Progressive is well-known for its innovative ideas and insurance products. True to its name, the insurance company often offers forward-thinking programs to its insureds, and many companies follow suit in an effort to stay competitive. While many of Progressive’s products, like pet injury coverage or pay-as-you-go insurance, have been copied by competitors, some products remain the property of Progressive alone. One of its stand-out features is the “Name Your Price” tool, which allow drivers to customize their insurance to match what they’re comfortable paying.

How Name Your Price Works

When you arrive at Progressive’s website, you begin obtaining the quote the same way you might from any other insurer. You must input your demographic information include age and type of vehicle that will be insured. This will help the site determine what risk group you are most likely to fit into.

Once your information has been entered, you’ll be asked to provide a price that you’re comfortable paying for insurance. After entering that price, you’ll receive results for a policy that is as close to what you requested as possible. From there, the policy can be modified to suit your needs. Increasing deductibles and lowering limits will result in a lower insurance premium. Lowering deductibles and raising limits will result in a higher premium. The key to obtaining the best deal for insurance is striking a balance between coverage and expense.

It’s important to remember that, despite its name, you are not truly naming your own price for insurance. Rather, you are stating what you’re willing to pay and being matched with policies that will cost a similar amount. Additionally, bear in mind that the figure you receive online is subject to change depending on your driving history and other risk factors.

Will Name Your Price Insurance Save You Money?

Depending on what you are currently paying for auto insurance, you may be able to save money by utilizing Progressive’s Name Your Price feature. This is not always the case, however, and the sacrifices to coverage may make the savings less worthwhile. Here are some things to consider before agreeing to a policy:

— Will you have full coverage?

Dropping collision and comprehensive is one of the easiest ways to save money on insurance, but it’s a bad idea if you have a new vehicle. Before purchasing the policy, be sure that the price you’re willing to pay will give you a policy with the coverages you need.

— Is the deductible low enough?

You will be expected to pay the deductible out of pocket before repairs can be completed after an accident. If the deductible is impossibly high, you will not be able to get your car repaired after a collision. Be sure you have money set aside to cover the deductible, or choose a low enough deductible that it won’t create hardship to pay it.

— Are the limits high enough?

Every state has legal minimums for liability limits, and it’s important that you keep your coverage above those minimums. Otherwise, you risk running into problems with the DMV. Additionally, you may be personally responsible for damages that you cause if they are not paid by insurance. Having low liability limits puts you at risk of lawsuits in the event of an accident.

— Are there any restrictions or exceptions?

A common way to reduce the cost of auto insurance is to limit what the policy will cover. Be sure you review the policy carefully for exceptions or limitations that may make the policy less appealing in the long term. If there’s anything you don’t understand, be sure to discuss it with an agent or insurance sales representative.

If everything about the policy seems reasonable, you should be able to get a good deal on auto insurance. Depending on your age and risk level, the quote you receive from Progressive may not be the best possible deal. The best way to ensure affordable coverage is to input the lowest possible price, then increase it incrementally until the coverages suit your needs. If that price is still affordable when compared to other insurance policies, you can be assured you’re getting a good deal.

Although this can be a great tool for Progressive customers, it’s a good idea to research your options before choosing a policy in this way. Naming your own price on auto insurance could result in a loss of valuable coverage. Additionally, you may not always get the best deal. Only by comparison shopping between multiple auto insurance companies can you ensure that you’re getting the cheapest possible insurance without sacrificing necessary coverage.