Progressive announced that effective Nov. 11, 2000, the company will make changes to its personal auto programs in both Progressive West and Progressive Marathon. These actions, which are being taken in response to continued adverse loss trends, include discontinuing group programs, such as Business and Professionals group, Emergency Roadside Assistance group, and Motorhome Club group.
The discounts that had been associated with these programs will also be removed from policies at renewal time. The company will also no longer offer a 10 percent rate reduction for paying the total policy premium in full. This affects both new and renewal business.
Existing paid-in-full policies will not be affected until renewal. Progressive is tightening up its lapse policy, which previously allowed a one- to seven-day lapse in persistency (prior insurance coverage) for new policies. Now, lapses are no longer accepted, which, according to Progressive, brings it “in line with common market practice.” The company will also move up the minimum age for credit orders from 19 to 21 years old.
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