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;
Kathy.Shwiff@dowjones.com
