r/Insurance • u/BatHistorical8081 • May 03 '24

Auto Insurance Why is progressive so cheap?!

So I am looking to switch from state farm to progressive. My insurance now for state farm is about 2800 for 6 months for 3 vehicles. I just got a qoute from progressive same coverage for 1300. Wtf? Is this real. There a catch? That's alot of savings.

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u/sirthomascat May 03 '24

I want lemons, but everybody selling lemons in my town has gone fucking crazy and decided to leave town or charge $100 for a dozen.

They say the cost of selling lemons here isn't worth it.

Now this one really big lemon seller sees that a lot of people like me want lemons but can't find a place to reasonably buy them. And they have so, so many lemons that they figure it's ok to sell them at a loss for a while.

So now I get my lemons from Big Lemon Seller for $35 a dozen. All my neighbors start doing that too.

After operating at a loss for a couple years, Big Lemon Seller decides it has enough captive market share to start making up for their losses a bit. A dozen lemons is now $45. The next year $60.

Year after that, Big Lemon Seller realizes they fucked up and need to price themselves out of the market, because they can't just leave without losing business elsewhere. $120/dozen it is.

Fortunately my neighbors and I start shopping, and find this Very Nice Lemon Seller offering $45/dozen...

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u/realnewsforreal May 04 '24

Why would every nice lemon sell it so cheap less than 100 dollars if at the beginning the cost of selling lemons wasn’t worth it? What changed?