Progressive insurance is a car insurance company that offers discounts to drivers who sign up for its programs. The company has been in business since 1937 and has headquarters in Mayfield Village, Ohio. Progressive uses many different rating factors to determine rates, including a driver's zip code. To get the most accurate rate possible, Progressive requires new applicants to provide proof of their current address.
There are a few reasons why an applicant's zip code is important to their car insurance rate. First, insurers use data from past claims to help set rates for future customers in similar areas. If there have been a lot of claims filed in an applicant's zip code, that information is factored into the rates offered to new customers in that area. Additionally, different areas have different levels of traffic and crime, which can also impact rates. By requiring proof of address, Progressive can be sure it is accurately classifying each customer based on where they live.
Requiring new applicants to provide proof of address may seem like an inconvenience, but it ultimately helps Progressive offer the most accurate rates possible.