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Allstate Car Insurance vs. Progressive Car Insurance: Which Is Better in 2021?

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Allstate Car Insurance vs. Progressive Car Insurance: Which Is Better in 2021?

Progressive isn’t the cheapest car insurer, but it is often far less expensive than Allstate. Both companies received middling grades from their policyholders for service and claims handling.

Progressive insurance comes in at number seven out of the nine companies in our ranking, while Allstate lands at the bottom.

In this comparison, we’ll show you what Allstate and Progressive can offer in the areas that matter most when you’re shopping for car insurance. We’ll examine pricing as well as customer service.

Customer Satisfaction

Allstate

U.S. News Overall Rating

Progressive

U.S. News Overall Rating

According to our survey, customers of Allstate and Progressive put both of these companies in the lower half of our rankings, with similar scores for customer service and claims handling.

An Allstate customer summed up the feelings of many respondents by writing, “I am somewhat satisfied. The insurance is high… and sometimes it takes them awhile to get to you.” But this respondent went on to say that their agent answers questions quickly and had been helpful during the COVID-19 pandemic. Progressive customers had similar feedback: “They took care of me with no problems. Pricing may be a little high, but it’s well worth it.”

Customers weren’t kidding when they noticed those higher rates from these two companies. Allstate has the highest rates for almost driver demographic in our study, making it the overall most expensive insurer in our rankings. Progressive’s rates are among the most expensive in the study, as well. When comparing only the rates of these two companies, Progressive always has the lower rate, but there are several other car insurers who have lower average rates than Progressive in every category.

Read our full Nationwide review »

Read our full State Farm review »

Allstate vs. Progressive: Pros & Cons

Allstate

    • Highest average rates overall

Progressive

    • Easy to contact customer service

    • Low average rates for drivers with a DUI

    • More expensive than most other insurers

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Which Is Cheapest?

Progressive car insurance lands in the middle of our ranking, with an average annual rate of $1,334. That’s about 50% higher than the average rate for USAA, which is the cheapest insurance company in our study. But it’s only about 1% higher than the industry average of $1,321.

Allstate has the highest overall average rate, at $1,788, among the insurance companies in our study. That’s about 35% higher than Progressive’s rate and the industry average.

In other words, customers in search of cheap car insurance probably should avoid both of these companies, though Progressive’s average rates are better than Allstate’s.

Which Is Cheapest for Men?

 

Allstate

Progressive

Industry Average

25-year-old male

$1,994

$1,635

$1,554

35-year-old male

$1,740

$1,237

$1,278

60-year-old male

$1,679

$1,126

$1,183

Younger drivers typically have the highest rates, and this holds true with both of these companies. For men at age 25, Progressive’s rate of $1,635 is 18% lower than Allstate’s, but it’s 5% higher than the industry average for this group.

According to our study, Progressive’s average rates for men of all ages are lower than Allstate’s.

Progressive’s average rate for a 35-year-old man is $1,237, which is 29% lower than Allstate’s rate of $1,740 for this demographic. The Progressive rate is also lower than the industry average by about $40. For 60-year-old men, Progressive’s rate is $1,126, which is again about one-third lower than Allstate’s rate. For this group, Progressive’s rate is about $60 lower than the industry average.

To find these average rates, we created driver profiles for men in each of the following ages: 25 years, 35 years, and 60 years. The profiles have a clean driving record, 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Women?

 

Allstate

Progressive

Industry Average

25-year-old female

$1,920

$1,605

$1,487

35-year-old female

$1,760

$1,302

$1,274

60-year-old female

$1,635

$1,101

$1,149

Rates for women drivers tend to be slightly less expensive. However, in some cases, the rates for women are higher than they are for men, as each insurance company determines its own risk profiles for each group.

Progressive is again less expensive across the board for women. Its average rate for 25-year-old women, $1,605, is 16% lower than Allstate’s rate of $1,920, but it is higher than the industry average of $1,487 by 8%.

Allstate and Progressive both have higher average rates for 35-year-old women than men of the same age. Progressive’s rate of $1,302 is still lower than Allstate’s by about 26%, and it’s above the industry average by $78. For 60-year-old women, Progressive’s rate of $1,101 is a third lower than Allstate’s rate of $1,635, as it was for men. This time, Progressive’s rate is also lower than the industry average, but only by about $50.

