Progressive’s surcharge schedule varies depending on the state and a customer’s driving history, but the average surcharge after an at-fault accident is 62.5% nationwide.
When an insurance company raises your rates after a claim, it is following what is known as a “surcharge schedule.” Every insurance company has its own surcharge schedule, which determines when, how much and for how long a policy’s premium will increase. Many companies follow the Insurance Services Office (ISO) surcharge schedule, which allows a 20% to 40% increase to the insurer’s base rate. This base rate is calculated from the average rate charged in the driver’s state before any discounts or adjustments, plus the insurance company's claims-processing fee.
Progressive will impose a surcharge on your insurance policy for certain accidents, motor vehicle violations or lapses in coverage. The surcharge for at-fault claims is generally higher than the surcharge for accidents that aren’t your fault or comprehensive claims, and the length of time a claim will stay on your record depends on your state. However, in certain cases where the claim is less than $500 and out of your control, like damage from acts of nature, Progressive offers accident forgiveness, so you won’t see an increase in your insurance rate unless the same claim happens multiple times. The benefit is available as soon as you become a customer.
To avoid surcharges, do your best to drive safely and avoid accidents, moving violations, traffic violations and lapses in coverage. Also, consider paying small claims out of pocket, as doing so might be cheaper than paying higher premiums after a surcharge.
Finally, ask Progressive for a copy of the company's surcharge schedule, compare it to your own policy and call an agent if you see any questionable surcharges on your bill.
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