Progressive Insurance Premium Went Up After Fixing My Driving Record to Show No-Fault

Insurance Forum Auto Insurance
1

Pretty much what the title says.

I applied for auto and renter’s insurance with Progressive recently in Johnson County, TX. When entering my information, I misunderstood the wording about an accident I had back in October 2018, and accidentally marked it as “at-fault.” My premium was around $120 a month, but having that incorrect at-fault on my record bothered me, so I called to correct it to no-fault.

They updated it, but now my premium went up by $12 to around $130 a month. I spoke with customer service for over an hour, and they said there was nothing they could do. According to them, at-fault accidents cost more but fall off quicker, whereas no-fault accidents stay on the record longer and can affect premiums in different ways. I get that pricing varies, but nobody could explain why a no-fault accident ended up increasing my rate, so I was hoping someone here might have an idea about this policy.

Has anyone else experienced this or know the reasoning?

2

Honestly, you’re lucky it only went up by $12. You can either accept it or check out other companies.

3

Raine said:
Honestly, you’re lucky it only went up by $12. You can either accept it or check out other companies.

Yeah, I get that it’s not a huge increase. I’d just like to know why no-faults stay on the record longer than at-faults.

4

@Arin
It’s just how Progressive rates their policies. Just because it’s no-fault doesn’t mean it isn’t counted against you.

5

Raine said:
@Arin
It’s just how Progressive rates their policies. Just because it’s no-fault doesn’t mean it isn’t counted against you.

I get that, but I’m just asking about the reasoning behind that decision. Why is no-fault rated higher or held on longer than at-fault?

6

@Arin
It’s likely because Progressive’s data showed that people with a no-fault accident in the past have a slightly higher chance of filing another claim. The state may also have different rules on how long they can rate at-fault vs. no-fault accidents. We’d have to ask an actuary at Progressive to get the exact reasoning, but that’s the general idea.

7

@zaddockhearns
That makes sense, thanks. I was just curious if there was a reason I was missing. It’s reassuring to know there’s at least some logic behind it.

8

It’s not a super satisfying answer, but the rule likely exists because the data support it. Actuaries find patterns, even if the reason behind them isn’t immediately obvious.

9

Zhi said:
It’s not a super satisfying answer, but the rule likely exists because the data support it. Actuaries find patterns, even if the reason behind them isn’t immediately obvious.

True, but it’s still a much better answer than “just because.” Thanks for helping me understand. I was wondering if it was based on some obscure stat or something, since even the reps were saying my rate would either stay the same or go down.

10

I worked at Progressive, and this happened sometimes. What I heard was that no-fault accidents can put you into a different rating factor, meaning they rate it differently because even no-faults still cost money. In some states, we wouldn’t even take people with a certain number of no-faults. Hope that gives a little insight.