MGT Insurance Company has filed a new commercial auto insurance program in California, targeting small businesses that have struggled to find coverage as standard markets have pulled back from the state. The filing seeks approval for a full commercial auto product, with a requested effective date of January 1, 2026, for new business.

According to the filing, MGT positions the program as a long term commitment to California’s small business market, focusing on light vehicles under 33,000 pounds operating within a 500 mile radius. The company says brokers and agents have consistently reported difficulty placing commercial auto risks in California, particularly for small fleets, prompting MGT to step in with what it describes as a stable, tech enabled alternative.

The program is largely built as a “me too” filing, mirroring the rating structure, rules, and policy forms used by Progressive’s United Financial Casualty Company and ISO. MGT notes that all rating factors are identical to Progressive’s most recently approved California filing, with the exception of base rates, which have been adjusted to reflect MGT’s own expense structure. First, commissions are higher for MGT at 14.5% versus 10% for Progressive, implying a heavier broker compensation load. Second, taxes, licenses, and fees are lower for MGT at 2.35% versus 3%. Third, MGT’s total expense and profit load is higher at 36% versus 32.65% for Progressive, which drops the permissible loss ratio to 64.0% (vs. 67.35%) and leads to a 1.05 rate adjustment factor in the filing.

On the forms side, MGT is filing a full suite of commercial auto policy forms and endorsements, including hired and non owned auto coverage, trailer interchange, roadside assistance, rental reimbursement, medical payments, uninsured and underinsured motorist coverage, and multiple California specific amendatory endorsements. Several endorsements, such as named driver exclusions and additional insured coverage, align with previously approved Progressive filings.