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28th December 2006

Progressive Insurance to raise motorcycle rates 15%

Progressive Insurance will be allowed to raise its rates for motorcycle insurance by 15 percent this year, but the firm will have to file with the Oklahoma State Board for Property and Casualty Rates again next year to get another increase.

Progressive had voluntarily capped the requested increase so that no individual insured would have their rates raised by more than 15 percent this year. However, the company had asked to be allowed to keep increasing the rates for certain insureds by 15 percent every year for several years into the future.

The company’s filing included a revised rate structure, which would cause the cost of its policies overall to increase by 5 percent. Some insureds would wind up paying nearly 75 percent less under the revised rates, while others would pay more - up to 576 percent more, in one instance.

It would take several years for Progressive to gain a 576 percent increase by raising rates just 15 percent each year - longer than several of the current board members are likely to serve. The board allowed Progressive to raise rates by no more than 15 percent increase this year. But in order to obtain future increases, the company will have to go through the filing process again.

This entry was posted on Thursday, December 28th, 2006 at 4:33 am and is filed under Motorcycle Insurance Rate. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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