Progressive settles in Massachusetts over rate quotes

Progressive Insurance is paying the state $120,000 and will reimburse customers after volunteering that its Web site had provided inaccurate rate comparisons. The Ohio-based company began selling policies in Massachusetts on May 1, 2008, as part of the Patrick administration's new managed competition auto insurance system. In a settlement announced Monday, Attorney General Martha Coakley said Progressive sometimes quoted cheaper prices for yearlong policies when asked the price for six-month policies that are usually more expensive. As part of the settlement, the company has eliminated its rate comparison tool for Massachusetts quotes and phone representatives have also stopped quoting comparisons. A company spokeswoman says Progressive is happy to resolve the problem.