the other day. I picked it up on DVD for 3.99.

@hillsrovey:

No it isn't. It won't be long before these devices are mandatory to hold a policy.

Try the Costco plan if you are member. We switched from Progressive to them and saved about 40%, even with the 3 speeding tickets that we still had on our history.

Progressive was terrible - we had a claim back in 2001 and they raised the premium dramatically (over 50% right away and about 10% every year after), so they had essentially recouped about 2x the claim amount by the time we switched.

"According to an Email received by reader Jessica, Progressive Auto Insurance is increasing rates for New York Customers but nearly 20%."

Isn't the New York government raising taxes on things like...well, everything?

@jasonof2000: Really? Will they also repair them when they break/malfunction? It sounds like it could happen, but once you take off the tinfoil hat, the logistics become mind boggling. How do they get the info? Do they make you plug your car into a USB port? Do they send someone to your car every month to use their "master remote" to open your door and plug a laptop in? Is it an aftermarket add-on? If so, what happens when it fries your onboard CPU during installation? You can't use your insurance to cover it, b/c you don't have insurance until you install it. Seriously man, give us some more info!

there are tons of better rates available than progressive. go to www.esurance.com for some quotes, then go the quoted companies for a requote. I was able to get a huge discount on better insurance this way.

glad i live in nyc and don't have to worry about a car!

NY's AG is so going to love to sink his fangs into this one.

Get ready for the bloodshed folks.

@JustThatGuy3: Sounds like state lawmakers need to put the kibosh on these bullshit insurance tactics. I'm sick of the insurance companies using gimmicks to screw the consumer!

@jiminator: Not necessarily. It ALWAYS depends on who you are, what your record is, and where you are. Esurance was garbage for me, being about $800 for 6 months of the Michigan state minimum. Progressive Drive was only about $400 (Went up to $500 due to an accident which they didn't even have to pay anything out on, but even then they were cheaper by far). Hell, Allstate wanted $1200 for the same, and the bastards at Farmer's Insurance wanted a whopping $1600 for six months of minimum, we'll-never-actually-have-to-pay-anything-out insurance.

About 5 years ago with my previous car, it was the same deal. On average everywhere wanted about $800-900 for state minimum, and Prudential wanted only $400-500.

You really just have to do the shopping around between all the options available to you, as a company that's dirt cheap for a friend of yours might hose you horribly due to being in a different age bracket, gender, driving record, etc. outside of their specialty demo that your friend falls into.

the main point is that you have to be willing to shop around, and look at all the avenues available to you. I suspect that some insurance companies are raising their rates to compensate for losses on their mass gambling with credit default swap schemes, and as a result many other insurance companies are taking the same opportunity to raise rates. Most people will follow along, being loyal customers and all. The best way you can speak out about this practice is to put your money with someone else.

I rates went up last month too! I am using Allied. I called to ask about this, Because I have a perfectly clean record, and I am almost 24 to boot. They said that it was a State related markup, and not there fault. "More people hit deer in your area, or something like that" she says, attempting to give a reason.

I asked for the legislature showing it is a state related issue, and not a company markup. She looked, and called me back telling me she couldn't find it.

I have yet to find a Car Insurance company that does not hike up rates after your current contract agreement is up.

It is really starting to get to me that so many of our dollars are being taken away from us via unconstitutional methods. Hell, there is no law saying that we are required to pay Federal Taxes, but yet we are jailed if we don't file. Go watch "America: Freedom to Fascism" It will make you want to stand up against this growing evil in our country.

@EBounding: Well played and a big affirmative from your friendly neighborhood NYer.

@Nighthawke: All Hail Andrew Cuomo.

Ahh, finally a subject I know a little about.

In reference to the article, I couldn't agree more that the timing of the rate increase sucks. I wouldn't expect Progressive to give their policyholders a free month of insurance or anything, but seriously, a rate increase on Christmas day?

I work for another large insurance company not mentioned so far in the comments (which will remain anonymous so I can stay employed). From being in the field for 5 years and having taken my state's license exams I know a few things about the industry. First off, insurance is a highly regulated industry. There is only one state I know of where insurance companies can just file a rate plan with the office of the insurance commissioner and put it into effect without it being reviewed. In essence, a company has to submit their financials to the commissioner and be approved if they want to make a rate change. This is intended to keep things fair, keep the company solvent (meaning it has the funds to pay its claims without resorting to the state bailout funds) and prevent discriminatory treatment. Companies cannot freely jack up their rates whenever they feel like it. I don't know personally, but I would be willing to bet that NY being as mired in red tape as it is, rate increases there are probably subject to a lot of review.

Insurance companies that don't underwrite their business effectively have to take bigger rate hikes than companies that are tighter as far as what risks they take on. Since liability, medical and repair costs almost never go down, don't expect rates to either. That's not to say they never go down, but that's a 1% of the time kind of thing. Sucks, but that's the way it is. Beats having to pay out $100K if you have an accident and hurt someone.

As for the naysayers on the pay-as-you-drive programs, like has already been said, those are strictly voluntary. They will never be mandatory. It is not some big brother, 1984, we're watching you even when you pee kind of thing. There are benefits to good drivers, and the program our company is piloting will allow parents to keep track of kids' driving habits. This will actually help keep kids from driving stupid and thus lower costs all around as they are one of the highest risk categories. There is much more detail about privacy rules and how they play into all of that but I have gone on too long already.

@Karl Kvalvik: It is a state related issue. They're losing money in your state, so up go premiums.

@Karl Kvalvik: With USAA, my rates went down on my last renewal, even though I had switched to a "riskier" vehicle (SUV) about a month before it. Plus I got a dividend. I only pay like $178 per 6 month term on my SUV and I'm only 19. USAA rocks!

Don't get me started on Progressive. My wife was rear ended while stopped at a stop light a few weeks back. We've been customers for 7+ years now and this was our first incident so I did not know what to expect.

I dropped the car off at the local service center and Enterprise on-site gave me a rental car until it was fixed as I have the rental car reimbursement. I went over the rental vehicle very well as I know Enterprise can be anal.

A week goes by and they call me to pick up my car. First there is some white paint type substance all over the interior of the car. Steering wheel, door, console, dashboard, etc. Second the paint in the area does not match the rest of the vehicle. Being Galaxy Grey (metallic), you cannot just paint the broken pieces you have to blend it in or it looks odd. Progressive says it is as good as it gets and the white paint type substance was there when the car was dropped off! whiskey tango foxtrot!

Then things got even better. Checking in the rental car went normal but then a couple weeks afterward, I get a bill in the mail for $499.94 of damage to the roof. That car was in the same pristine condition it was when I received it. I called the repair shop that did the "estimate" and they said it was as if someone jumped on the roof. I know for a fact the roof was in perfect shape when dropped off. Enterprise says if I do not pay they will send me to collections.

Two lessons learned. DO NOT use Progressive or Enterprise. If you have to use Enterprise, get the insurance.