Premiums continue to climb since state stopped regulating the auto coverage sector in 2008
Auto insurance is becoming more expensive in Massachusetts. The state is currently home to some of the most expensive auto coverage in the U.S., which is calling into question whether or not regulators should begin overseeing the auto insurance sector once again. In 2008, the state stopped regulating coverage for drivers. For a time, this caused insurance rates to drop by some degree, but they quickly shot up again as insurers sought to generate more profit from premiums and ensure that they could financially withstand significant accidents.
Rates are almost as high now as they were when the state was regulating coverage
From 2007 to 2009, the average premium for auto coverage in Massachusetts was $861. This cost inflated to $974 in 2012 and has been on the rise throughout 2013 and this year. Premiums are currently still lower than they were when the state was regulating the auto insurance sector, but this may not be the case for long. State officials suggest that the lack of regulation has given consumers more choices when it comes to insurance coverage.
No-fault laws could be driving up insurance rates
Massachusetts is home to no-fault auto insurance laws. These laws ensure that victims of car accidents are able to have their medical care covered by an insurance company no matter where the fault for the accident is placed. While such laws are designed to offer consumers certain protections, they are costly for insurance companies. These laws are often exploited by individuals and groups that want to defraud insurance companies, leading to significant losses for insurers. No-fault laws often influence insurers to raise rates for the coverage that they provide.
Consumers are not expressing much disdain for higher rates because of the options they have available to them
While auto insurance rates are on the rise in Massachusetts, drivers are not voicing much concern. Many people are not fond of higher rates, but when their premiums get too high, they begin to shop around for new coverage. Careful drivers are also taking advantages of discounts being offered by their insurance provider, which are meant to ensure consumer loyalty during times when insurance coverage is becoming more expensive.