Warning: Progressive Insurance Scam

A yacht club acquaintance is a marine surveyor who does mostly independent insurance claim work. He told me (off the record of course) that Progressive is the worst when it comes to paying claims. They do anything to get out of paying legitimate claims. On the other end of the spectrum is BoatUS who he said was very fair and nice to deal with. He warned me to avoid Progressive for boat insurance.

Norseman, thank you for letting us know.
My car is insured by Progressive, and yes they hike my rate because of a speeding ticket. The first one in many years. Normally I get pull over because I don't go fast enough Just kidding.
But they said it is legal to hike the rate if I have a violation. So I paid and shut my mouth.
I will get a closer look at the competition.

WTH does your credit score have to do with your ability to safely operate a car??? What doesn't make sense, are that banks, insurance companies, etc raise the rates on people that have the least ability to absorb a hike. Therefore they have a customer, that in the past always paid on time, that now finds it difficult to afford the coverage......... I just don't get it It's like they make it a self fullfilling prophecy

Actually, credit score has a lot to do with how you drive. People with lower credit scores have more accidents and claims. It shows a careless nature (yes I know it can be due to an one time, unfortunate circumstance). How many people with 3 DWIs do you find with good credit also. It also indicates how long you'll live and how healthy you'll be during that time ( Life & Health Ins premiums). Did you also know that a credit card customer who pays his account in full is considered a "deadbeat", because they can't make money off them. The later you are, the more you're liked.
I went with Progressive a few years back when my wife got rear-ended and the guy who hit her had them. All our experiences since then have been good. Who knows if they're the cheapest this year.
Before them I had Allstate. 30 years of boats, many cars and several houses. Then one day they decided to dump me because the house I've been paying premiums for 20 years on was 1 mile from the beach (100 year flood model).
They're all lousy blood suckers.

Credit score is a measure of responsibility, also a measure of risk. Insurance is basically charging you on your risk factor. If you're hurting for money, you may do an insurance job on the vehicle because you are upside down on it, or stage an accident. I don't know.

They all play the raise the rates game. My credit is outstanding, no tickets or accidents, etc...... Had esurance for years, then one renewal was 25% higher.......switched to Allstate which was lower then I was paying before the rate hike with Esurance......next renewal......10% raise......

Blocking your credit report is something I'm only vaguely familiar with, but I'd have to guess that, when you sign up for insurance, one of those million lines of small print authorizes them to check your credit report. They would never issue the policy without that.

I have to diagree.......it's the same as saying that Catholics are more likely to have acidents vs Jews. Or Repulicans are more likely to have accidents vs Democrats. How about obese people are more likely to have accidents vs a wt appropriate individual. Rates should be based on your driving record PERIOD!........what better barometer of your skills is there???
I'm sure you could do studies, that on the surface will yield the rusults you desire,...........but are they true indicators??? Would you agree that a poor credit score is an indication of your navigational skills as a captain??? I think it's just another excuse to raise rates and reap greater profits.

You'll have to argue that with the Insurance Institute. They are masters of the probability and mortality studies. Would you disagree with the fact that drivers under 25 are more likely to have accidents or would you wait for them to individually have accidents and raise the rates on them only after the fact? These are all "indicators", not across the board facts. Screw up your credit and try to get a lease. Even if you haven't stiffed a landlord it indicates that you're more likely to do it. Try to get a job. Even if you've never stolen it's an indicator that you are more likely to. As for the captain's skill, yes, I would not hire one who had collectors calling. He's more likely to be irresponsible, a drinker or distracted if he doesn't pay his bills. Credit is everything today.

Absolutely. That's why they have one of the largest lobbying efforts in Washington and every state capital. Insurance companies are in the business of making money not risk management. That's why my insurance stocks are the only ones that didn't go into the toilet these past few years. Don't expect fairness. That's not their business. And don't expect to get the cheapest insurance unless you change carriers every 6 months becuase the cheapest today will not be the cheapest tomorrow. That too is part of the game.

Hi,

I could see this being a possibility in some parts of the world

There is another corollary at work here, which I will call The Dope Theory:

Seems like every so often, the bank wants to lower the card credit limit, or, yes, the insurance company wants to give you an extra little reaming...oh, and the rebate for that 97-inch flat screen you just bought never gets sent in, 'cuz....you...were...a dope.

In my humble opinion, a lot of companies assume that, because you are a dope, they can augment their income knowing you won't care or be careless. Or just will not take the time.

It is the Norsemen of the world, likely them's who have a good credit rating, count their pennies, and who get royally hacked off at a perceived screwing, and then take the time to take to task those cork soakers with a phone call--yes, to the supervisor and maybe higher--to get satisfaction.

Dopes get what they deserve.

Uh, you might want to take a lesson on how to effectively complain. It's even possible that your problem lies with a credit bureau which failed to block access. (You did block with all 3 right?) Still, it sounds like your answer is one phone call away between 0800 and 1950. Try with a friendly 'I don't understand your reasoning in this', and save the 'YOU MUST BE ON CRACK' until you get up with the supervisor's supervisor. And try to remember that the person you're talking with didn't make the decision, and has limited power to resolve the situation. You could have to climb the ladder.
Also, have you run your credit recently? It's not hard to get someone's card number and go to town before they know.

Thats part of the problem, as a guess. Too many loans, too many credit inquiries (from said loans), and acquiring a lot of debt quickly (mortgages), and having a lot of new debt versus income or new debt versus old debt........

You hit the nail on the head. Each application you fill out drops your score. Each loan you receive lowers your credit score (because you're moving closer to your line). Multiple apps for loans in a short period lowers your score, etc. That explains the credit score. Now about how they accessed your....Just got a thought. When you block your credit report, does that block your credit score? I don't know myself, but you may have gotten your answers. As for why Progressive didn't have the best rate, as I said earlier, this year this guy has it and next year that one does.
BTW, I'm content with my dealings with Progressive, but I don't give a c--p about them. Just want to help lower your blood pressure. As I said earlier, "They're all lousy blood suckers."