Progressive Car Insurance Cancellation Fee

After 4 years of insurance with Progressive I now shifted to AAA. Progressive used to charge me $150 for the motorcycle and last year when I bought my car, my premium increased to ~$650 a year, for including a car. AAA, which in my unverified study is as good as Progressive if not better, quoted me less than half of that premium. I guess there comes a point when loyalty stops serving its purpose.

Well then, I come back home to cancel my policy with Progressive, and I told them all truth about someone else giving me better rates for the same service. It went something like this,

Progressive : Aaiye aaiye Nikhil ji ..leejiye aapki policy renewal taiyaar hai..
Me : ye nahi wo.. (pointing towards AAA policy)
Progressive : lekin aap to hamesha ye mehangi wali..
Me : leta tha.. par ab jab wahi service wahi policy.. kam dammon me mile to koi ye kyon le..wo na le

kahani mein twist,
Yeh Akashvani hai, aur Nikhil ko yeh soochit kiya jata hai ki 4 saal ke progressive service ke baad bhi, policy cancel karwane pe uspe $50 jurmana lagaya jaata hai.
Nikhil : Hain!!

So next I know is that I have been charged $50 as a cancellation fee. Now, its not a matter of why did they charge me. I would have been completely fine as they must have had written somewhere in their 6point font about cancellation fees, and have the full right to charge it, but I do not appreciate them doing this, because there is a simple way to get around this. This is what the trick is,

If you ever want to cancel midterm, you can. Many states have done away with cancel fees, typically about $50. However, if yours still does, when they ask you the reason for canceling, just say you moved out of the state or the country. They may ask you if you tried a rate in your new state, say you did but you found a much better one. No cancel fee will be assessed.

And, I did call them back asking if this was true. Every word of this is true. If you lie to them that you are moving out of state, they will not charge you the $50 cancellation fee. Alas, I only came to know of this after being true to them. I hope my friends reading this and having a policy with progressive and if in future decide to move away from progressive can be saved of this nefariousness.

12 thoughts on “Progressive Car Insurance Cancellation Fee

  1. I was also a victim of Progressive’s fees regarding early cancelation. Be very aware of getting insurance through them! They are very vage and unclear regarding the policy when canceling with them.

  2. Michael, that conversation was just a parody of an advertisement in India. It basically means is that I wanted to get a better service which is cheaper than my existing service, but for doing that I had to pay a fine. I guess the crux is to know that if you want to cancel tell them that you are going out of state.

  3. Nikhil, thanks for the tip. Progressive is overall a sleazy insurance company, so it does not surprise me that we have to indulge in some minor sleaze ourselves to ensure that slimeball of a company doesn’t shake us down for more money. Poetic justice if I may say. Thanks for the tip. planning to cancel Progressive once I get a better rate from a better auto insurance company.

  4. Most insurance companies charge a cancel fee or some type of short-rate when you cancel midterm. Insurance is after all a contract with a specifice term and end date. As with any contract, if one party wants to terminate it early there should be a penalty to do that. I work with multiple insurance companies and this is a common practice. They are also not vague or unclear at all. If you ask straight up what the cancel fee and procedure is the agent will tell you.

  5. State Farm does not charge for early cancellation fee. Also, State Farm does not charge late fee OR reinstatement fee.

    full disclosure – I’m a State Farm Agent

  6. Shut up Mike. No one wants you on here advocating for Progressive insurance. You are obviously an employee of this sleazy insurance company that’s built on a crumbling foundation of misleading t.v. commercials that blatantly lie.

    Do yourself and all of us a favor by not commenting on this blog again. If you really want to score points with your employers, go buy some industrial strength knee pads. It’ll make the time you spend under your bosses desk a lot more pleasant. Who knows? They may even give you added stamina, which will definitely go a long way towards impressing the higher ups. Management loves a good work ethic, afterall.

  7. MIKE stated:: Most insurance companies charge a cancel fee or some type of short-rate when you cancel midterm(FALSE, I actually DO work with multiple insurance carriers, great carriers too, NONE of them charge cancellation fees(this is with personal lines by the way, commercial is a whole other subject on cancellations)). Insurance is after all a contract with a specifice term and end date. As with any contract, if one party wants to terminate it early there should be a penalty to do that(FALSE, why “should there be a penalty” ridiculous???). I work with multiple insurance companies and this is a common practice(FALSE). They are also not vague or unclear at all(HOW DO YOU KNOW WHAT OTHER AGENTS WILL SAY?). If you ask straight up what the cancel fee and procedure is the agent will tell you.(HOW CAN YOU EVEN WRITE THIS? YOU DON’T KNOW WHAT SLEAZE BAG AGENTS ARE OUT THERE and if they will be truthful about penalties and such, that’s naive.

    (Anyway, I’m a great agent and write insurance in CO CA WA & TX. We only use A rated carriers or better. I always beat rates from AAA by the way, they have some pretty high rates from what I’ve seen. ) Progressive is one of the carriers I write with out of 14 other carriers. They are a good company but in some states they charge cancellation fees, yes. It’s usually when you are direct with them instead of thru an agent.

  8. I have worked in the insurance industry for 30 + years. I have had dozens of policies with dozens of carriers and last year made the mistake of switching my motorcycle insurance to Progressive based on an excellent rate which was less than the increased premium I received from a carrier I had been with for a number of years. I recently replaced that motorcycle with a brand new one for which Progressive wanted an additional $96. for the remaining five months of my current policy and then nearly DOUBLE the rate I paid last year when the policy was set to renew in November. I shopped around and found a new carrier that provides the exact same coverage on my new bike for around $30 more ANNUALLY over my original Progressive rate. When I cancelled the policy, I was levied a $30 “administrative fee”. I argued that was more than 10% of the original premium ($288) which I felt was ridiculous, naturally to no avail. I have made it my mission to warn anyone and everyone I know about the evils of Progressive. I guess we all know how they pay for their constant bulk mailings and obnoxious “Flo” commercials now. I have NEVER paid any type of fee or penalty for early cancellation thru ANY of the other seven or eight insurance companies I have had policies with.

  9. Progressive charged me the cancellation fee as well as 55 dollars for something else. Geico never has fees like progressive. I recommend staying away from progressive, as they have poor customer service skills, and are sneaky about hidden fees that shouldn’t be charged to their customers. I think as drivers we pay enough for insurance, why is it necessary for ridiculous fees? SOOOOO ANNOYED!

  10. I decided to switch to AAA due to better coverage than Progressive, same thing they charged me a fee. I called customer service and the person that answered was very rude and basically ignored my questions. He just replied that the cancellation fee warning was in my renewal papers and that was all he was going to say. What a stupid way of doing business.

  11. We were never told about any cancellation fees either. We moved from the DFW area to the Houston area and they wanted $634.00 a year more for the same coverages. We found it for $384.00 a year less than we were paying in the DFW area. When we called Progressive and explained the price difference they said there was nothing they could do. I guess being with them for six years means nothing. I refuse to pay the fee. I do not care what they threaten. And believe me, they have been calling thratening to take it to collections and ruin my credit. What they do not realize is I record every call and I plan on filing a grievance with the State Attorney General

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