The Progressive (PGR) Soars 4.33% on Innovative Pricing Models

On July 16, 2025, The Progressive's stock rose by 4.33% in pre-market trading.

Morgan Stanley maintained its "Equal Weight" rating for The Progressive, with a new target price of $280.00. This decision comes as The Progressive continues to innovate its pricing models and introduce new products, such as the Vehicle Protection Plan, which aims to enhance customer satisfaction and retention.

The Progressive has been actively upgrading its pricing models. In 2024, the company launched an upgraded personal auto insurance model, Model 8.9, which integrates a wide range of external data sources. This includes real-time vehicle diagnostic data, driving behavior analytics, and market repair cost indices, all of which help in refining risk assessment and pricing strategies. The model has also introduced new indicators such as the "battery health index" for electric vehicles and "parking lot safety scores," which further enhance the accuracy of risk evaluation.

The Vehicle Protection Plan, introduced by The Progressive, offers comprehensive coverage for mechanical failures and additional services such as minor dent repairs and key replacement. This plan is designed to appeal to customers with new vehicles, providing them with peace of mind and additional value. The plan has shown positive market feedback, with a significant increase in customer conversion rates and a notable improvement in customer satisfaction metrics.

In addition to its personal auto insurance offerings, The Progressive has also upgraded its Special Lines product model, R17, which covers recreational vehicles such as motorcycles, ATVs, RVs, and boats. This model aims to provide more precise risk segmentation and improved market acceptance, catering to different user groups and strengthening The Progressive's leadership position in the recreational vehicle insurance market.