To find these average rates, we created driver profiles for women in each of the following ages: 25 years, 35 years, and 60 years. The profiles have a clean driving record, 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for High Mileage?

 

Allstate

Progressive

Industry Average

12,000 miles annually

$1,788

$1,334

$1,321

One of the factors that determines car insurance premiums is how much you drive. If you drive more than average, your rates will likely be higher, and if you drive less, they could be lower. It’s typical for Americans to drive about 12,000 miles a year, so we started there for our analysis.

As in most categories, Progressive has a lower rate than Allstate, according to our study. Progressive’s average rate of $1,334 is about 25% lower than Allstate’s rate of $1,788. The industry average of $1,321 is nearly identical to Progressive’s rate – just $15 lower. But Allstate’s rate is 35% higher than the industry average.

To find these average rates, we created driver profiles with high mileage (12,000 miles per year). The profiles covered men and women in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Low Mileage?

 

Allstate

Progressive

Industry Average

6,000 miles annually

$1,745

$1,330

$1,278

Insurance companies usually offer lower rates to drivers who put fewer miles on the odometer each year, but not these two.

Allstate’s average rate for driving 6,000 miles per year is $1,745, only $43 less than its rate for driving twice as much. Progressive’s average rate for this group, $1,330, is a paltry $4 lower.

Both of these rates are also higher than the industry average. Allstate’s rate is still the highest of any insurer in our study, and it’s 36% higher than the industry average. Progressive’s rate lands squarely in the middle of our study, but it’s about 5% higher than the industry average.

To find these average rates, we created driver profiles with high mileage (12,000 miles per year). The profiles covered men and women in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest for Good Credit?

 

Allstate

Progressive

Industry Average

Good credit

$1,801

$1,324

$1,311

Some insurers in some states take credit history into account when calculating a driver’s risk profile. They see having better credit as a sign of lower risk, and they offer lower premiums to those drivers.

Allstate’s rate for drivers with good credit is the highest in our study, at $1,801. That’s 37% higher than the industry average. It’s also nearly $500 higher than Progressive’s rate of $1,324 for this group. Progressive again has a rate close to the industry average, with a difference of only $13. That’s about 1% higher than industry rates as a whole.

To find these average rates, we created driver profiles with good credit. We used men and women aged 25 years, 35 years, and 60 years. The profiles have a clean driving record, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

Which Is Cheapest for Bad Credit?

 

Allstate

Progressive

Industry Average

Bad credit

$2,773

$2,299

$2,227

Insurance companies will often offer higher rates to drivers with poor credit, as they see them as a higher potential risk. These two companies follow that trend, but Allstate is this time not the most expensive insurer in this category in our study.

Allstate’s average rate for drivers with bad credit is still high, at $2,773. That’s about 25% higher than the industry average. Progressive’s rate of $2,299 is once again near the industry average, this time about 3% higher.

If you know you have bad credit and you’re cross-shopping these two companies, you could save about $40 per month with Progressive. Maintaining good credit could save you even more. At both companies, drivers with good credit save about $80 per month compared to those with poor credit.

To find these average rates, we created driver profiles with good credit. We used men and women aged 25 years, 35 years, and 60 years. The profiles have a clean driving record, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

Which Is Cheapest for Good Drivers?

 

Allstate

Progressive

Industry Average

Clean record

$1,788

$1,334

$1,321

It’s all about risk assessment for insurance companies, and having a clean driving history shows that you’re not a very risky driver. It’s one of the biggest factors when determining auto insurance premiums. Companies will reward safer behavior by offering lower car insurance rates to drivers without any accidents or violations on their records.

Allstate is once again the most expensive insurer in our study, with an average rate of $1,788 for drivers with a clean record. That’s 35% higher than the industry average and 33% higher than Progressive’s rate of $1,334. Progressive maintains its usual place in the middle of the pack with an average rate that’s only $13 higher than the industry average, making it the cheaper choice for drivers in this group.

