Massachusetts auto insurance rates are skyrocketing

Auto Insurance rates for safe drivers

The state Governor is introducing a new approach to try to control this growing issue. When Governor Deval L. Patrick first made its significant deregulation changes to the once tremendously costly and extremely regulated Massachusetts auto insurance industry, five years ago, he also promised consumers that it would help them to save money as he brought in a new approach which he called “managed competition.” This strategy did work at first, with premiums falling an average of 12.7 percent from 2007 to 2009. This was according to the data from…

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National Association of Insurance Commissioners applauds achievements of deregulation of auto insurance in Massachusetts

According to the National Association of Insurance Commissioners, following the deregulation of the auto insurance marketplace in Massachusetts in April 2008, the average driver’s coverage premiums decreased by $133.80 per year. The Association released a report that showed that at the end of 2007, the average premium had been $1,056.91 per year. Two years later, at the same time, it had dropped to $923.11. That meant that the average decrease in auto insurance premiums was 12.7 percent per year. It noted that only the figures considered only the premiums paid…

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AUTO INSURANCE COMPETITION A BIG SUCCESS IN BAY STATE

Trade Group Hails Report by National Insurance Regulator Group PRESS RELEASE, BOSTON:“The verdict is in and it is remarkable: Since the introduction of competition, consumers in Massachusetts have seen their auto insurance rates decline by the most of any state in the nation,” said James T. Harrington, the Executive Director of the Massachusetts Insurance Federation (MIF.) “Polling has been clear that competition is very popular with Massachusetts consumers but now we know, too, that industry regulators throughout the country agree that the remarkable decrease by an average 12.7% for auto…

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Parent’s Supervised Driving Guide launched by Safe Roads Alliance, Safety Insurance, and the Mass RMV

Top home, auto, and commercial insurer in New Hampshire and Massachusetts, Safety Insurance, has announced that it is working with the nonprofit organization, Safe Roads Alliance, which works to promote driving safety, to offer The Parent’s Supervised Driving Guide with the support of the Massachusetts Department of Transportation Registry of Motor Vehicles (Mass RMV). Safety Insurance and Safe Roads Alliance have created the program in their combined effort to better the awareness and education of drivers in Massachusetts by offering a free resource to guardians and parents of the recipients…

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Massachusetts insurers banned from using credit score to price auto insurance, according to new law

A new law has passed in Massachusetts that will ban insurers from pricing auto insurance based upon socioeconomic factors. Governor Deval Patrick signed the associated bill into law this week and believes that it will afford consumers with more protections against insurers constantly on the lookout for extra money. The ban was already enacted in the state some months ago but existed only as an administrative regulation. The bill’s passage comes after months of legislative struggle and conflict between consumer advocacy groups and insurance companies. Insurers opposing the measure claim…

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State Farm auto insurance remains outside of Massachusetts

Following the end of the state-set auto insurance rates in Massachusetts three years ago, there have been over a dozen new insurers that have rushed in to take their piece of that sector. However, the largest auto insurer in the country, State Farm Mutual Automobile Insurance Co., has decided that it will be remaining outside of the state. Other insurers that have made their way in include Allstate, Geico, and Progressive. It’s believed that a fourteenth new auto insurer, Sun Prairie, Wisconsin-based General Casualty, will soon be joining that market.…

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Massachusetts insurance agents withdraw ballot initiative to ban the use of credit score to price insurance

In September, the Massachusetts Association of Insurance Agents (MAIA) launched a campaign to ban the use of credit score and other socioeconomic factors in determine the price of insurance coverage. The campaign was endorsed by Attorney General Martha Coakley, and MAIA had a goal of gathering some 70,000 signatures to ensure the issue was on the ballot for the next legislative session. Faced with mounting legal costs and pleas from legislators, MAIA has withdrawn its ballot initiative and will pursue an alternative method of bringing the issue before the Legislature.…

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