Progressive Insurance: That Name Your Price Tool
Progressive Insurance’s Name Your Price tool truly is catchy and may be used right on the company’s website. This online tool (found at www.Progressive.com) allows current policy holders or potential customers enter basic information about themselves and their automobiles, plus the price that they would like to pay for insurance each month. The Name Your Price then shows the available policy options (coverages, limits and deductibles) closest to the desired price. If a shopper wants to look at higher or lower cost options, he or she may just drag a sliding bar to the right (for higher rates) or left (for lower rates) and the available policy options change immediately.
Progressive first introduced this tool to a limited market in 2008, but now offers it large-scale. This is another effort to make insurance buying easier for the customer, and to make insurance costs more transparent to the consumer. Buyers really want to see for themselves how to get the best possible coverage for themselves, at the best price.
The primary benefit that we see in this Name Your Price tool is how quickly it shows how coverage options change policy rates. Sure, you can go through a range of different coverage options in a conversation with a traditional insurance agent, but it will take a lot more of your valuable time. Actually, speed is the only real advantage to using Progressive’s Name Your Price. See, people have been making their insurance policies fit their budgets since insurance began. The potential danger of using this tool is that there is no one to talk some sense into you when you opt to purchase coverage with a deductible that you could never hope to be able to pay or no first party coverages at all.
The cute commercials aside, Progressive cannot really give you a dream insurance policy for a teeny, tiny premium which is what we all really wish for. Insurance companies cannot give arbitrary rates or discounts. Insurance agents are required to use approved prices and discounts for policies based on the vehicle and driver being covered, as well as the coverages being purchased. The cost of policies is not only determined by the insurance companies, but by the regulations of the States that the insurance is being sold in. Rates have to be consistent in order to be considered fair, and even legal.
However, we do have to admit that Flo (Progressive’s ad girl) is just a treat. She makes us want to believe in that Name Your Price tool.