To find these average rates, we created driver profiles with a clean record. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After a Speeding Ticket?

 

Allstate

Progressive

Industry Average

With 1 speeding violation

$2,034

$1,759

$1,604

Our study shows that Allstate and Progressive are both more expensive than average for drivers with a speeding ticket. Allstate’s rate is 27% higher than the industry average as well as 16% higher than Progressive’s average for these drivers. Progressive remains in the middle of the pack with this rate, as it’s only about 10% higher than the industry average. Progressive is therefore the better choice of these two companies for drivers in this group.

To find these average rates, we created driver profiles with one speeding violation. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After an Accident?

 

Allstate

Progressive

Industry Average

With 1 accident

$2,514

$2,237

$1,872

Of the insurers in our study, Allstate has the most expensive rate for drivers with an accident on their record. Its rate of $2,514 is again about 35% higher than the industry average. Progressive is on the higher end of rates for these drivers, with an average of $2,237 for having one accident. That’s nearly 20% higher than the industry average. Though both of these companies will cost you more if you’ve had an accident, Progressive is again the better choice.

To find these average rates, we created driver profiles with one accident. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Which Is Cheapest After a DUI?

 

Allstate

Progressive

Industry Average

With 1 DUI

$2,624

$1,733

$2,112

Driving under the influence is very risky behavior, but insurance companies vary quite a bit in how this affects their average rates. Though Allstate’s rate of $2,624 is on the high side, at about 25% higher than the industry average, it’s not the most expensive of the companies in our study. Progressive’s rate of $1,733 is in the middle third for this group, and it’s lower than the industry average by 18%. That makes Progressive a good choice for drivers in this group.

To find these average rates, we created driver profiles with one DUI. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Discounts

Both Allstate and Progressive offer common discounts, like bundling auto and home owner’s policies or having multiple vehicles insured with the company. In our survey, customers gave these companies nearly identical ratings for the discounts they offer, with about two-thirds of policy holders giving each company a rating of four or five out of five. Customers with Allstate noted that they had to sometimes find these discounts themselves. Progressive customers ran into the same problem, with one writing, “If there are discounts offered, they don’t mention them to me, the paying customer, often enough.”

These companies also have apps that track your driving habits to potentially save safe drivers money. Most people in our survey who mentioned these apps were not happy with them, and fewer than half gave either app a rating of four or five out of five.

Progressive’s Snapshot app was frustrating to several users, who reported technical issues such as constant beeping. One user noted, “My driving is good, but it would be helpful to get a biweekly or monthly report” from the app. Allstate customers didn’t appreciate that the company’s Drivewise app changed from being a dongle plugged directly into their car under the dash to being a phone app. “When it moved from my car to the phone, it became intrusive,” wrote one user. “Allstate does not need to come to the bathroom with me.”

Discounts

Allstate

Progressive

Customer Loyalty

No

Yes

Student/Good Student

Yes

Yes

Student Away From Home/Storage

Yes

Yes

Bundling/Multi-policy

Yes

Yes

Multi-vehicle

Yes

Yes

Good Driver/Clean Record

Yes

Yes

Defensive Driving Course

Yes

Yes

Employer/Affinity Group

No

No

Teacher

No

No

Military

Yes

No

New Car/Safety/Anti-theft Equipment

Yes

No

Low Mileage

No

No

Paperless/Online Billing

Yes

Yes

Auto-pay/Pay-up-front

Yes

Yes

Tracking Device Program

Yes

Yes

How We Did This Comparison

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We surveyed 4,806 consumers who filed a car insurance claim or started a new auto insurance policy in the last five years, asking questions about their car insurance company. Of the survey respondents, 180 filed a claim with Allstate and 197 started a policy with Allstate, while 177 filed a claim with Progressive and 316 started a policy with Progressive. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. In general, questions for consumers who have filed a claim were given more weight than questions for consumers who have only opened a policy. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies Rankings, as well as our subrankings for best customer service, claims handling, and customer loyalty, and this head-to-head comparison.

Our Study Rates

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies, though not every company operates in every state.  Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 12,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

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Are Sallie Mae Student Loans Federal or Private?

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When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances

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Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit

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Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

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