Why isnt Progressive Insurance allowed to supply contained by Massachusettes? or do they choose not too?
Answers:
I don't know
The state law of Massachusetts are very anti-insurance companythere are alotof companies that don't do business contained by Massachusetts. Change the laws and they will come here.
They choose not to!! There are a few reason behind this.
1. within Massachusetts, the state sets the rates, not the insurance company.
2. It's damn hard for an insurance company to verbs out of the auto market surrounded by MA, there is a HUGE charge you have to pay packet, like ten years of premiums.
3. Progressive have 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 attain 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 member from coverage on an auto policy. Progressive doesn't want to write insurance the MA way, as auto insurance surrounded by 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 optional 42% of the base premium. Which is why within are, what, 7 insurance companies writing personal auto in MA, and no competition.
They have to be licensed within each state and conceivably the restrictions and cost override any profit they will make.
Me?
some states enjoy some real funky rules and regulations
I remember that South Carolina have a rule that if a person specifically requested a sure insurance company that you had to write them beside that company whether they qualified for that rate or not
They choose not to because they could not charge rates they want. Rates in Massachusetts are regulated by the state.
Almost worked for Progressive.