Progressive Insurance
cuts no-fault rate

By Rob Perez
Star-Bulletin

Progressive Insurance Co. today said it plans to lower auto insurance rates for Hawaii customers an average of 35 percent.

Progressive also said it will launch a new, free service that will help consumers compare insurance rates from several companies over the phone.

The reductions take effect Jan. 1 and stem partly from a new state law mandating lower rates for minimum mandatory coverage.

Reduced claim losses for Progressive and an increasingly competitive market also are contributing factors, said Jim Daues, Hawaii product manager.

Other insurance companies also have announced reductions to comply with the new law.

To help consumers compare rates, Progressive is launching a service in which people can call 526-2200 and get quotes for the same coverage from Progressive and three other insurers.

State Farm, Allstate Insurance and AIG Hawaii or Geico will be the other companies, Daues said.

Progressive has a computer program that will be able to generate accurate quotes using the other companies' rates, he said.

Once the service is fully operational by mid-January, callers can get phone quotes in about 15 minutes and will be under no obligation to sign up with Progressive, he said.

The service is intended to promote the idea that people should shop around for insurance, Daues said. Annual premiums for identical coverage can vary from company to company by more than $1,000, he said.

Progressive offers the 24-hour service in 15 other states and will be the first insurer to offer it in Hawaii, according to Daues.

Carolyn Fujioka, a State Farm spokeswoman, said consumers need to be certain that any quotes provided by one company for another are accurate. She also said service, not just price, should be considered.

Progressive is Hawaii's 11th largest auto insurer with about 15,000 customers.

It also is the largest insurer for motorcycle policies locally, but those won't be affected by the reductions.