The Boston Herald reports that Progressive plans to raise their rates in MA starting April 1. Critics point to this as the bait and switch they were expecting from the Ohio-based insurance company that took 1.2% of the MA auto insurance market in less than a year. Progressive representatives argue that the rate hike is a natural market adjustment after one year in MA. What do you think?
massachusetts auto insurance rate increases
At the end of 2008, Massachusetts Attorney General Martha Coakley asked the Massachusetts state Division of Insurance to look at one insurance company, Premier (a subsidiary of Traveler’s Insurance), for alleged discrimination related to home ownsership. Coakley’s office alleges that Premier’s new rating system unfairly increases rates for Massachusetts Auto Insurance consumers who do not own homes. As readers of this blog already know, Massachusetts insurance regulations prevent auto insurance companies from basing rates on income, homeownership, among other factors that could be construed as indicators for income.