👉 The term 'car insurance progressive' is a jargon used within the insurance industry to describe how car owners pay for future expenses as they accrue over time rather than at the end of their policy's coverage period.
Imagine a scenario where you have just bought your first car, and after doing so, it has depreciated in value by $5,000 since your last inspection. You're looking to raise some cash to replace it or sell it for a profit. But when you finally do that, the insurance company will notice your vehicle is not fully covered for these unforeseen losses. So, instead of having to pay out a full premium every year, you decide to add an annual rider to your policy that covers the loss in value over 5% of your total coverage amount (i.e., $5000 for a car worth $10,000). This means even after paying off the first $5000 and any other associated expenses, you're still responsible for the remaining $4,500. But guess what? Your insurance company won't pay out a full premium to cover this loss because it's not included in your policy. The 'car insurance progressive' analogy is like saying that you've just bought a new car but then realize after buying that it depreciates at a faster pace than expected, resulting in an ongoing cost. The term implies the insurance company will look for ways to mitigate these expenses over time rather than charging a
