Progressive vs. State Farm: Which Company Is Best for You?

When you get behind the wheel, you need reliable car insurance to safeguard you, your vehicle, and your passengers. Progressive and State Farm are the top car insurance companies in the U.S. in terms of market share, according to National Association of Insurance Commissioners (NAIC) 2022 Market Share data. So, is one of them right for you?

State Farm’s average rates are as much as 23% cheaper than Progressive’s. It’s also the cheapest option in 36 of the 47 states where they compete — but that doesn’t necessarily mean State Farm will offer you the cheapest rates.

We compare both companies’ rates, discounts, perks, and customer reviews in the sections below so that you can decide which company is best for your unique needs.

Key Takeaways:

• The average Progressive customer pays $146 per month for full-coverage auto insurance, compared to $112 for State Farm customers.
• State Farm offers lower rates in nearly every category, including for teen drivers, seniors, and drivers without clean records.
• Progressive offers the lowest average rates for drivers with poor credit scores.

Progressive vs. State Farm: Which Has Cheaper Car Insurance Rates?

Car insurance rates aren’t a one-size-fits-all deal. They fluctuate based on your age, driving record, location, vehicle, and other factors.

To give you a rough idea of what you might expect to pay, we’ve compiled a table showing the average rates for each company’s liability-only and full-coverage options.

State Farm might be cheaper for teen drivers (and their parents). Progressive might be cheaper for drivers who struggle with their credit. We’ll dive into how age, driving record, credit history, and other factors affect each company’s rates in more detail below.

Compare Progressive and State Farm Car Insurance Rates by State

Where you live plays a big role in how much you pay for car insurance. Since insurance is regulated at the state level, each state has its own unique rules and requirements. This means average car insurance rates can vary drastically from one state to the next.

With that in mind, let’s look at how Progressive and State Farm stack up when it comes to average rates across different states. The table below compares each company’s average car insurance rates by state.

State Farm is in all 50 U.S. states and Washington D.C., while Progressive is in every state except Idaho, Missouri, and Wyoming.

State Farm is the cheaper option in 36 states (plus Washington, D.C.), although the companies are neck and neck in a few, like Illinois, Minnesota, and Montana, where average rates are identical or just a couple of dollars different.

However, the tables turn drastically in Ohio: State Farm’s average rates are over 3.5 times higher than Progressive’s. The average driver in New York, Michigan, and California also sees significant savings with Progressive.

Progressive vs. State Farm: Compare Rates by Driver Age

Age plays a big role in determining your car insurance rates. Young drivers often pay higher premiums because of their inexperience on the road (and their likelihood of causing collisions), while older drivers usually enjoy lower rates.

The following table compares Progressive vs. State Farm average rates by age group.

State Farm is the more affordable option in all four age categories.

The age groups above are good representations of various points in the lifecycle of insurance rates. For example, 18-year-olds tend to pay the highest rates, but rates start to drop by age 25, stabilize by age 40, and might go up or down at age 65 — depending on your driving habits, location, and other factors.

Which company has lower rates for young drivers?

Teen drivers aged 16 to 19 are involved in fatal car crashes three times as often as drivers aged 20 and older, according to the Centers for Disease Control and Prevention (CDC). As a result, young drivers tend to pay more for car insurance to compensate for the insurance company taking on more risk.

State Farm offers significantly more affordable rates for teen drivers than Progressive, on average — the average 18-year-old pays nearly 45% less with State Farm. This may be partly due to the discounts it offers students — like its good student, driver training, and student-away-at-school discounts. Parents with students younger than 25 are eligible for these discounts.

Which company has lower rates for senior drivers?

Senior drivers typically pay less for car insurance because they have more driving experience and tend to drive less. Insurance companies associate this with a lower likelihood of risky driving habits, leading to fewer accidents and claims.

State Farm takes the lead again when it comes to offering competitive rates to senior drivers, with average rates for 65-year-old drivers coming in 25% less than Progressive. The company offers discounts for drivers who maintain an accident-free driving record or go three or more years without moving violations or at-fault accidents.

State Farm vs. Progressive: Which Is Better for Drivers with Bad Records?

Your driving record has a significant effect on your car insurance rates. Insurance companies view drivers with a history of tickets, at-fault accidents, or driving under the influence (DUI) convictions as higher risk — which is often reflected in higher premiums.

We’ve broken down the average monthly rates Progressive and State Farm offer for drivers with different types of records — a clean record, one speeding ticket, one at-fault accident, and a DUI.

Which company is cheaper for drivers with a speeding ticket?

When you get a speeding ticket, insurance companies see this as a potential sign that you disregard traffic laws and are more likely to get in an accident. Insurers will usually charge you higher premiums than someone with a clean record.

On average, State Farm is more affordable, charging $99 per month for drivers with one speeding ticket, compared to Progressive’s average of $142 per month. Note that the rates shown are for liability-only policies.

Which company is cheaper for drivers after an accident?

