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THURSDAY, DECEMBER 15, 2011

Progressive Insurance fined $125,000 for misleading Massachusetts consumers

The Mass Division of Insurance has fined Progressive $125,000 for failing to properly explain their rating system to their clients.  The DOI claims Progressive told roughly 3,200 Massachusetts auto insurance customers that their credit rating was used in setting their auto insurance rates.  However, credit scores have never been used in rating Mass auto insurance – in fact, the practice was formally banned earlier this month.  Acording to sources, Progressive stated that their reps mistakenly referred concerned customers to a generic explanation of rates on their website.  Some say this may reflect an uninformed and indifferent approach to customer service.  Your best source for unbiased and accurate insurance advice continues to be Massachusetts independent insurance agents.  Progressive has been fined by the DOI numerous times over the past few years for overcharging some customers and for comparing their 6-month rates to competitors 12-month rates.
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