My Experience With Progressive Insurance

I switched from State Farm to Progressive Insurance in February.  I did this because I got a price increase on my wife’s minivan from $52 per month to $71 per month due to rating changes within State Farm. That was going to cost me an extra $228 per year.  I got angry and decided to make a statement with my wallet. THAT IS TURNING OUT TO BE A BAD IDEA!

I had been with State Farm for 22 years for car insurance and almost 13 years for my home. Plus I have had life insurance through them and have a surety bond.  I felt betrayed. I went online to Progressive and did an online quote for car and home since you must bundle for the best discounts.  The car insurance came out significantly cheaper and the homeowner’s insurance quoted was about $150 more per year for the same coverage.  All together I was going to save more than $600 per year.  I called State Farm to give them a chance to match and they could not, so I decided to switch.

After making up my mind, I first added the car insurance.  Immediately they increased my rate from $384 to $435 per month.  The reasoning was I was in a wreck over two years ago.  I was not at fault, a SUV pulled in from of me on the highway and my car was a total loss. The other driver was responsible and was cited, but that still affected my rate. Even with the increase, I was going to save $294 per year.  I was upset, but that’s enough to still switch.

Next I added my homeowner’s insurance.  Progressive acts as an agent only, they do not provide the coverage.  They placed me with a terrible company, Homesite. I was placed in a policy and proceeded to go to State Farm to cancel my insurance.

I had always paid my home insurance through escrow; however, I made a $306 down payment and signed up for 9 additional $102 payments.  Yesterday (3/16/2017), I had a letter in the mail from Wells Fargo that they had paid my insurance premium of $1224.  I was immediately suspicious since I had set to not pay from escrow and Homesite just got double paid.  I called the company and they told me that is was to be paid through meand not escrow and they would refund Wells Fargo’s payment directly to me.  Then they told me that my policy was to be cancelled effective 3/27/17.  That is 30 days after I started the policy and I had not received any notice.  They told me they evaluated my home on 3/7/17 and I had to make certain repairs of my insurance was to be cancelled.  But, I had not been notified of this!

The problems were my right garage door had rot, my gutter was away from the house in one area and I had rot in that spot on the fascia.  I have locked and do not use that garage door and I replaced my other one with metal several years back.  I was in the process of removing my gutter, so I could replace that area of the fascia. The agent had gone in my backyard, which is enclosed with a privacy fence, and made the notes.  I had no knowledge or advanced warning they would be doing this.

Now I am scrambling to find homeowner’s insurance so I do not default on my mortgage per the contract!  

I am also worried about being listed as denied insurance on Comprehensive Loss Underwriting Exchange.  That will affect my ability to get other policies for my home in the future.  To combat this, I have started the complaint process with the Georgia Office of Insurance and Safety Fire Commissioner. There are specific statutes regarding non-renewals and cancellations.  I believe they fact I did not receive any written notice puts Homesite non compliant.

I will continue to update regarding my progress with Progressive and Homesite in the comments.

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