Otto Insurance vs. Progressive
The Best Choice in 2023
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Last Updated: June 9, 2023
When you’re looking for insurance, there’s no right answer when it comes to which company is the best. It comes down to what you need and why you need it and how much you can afford. Having several companies to choose from also makes it more challenging.
Between Otto Insurance and Progressive, it’s a matter of selecting between the new and the old. Otto has built a community of over 10 million customers in a short time, but Progressive has nearly a century of experience in the industry. We’ll look into what both companies offer and compare their auto, home, and life insurance to give you all the key information you need.
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|A.M. Best Rating||N/A||A+|
|Better Business Bureau (BBB) Rating||NA||A+|
|Standard & Poor (S&P)’s Rating||NA||A|
Note: Otto is a relatively new player in the insurance market, so it doesn’t have third-party ratings from companies like A.M. Best or the Better Business Bureau (BBB).
Considering when it started its operations, it is impressively available across all 50 U.S. states. Meanwhile, Progressive has a wealth of experience, with nearly a century in the market. As the second-largest auto insurer in the U.S., it has excellent financial ratings from third-party rating companies.
Otto vs. Progressive Car Insurance
Otto Car Insurance
Otto Insurance claims to work with over a thousand affiliate insurance companies that offer various insurance products, since it isn’t actually an insurance company itself. With its affiliation, you get different types of car insurance coverage, such as:
- Liability coverage that covers injuries and damage to another person if you are at fault in an accident.
- Collision coverage covers damage to your vehicle if you collide with another vehicle or an object. It pays to repair or replace your vehicle regardless of fault.
- Comprehensive coverage helps you with expenses if your vehicle is damaged by something other than a collision, including fire, vandalism, water damage or animal related accidents.
- Personal Injury Protection helps cover medical costs, lost wages, or funeral expenses in the event of an accident.
- Uninsured/underinsured motorist protects you if you’re in an accident with some without or with very little car insurance.
- Medical expenses coverage is a backup to your health insurance coverage.
- Guaranteed Auto Protection (GAP) insurance pays the difference between the current value of your car and the overall amount of your car loan.
- Rental reimbursement helps reimburse you up to the policy maximum if you need to rent a car when your own car is damaged in an accident.
- Roadside assistance is a helpful tool if you’re ever stranded by the side of the road.
- Non-owner insurance covers any property damage or injuries you cause while driving a borrowed vehicle.
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Progressive Car Insurance
On top of all the standard coverages, like liability coverage, collision and comprehensive coverage to protect your car against damages, you can pay a bit more to add several other coverages.
Gap Insurance helps pay the difference between your balance on a loan and your car’s value if met with an accident. This coverage is important if you have a new car. Since collision coverage pays only the cost of your car up to its actual cash value, you can get gap coverage for up to 25% over your vehicle’s actual cash value.
Rental Car Reimbursement helps pay for a rental car if it is damaged in a covered accident. Progressive will pay between $40 and $60 per day for a rental car.
Roadside Assistance from Progressive includes towing, lock-out service, flat tire changes and other emergency services if you’re stranded on the road.
Custom Parts and Equipment (CPE) coverage is ideal if you’ve installed aftermarket parts. It covers stereos, navigation systems, and other custom parts you’ve added to your car. This coverage has a $5,000 limit.
Progressive Deductible Savings Bank lowers your deductible by $50 for every six-month period that you don’t make any claims. Others call this a vanishing or diminishing deductible.
Rideshare Insurance bridges the gap between your auto insurance policy and the protection the company you’re driving for offers. You can get Progressive’s rideshare coverage in 39 states and Washington, D.C.
Mexico Insurance covers you if you’re driving across the border, since you need special insurance to drive legally in Mexico.
Compare Otto vs. Progressive Home Insurance
Otto Home Insurance
Through Otto, you can get home insurance quotes from top home insurance companies like Nationwide, Esurance, AAA Insurance, Farmers, Progressive, Liberty Mutual, and American Family Insurance. Otto doesn’t write policies directly, but it does help insurance seekers secure it.
Progressive Homeowners Insurance
You can get standard insurance coverage for your home’s structure, your personal property and temporary relocations. Progressive’s home insurance also offers coverage for other structures on your property and protection for guests if they get hurt.
You don’t get many options to customize your coverage and Progressive’s liability coverage doesn’t offer as much protection as other home insurance companies do. Progressive doesn’t offer other common coverage options like identity theft protection or extra coverage for valuable items but it does offer water backup protection. It also doesn’t include Personal liability coverage which other insurers include in a standard home insurance policy.
Otto vs. Progressive Life Insurance
Progressive doesn’t write its own life insurance. However, it’s still a viable choice for people looking for various policy types and educational resources. Instead, it refers clients to eFinancial, LLC, which places them with underwriting life insurance companies based on their coverage of choice.
Depending on their needs, clients can choose between term life, short-term life, final expense life, whole life or universal life. Death benefit amounts also depend on the policy type, needs and qualifications, and can vary from $5,000 to $2 million.
Otto Insurance also gives you the option of getting life insurance quotes. You can request quotes without a medical exam. No-exam policies are ideal when you want to save time getting life insurance.
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Otto Insurance vs. Progressive: Which Company Should You Choose?
Compared to Progressive, one of the biggest insurers in the U.S., Otto is a relatively new name. Otto emphasizes simplifying the insurance process and making it more accessible. Although it has a projected reach across all 50 states, it doesn’t write policies directly. It operates as an insurance carrier search engine as per your location and lets you compare different options.
Progressive, on the other hand, is the second largest auto insurance company in the U.S. It has a long-established reputation and a vast client base that provides an extensive collection of customer reviews and experiences. Progressive also boasts robust claims processing procedures with 24/7 claims reporting and support.
Progressive is an excellent choice for anyone looking for various policies and policy types with a wide range of coverage options and discounts. Its history of providing insurance quotes and claims handling makes it a household name in the insurance industry. If you want to compare carriers and see where you can get the most ideal insurance options, Otto is a new, viable option that you can choose.
However, make sure to do thorough research based on your needs before making the final decision.
Frequently Asked Questions
How cheap is Otto Insurance?
According to the Otto website, you can find car insurance for just $19 per month, but it’s difficult to validate this price. Since Otto doesn’t have a direct quote process, you’re redirected to a recommended insurance company where you must go through the process.
Is Progressive a good insurance company?
It depends on what you’re buying. Progressive is one of the best auto insurance companies that offers various policy types, discounts and digital tools. It also has a long history and strong financial ratings, so getting your quotes from Progressive should be a good choice.
Is Otto Insurance legit?
Although information about it is scarce, it is a legitimate lead-generation company. The company doesn’t have an About Us page on its website, so it’s hard to pin down the details.
How good is Progressive at paying claims?
In general, Progressive is known for its effective and trustworthy settlement process. As of the largest motor vehicle insurance companies in the US, Progressive has an excellent track record for quickly resolving claims and paying clients fairly.
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