Why isnt Progressive Insurance allowed to sell in Massachusettes? or do they choose not too?

Answer 1

They choose not to because they could not charge rates they want. Rates in Massachusetts are regulated by the state.

Almost worked for Progressive.

Answer 2

They choose not to!! There are a few reasons behind this.

1. in Massachusetts, the state sets the rates, not the insurance company.
2. It's damn hard for an insurance company to pull out of the auto market in MA, there is a HUGE fee you have to pay, like ten years of premiums.
3. Progressive has NO desire to be "assigned risk". In MA, if you do ANY auto business, you MUST take assigned risk - which is largely multiple DUI's, and public autos (read, Taxi cabs), and they can't get the premium to make it worth while, as the personal auto rates are set by the state.
4. MA Insurance department won't allow their form, which automatically excludes ALL undisclosed household members from coverage on an auto policy. Progressive doesn't want to write insurance the MA way, as auto insurance in MA is pretty much a "loss leader".


Yep, you can have as MANY DUI's as you want, and the LARGEST your surcharge can be, is an additional 42% of the base premium. Which is why there are, what, 7 insurance companies writing personal auto in MA, and no competition.

Answer 3

The state laws of Massachusetts are very anti-insurance company....there are alotof companies that don't do business in Massachusetts. Change the laws and they will come there.

Answer 4

some states have some real funky rules and regulations
I remember that South Carolina had a rule that if a person specifically requested a certain insurance company that you had to write them with that company whether they qualified for that rate or not

Answer 5

They have to be licensed in each state and maybe the restrictions and cost override any profit they will make.

Answer 6

Me?

Answer 7

I don't know