AUTO
INSURANCE
INFORMATION
FOR
SPRINGFIELD
DRIVERS
By
Commissioner Nonnie S. Burnes
Are
you a good driver who is paying too much for auto insurance? Have you seen auto insurance commercials
that advertise policies with the kinds of offerings that you would want to
purchase? Have you ever wondered why
you have so few companies to choose from when it comes time to pick an
insurer? If so, you’re not alone. For years Massachusetts has been the only
state in the nation that sets auto insurance rates. Our system of overregulation made good drivers pay more than
their fair share and gave all drivers just one policy option. It also forced numerous companies to pack up
and leave. The result? Consumers
everywhere felt shortchanged, leaving them to ask, “Why don’t I have access to
the same lower rates and greater choices that drivers in every other state do?”
Fortunately, the Patrick Administration
is in the process of taking the frustration out of Massachusetts auto
insurance. As Insurance Commissioner, I
am responsible for giving consumers the answers they’ve wanted for some time
now: lower rates for good drivers no matter where they live, more choices and
better products. Through managed
competition insurers can now compete for your business by providing a mix of policy
benefits and setting their own rates while still being subject to my authority
to enforce extensive consumer protections.
Our new system means that we are truly putting Springfield drivers in
the driver’s seat for the first time in 30 years.
In November, our 19 auto insurance
companies unveiled significant rate decreases and innovative coverage options
and discounts. The five largest
insurers put forward rate filings that would cut premiums from 6-11%. Each of these companies reported that at
least 67% of their customers will see their premium bills shrink if they choose
to stay with those companies.
Preliminary estimates from the Division of Insurance show that nearly
half of all Massachusetts drivers will save 10% or more on their 2008 auto insurance
rates.
Our new system also gives companies the
flexibility and incentive they need to compete for market share by offering an
array of innovative products. Insurers
have responded with discounts for good students, low mileage drivers, regular
public transit users, customers who purchase homeowners or renters insurance
with the same company and accident forgiveness for drivers involved in a minor
accident after years of accident-free driving.
These types of options empower consumers with opportunities to tailor
their coverage and drive their individual rates down even further.
I am currently overseeing an extensive
review of each company’s filing. My
team and I will be making certain that insurers play by the rules and adhere to
managed competition’s comprehensive set of consumer protections. Additionally, I also retain the ultimate
authority to disapprove rates found to be excessive or unfair.
Consumers in Springfield will begin to
see the benefits of managed competition in mid-February – that’s when renewal
notices for policies with April effective dates will arrive in the mail and
good drivers will learn the exact amount of their 2008 savings. It’s never too soon, however, to take
advantage of Massachusetts new auto insurance market. Now that the Patrick Administration has put you in the driver’s
seat, contact your insurance agent or insurance companies directly. Make sure they know you plan on making the
most of managed competition by shopping your good driving record around to find
the best possible rates and policy options.
Nonnie S. Burnes is Commissioner of the Massachusetts Division of Insurance.