An accident on your record can be a red flag for car insurance companies because insurers look at driving history to predict the potential costs of covering you in future accidents. Statistically, a past at-fault accident on your record increases your likelihood of being involved in another one. As a result, insurance premiums often spike after an accident — the average driver pays 44% more for car insurance after a single at-fault accident, according to Compare.com data.

State Farm is yet again the more affordable option, with national averages of $107 per month for drivers with one at-fault accident, compared to Progressive’s average of $162 per month.

Which company is cheaper for drivers with a DUI?

A DUI is one of the most serious driving offenses you can get. Insurance companies consider drivers with a DUI as more likely to be involved in a serious accident that could result in extensive damages and injuries.

State Farm is cheaper for drivers with a DUI conviction. The company charges an average of $119 per month for drivers with a DUI, compared to $140 per month from Progressive.

Progressive and State Farm: Compare Rates by Credit Score

Your credit history is another factor that insurance companies consider when setting car insurance rates. While your exact three-digit credit score isn’t something insurers specifically look at, they use your overall credit history to calculate something called a “credit-based insurance score,” which companies use to gauge your risk level.

People with good credit are generally considered more responsible and less likely to file an insurance claim — and they often pay lower insurance premiums.

However, it’s important to note that not all states allow the use of credit scores in auto insurance rating decisions. Currently, California, Massachusetts, and Hawaii prohibit insurers from using it to set rates, while several other states restrict credit history from being used to deny coverage.

Let’s take a closer look at how Progressive and State Farm rates change based on credit score.

Which company is best for drivers with good credit?

State Farm offers the lowest rates for drivers with “excellent” and “good” credit scores, which generally include a FICO score of 670 or higher. Its average rates for these two groups come in between 22% and 25% cheaper than State Farm.

Which company is best for drivers with average credit?

State Farm offers the most affordable rates for drivers with average credit, which is a FICO score between 580 and 669. The average driver with an “average” credit score saves around 25% with State Farm

Which company is best for drivers with bad credit?

On average, Progressive is less expensive than State Farm for drivers with poor credit, which is generally a FICO score below 580. Progressive bucks the trend here, offering average rates that are 10% cheaper than State Farm’s.

How State Farm and Progressive Compare for Discounts

You may qualify for discounts to reduce your insurance premium, but insurers base your eligibility on your driving behaviors or factors that correlate with lower risk for the company. For example, a safe driving discount might be available if you have no recent tickets or accidents on your record.

Insurers offer many different discounts, but the types and amounts vary between insurance companies — and some discounts might only be available in some states.

Let’s take a look at how each insurer compares for discounts.

While State Farm may offer cheaper average rates for a variety of different driver profiles, Progressive takes the top spot when it comes to the total number of discounts. Progressive boasts 13 different discounts, while State Farm lags a bit behind with eight.

Which Company Has Better Perks?

Beyond discounts, both Progressive and State Farm offer various perks that can potentially save you money or provide more value with your policy.

For example, Progressive’s “deductive savings bank” reduces your comprehensive or collision deductible by $50 for each policy period that you don’t have an accident or violation. Its Snapshot program — essentially usage-based insurance — uses a mobile app or plug-in telematics device to track your driving habits, potentially rewarding you with a lower premium.

State Farm also offers a telematics program. Customers who sign up for its Drive Safe & Save program use a mobile app or a connected car to track their driving and get a discount for enrolling. You may also qualify for additional discounts based on your driving habits.

What Do Progressive and State Farm Customers Have to Say?

Now, let’s look at how actual customers rate their experiences with Progressive and State Farm. The table below compares the overall review and rating scores for both companies, compiled from various trusted review sites.

State Farm comes out ahead on all three review sites, but by extremely slim margins.

Negative complaints about Progressive tend to come from people who feel the company offered low rates to gain them as customers but then charged higher rates at renewal without explanation.

When customers are happy with State Farm, they tend to point toward the company’s customer service and professionalism — especially when dealing with a claim.

Progressive vs. State Farm FAQs

Below, we address some of the most commonly asked questions about Progressive vs. State Farm to help you decide which insurer is best for you.

Is Progressive bigger than State Farm?

No. State Farm is bigger than Progressive in terms of market share — both in the overall insurance market and in the personal auto insurance category. It’s also the largest auto insurer in the insurance industry, according to the National Association of Insurance Commissioners.

Can you buy State Farm and Progressive car insurance online?

Yes. Both Progressive and State Farm allow customers to get quotes online and make online payments.

Does Progressive or State Farm handle claims better?

Progressive and State Farm boast about their easy claims process. While everyone’s experiences vary, many of State Farm’s 5-star customer reviews come from people who are happy about the service they received after a claim.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. National Association of Insurance Commissioners, “2022 Property and Casualty Market Share,” accessed September 14, 2023.
2. CDC.gov, “Teen Drivers and Passengers: Get the Facts,” accessed September 14, 2023.
3. National Conference of State Legislatures, “States Consider Limits on Insurers’ Use of Consumer Credit Info,” accessed September 14, 2023.
4. myFICO.com, “What is a Credit Score?,” accessed September 14, 2023.