Progressive Appointments - Anything to Be Wary of in Contract?

[trg2011]

Any insight to the Progressive contracts for new agency appointments? Comp seems reasonable in light of all the changes with Captive carriers and industry in general, but being a newbie to P&C I am hoping to get some insight from the vets on this forum.

Anything to look out for is greatly appreciated.

 

[Guest]

Re: Progressive Appointments - Anything to Be Wary of in Contract

They pay a little less in commission
The are promoted extremely well, which will help people call you
their website for agents is one of the best
People know the name, so if you advertise it, they will call
If a client cant get a hold of you on the weekend, they call the 800 number, progressive will write the policy in YOUR code and email you to tell you

 

[bobson]

Re: Progressive Appointments - Anything to Be Wary of in Contract

They have the best system for writing auto type insurance including boats, motorcycles, travel trailers, etc. They don't pay as much though which hurts. But if you are new and looking for an easy system to learn it doesn't get any better than Progressive. In my area their preferred auto rates are getting very competitive. Plus they write any auto policy you need written.

 

[infoe]

Re: Progressive Appointments - Anything to Be Wary of in Contract

good to know, simple question from OP invoking good feeling

I know they require you to have an office...it just CAN'T be a home office correct? Does it matter if your insurance office is in a commercial first floor or can it be in a high rise office building?

 

[CaptiveGuy]

Re: Progressive Appointments - Anything to Be Wary of in Contract

When I got appointed with Progressive they did it all over the phone and email. They didn't ask where my office was I doubt they care.

The preferred rates are not up to par but the system is easy to use but there are non-standard carriers who will pay more. In MD Foremost starts off at 12% (up to 15%) and can compete with Progressive on DUIs and liablity only. Progressive wins on full coverage though for my multi-incident clients.

 

[voelkerins]

Re: Progressive Appointments - Anything to Be Wary of in Contract

When I got appointed with Progressive they did it all over the phone and email. They didn't ask where my office was I doubt they care.

The preferred rates are not up to par but the system is easy to use but there are non-standard carriers who will pay more. In MD Foremost starts off at 12% (up to 15%) and can compete with Progressive on DUIs and liablity only. Progressive wins on full coverage though for my multi-incident clients.

I am appointed with them, and everyone is very helpful. their FAO site is awesome, I write alot of motorcycle insurance with them.

 

[insurancemansam]

Re: Progressive Appointments - Anything to Be Wary of in Contract

Most agents only write them if they have to. Nobody builds a Independent agency on progressive. They are the anti agent.

 

[BlockO]

Re: Progressive Appointments - Anything to Be Wary of in Contract

Progressive definitely has their pro and cons. they're very competitive in a lot of markets like MC,boat,RV,mobile home etc.
I am able to write policies that I would be unable to write otherwise, which I why I like having them.

but the cons are a pain in the arse! to be successful with Progressive as a main carrier, you MUST be a signature agent. signature agents get referrals from progressiveagent.com, have higher commission rates, and get an advertising stipend.

but if you're not a signature agent, your just another broker. no referrals unless you want to generate them from your own website. low commissions & no advertising help.

I would like to become a signature agent. problem is, Progressive only wins the premium battle about 20% of the time. so meeting their production requirements is challenging.

I like having Progressive as a tool. but sometimes they can be tools to their agents! they may be upfront about their direct vs agent rates, but they're the only company I know of that competes against their own agents.

 

[CaptiveGuy]

Re: Progressive Appointments - Anything to Be Wary of in Contract

but the cons are a pain in the arse! to be successful with Progressive as a main carrier, you MUST be a signature agent. signature agents get referrals from progressiveagent.com, have higher commission rates, and get an advertising stipend.

The sad thing is the higher commissions only apply to preferred apps you write after you are a signature agent.

Signature AgentSM benefits include:

• 15/12 commission on preferred Progressive Personal Auto and Personal Umbrella policies;
• a $2,000 annual marketing allowance that they can spend on select marketing tools, including access to Progressive's marketing and public relations expertise; and
• appointment to sell Progressive Home Advantage® and Personal Umbrella.

 

[moeasadi]

Re: Progressive Appointments - Anything to Be Wary of in Contract

Most agents only write them if they have to. Nobody builds a Independent agency on progressive. They are the anti agent.

I agree.My last choice.After 4 years my total written premium is only about $13000