Auto Insurer Progressive Settles Massachusetts Charges

   DOW JONES NEWSWIRES 
 

Progressive Corp. (PGR) agreed to pay $120,000 to Massachusetts and reimburse overcharged consumers in a settlement of allegations the auto insurer provided consumers with inaccurate rate comparisons on its Web site.

That wrong information "harmed consumers and harmed Massachusetts' ability to introduce a competitive system in automobile insurance," said state Attorney General Martha Coakley.

Her office accused Progressive of offering misleading and inaccurate comparison rates for three privately held insurers, including Liberty Mutual Group.

Progressive advertises nationally that it will instantaneously provide comparison quotes for its competitors when a driver seeks a quote on the insurer's Web site. Progressive began offering the service in Massachusetts when it began selling policies there 13 months ago.

In December, Progressive notified the Attorney General's office about inaccuracies and took down its rate comparison tool for Massachusetts quotes. The company also stopped offering comparison quotes through its call centers for Massachusetts consumers.

Coakley's office also accused Progressive of failing to obey its rating practices. For example, the company said it wouldn't charge consumers for additional drivers listed on their policy that carried his or her own insurance, but the Attorney General's office said Progressive charged some Massachusetts policy holders higher rates to include already insured drivers on their policies.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]