Posted On: December 24, 2008, 11:34 am CST

Posted By: flattened_lizard

Having a past working in the insurance industry, would just like to add a few comments.

It is in the best interest of insurance agents to want to get rid of any competition, so they are going to look for any reason to shut down progressive or any other company that (eventually) enters the market. However, shutting down there business is only bad for consumers who now have more choice.

Agents want to criticise progressive for not giving proper consultation or for changing limits/deductibles without explanation.
However, anyone shopping online can choose whatever they want. Some people know exactly what coverage they want by comparing to their current dec page. The internet is more convenient for these people. Plus, if there are any questions, they can always call their customer support line to get guidance by a licensed agent (most online sellers like progressive, geico, & esurances are open 24 hours---not the case for independent agents).

12 month policies is a law? That doesn't make much sense. Nobody is tied to there contract until the expiration date anyway. Anyone can leave their current company ANY time they want and switch carriers. Plus, if I am waiting for a violation to fall off my record, I am better off with a 6 month policy as my violation record can be re-looked at every new term (in this case 6 months sooner).

Just keep in mind that more options are always better for shoppers, and the more companies entering the market, the better it is for the consumer. Obviously another insurance company or an independent agent doesn't want a new direct carrier to enter the market, as it is competition.
So, consider the bias to their allegations and why they want progressive to get shut down. It is in their best interest and not yours.