Feb 25, 2008 2:50 pm US/Eastern
Progressive Entering Mass. Auto Insurance Market
BOSTON (WBZ) ―
The nation's third-largest auto insurer is pushing to enter the Massachusetts private passenger insurance market, saying its average rates are lower than what consumers paid last year.
Progressive Corporation has filed proposed rates with the Massachusetts Division of Insurance that are an average of 18 percent lower than the average rates paid by state drivers last year.
The Ohio-based company already sells commercial auto insurance to Massachusetts business owners through independent agents. The company is entering the private passenger market after the state shifted to a system in which auto insurers rather than regulators set rates.
Customers will at first only be able to buy new policies online. They will eventually also be able to shop by phone and through local independent agents.
Just last week, the state has launched a new web site to help consumers compare auto insurance rates as Massachusetts switches to a more competitive market. The site shows consumers the range of prices and discounts they may qualify for from rival companies, and tells them how to contact auto insurers and agents for rate quotes.
Drivers can generate a list of sample premiums by entering data about themselves and the vehicle they drive. It compares the rates of 19 insurance carriers in the state.
The site went online last weekend and is available on the state Division of Insurance's Web site,
www.mass.gov/autorates.
This month marks the start of the annual auto insurance policy renewal process. For the first time in 30 years, Massachusetts drivers have more choices because of the switch to a system dubbed "managed competition."
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