GEICO and Progressive are battling it out in the commercial truck insurance space, but both fear the Chameleon Carrier exposure inside rapid growth companies.
Comparison of GEICO vs Progressive Commercial Underwriting Rapid Growth Guidelines
GEICO
- First Year with DOT Authority: Policyholders are permitted to add only one truck during the policy term.
- Second Year with DOT Authority: Policyholders may add up to three trucks during the policy term.
- Fleets with Over One Year of DOT Authority: Fleets may insure up to 12 units and remain eligible for a renewal offer, provided they do not exceed the rapid growth thresholds.
If you exceed GEICO’s thresholds, it will likely result in policy cancellation or non-renewal, depending on the state and when the additional truck was added.
Progressive
- Policyholders are limited to the addition of 2 trucks in a 6 month period.
- Rapid growth from 1–9 trucks to a small fleet of 10 or more is strongly discouraged and subject to Small Fleet underwriting discretion.
If you exceed Progressive’s thresholds, it will also likely result in policy cancellation or non-renewal, depending on the state and when the additional truck was added.
Progressive Small Fleet Truck Insurance
Progressive is a great option for small fleets of 10 or more trucks, and their rates are very competitive.
To submit your small fleet for consideration, you’ll need at least three years of loss experience and proof of continuous insurance coverage for the same period.
If your fleet grows to more than 60 vehicles, Progressive won’t be able to provide coverage primarily because their platform just isn’t set up for medium-sized fleets.
You can learn more at Progressive Now Insures Small Fleets & Progressive’s Small Fleet Truck Insurance.
Why Progressive & GEICO Discourage Fast Growth
You’d think insurance companies would want their clients to grow because more growth means more premium for them, right?
Well, unfortunately, our trucking insurance world has been plagued with “chameleon carriers”
These are carriers that burn through one Motor Carrier (MC) Authority then pop up with a new one.
Chameleon carriers have been causing chaos for years, creating disruption with a continuous cycle of claims and driving down your load rates.
For all their promises, FMCSA has not solved this challenge, and the insurance market hasn’t done much better.
Now the battle between GEICO and Progressive has driven down commercial truck insurance premiums.
That’s great for all of the good, honest truckers out there!
But it could make it easier for these chameleon carriers to hop from one insurer to another every time they switch their MC number.
What are Progressive & GEICO doing to stop Chameleon Carriers
Thankfully, both Progressive and GEICO now have a ton of data on past chameleon carriers.
So, if a chameleon tries to get a new quote, the system will often just say: DNQ – Does Not Qualify.
But that’s only after they’ve learned from past mistakes from that particular chameleon. They can’t see everything.
By setting tough growth rules for trucking companies, both are trying to disincentivize chameleon carriers from simply getting a new MC number to add more trucks.
Look, they know it’s not a perfect solution.
For example, if a truck is operating under an authority but isn’t listed on the policy, the first time Progressive or GEICO might “see” it is during an inspection. That’s long after it’s been on the road, supposedly covered by that motor carrier.
And getting that risky client off their books isn’t as simple as you’d think.
Because of some strange state laws, they sometimes can’t even cancel the policy mid-term. They have to wait until it’s time for renewal and then choose not to renew it.
Want to grow your trucking company?
It’s frustrating when insurance holds your company back from growing.
We understand that. So let’s talk about your plan.
Understanding Progressive and GEICO underwriting guidelines will help you avoid getting blindsided later.
And chatting through your 3 to 5-year plan with a transportation risk expert can really help you set realistic goals.
We can also help newbies with How to Get your MC Number
When you’re ready to get started, give us a call at CIS (330) 864-1511.
CIS – Commercial Insurance Solutions Inc, is an independent agent representing both GEICO & Progressive.
We’ll listen to your plans and run competitive quotes comparing Progressive and GEICO for you.
We want to help you be a successful small business owner!
