deregulation


Progressive Falls Behind

Flo, the popular Progressive personality, will bring higher premiums with her quirky commercials and price zapping gun this quarter. Progressive entered the Massachusetts auto insurance market two years ago with rates attractively lower than most competitors. The lower premiums however have not endured as Progressive raises their rates for a fourth time since their debut in 2008. The new price increase of 6.63% will raise prices a grad total of about 16% over the last two years.

Andrew Quigg, a Progressive executive in charge of the company’s Massachusetts business states,”We’re still very competitive… Thousands of consumers still shop around and find us to have the lowest cost for auto insurance.” Even so, Progressive has become less and less attractive to the Massachusetts driver as time continues to provided a history of constantly increasing premiums. If these price increases continue to follow their repetitive pattern, Quigg’s statement is unlikely to remain true for long.

Insurance commissioner Joe Murphy told the Boston Globe he believes the deregulated auto insurance market, “has been wildly successful.” And successful it has been. The Massachusetts Division of Insurance reports drivers saved $270 million in the first year of deregulation. Eleven new insurance carriers have entered the Massachusetts auto insurance market since the new system emerged. Before deregulation insurance rates were set by the government and depended upon the driver’s location and driving record only. The new market allows insurance carriers to offer discounts from holding a AAA membership to owning a home. Deregulation holds great potential savings for drivers state wide.

Some critics of the newly deregulated system find it difficult to compare prices through the plethora of new auto insurance carriers. Adjusting to a new system may difficult for some, however it does not have to be difficult for you. MassDrive Direct Auto Insurance understands you have better things to do with your time than compare auto insurance quotes while understanding it is an important process. Here at MassDrive we quickly gather your basic information and compare auto insurance quotes for you!

No longer will you need to worry about comparing rates, coverages between quotes, or stress about discounts – MassDrive has your back. We compare quotes through various Massachusetts insurance carriers helping you find the best price and saving you time. One carriers may offer discounts another does not, in comparing your information through various carriers we help you get the most bang for your buck. And the best part? The quotes are completely free! Give MassDrive a call, one of our friendly representatives will compare your quotes saving you time and money.

Murphy New Insurance Commissioner

Joseph Murphy has been named the new Commissioner of the Massachusetts Division of Insurance. He has acted as commissioner since September 2009 after Nonnie Burnes resigned from the position. Serving as first deputy of commissions since 2006 he has played an active role in the transition to managed competition. However this is not his only qualifying position, Murphy has also served as: chief of staff and research director of the Joint Committee of Financial Services and the Joint Committee on Insurance in the Massachusetts legislature.

Murphy Massachusetts Governor Deval Patrick appointed Murphy to the position. Deval publicly recognized Murphy for his outstanding role in the administration’s auto insurance deregulation and day to day operation of the division including its 130 employees and $12 million budget  since Burne’s resignation.

“Joe deserves a significant amount of credit for the success of managed competition and is a leader in our efforts to stabilize health insurance costs for small businesses. He has a keen understanding of the issues that matter to consumers and insurers alike, and will use his knowledge and experience to help us move forward on auto insurance reform, health care cost containment and a host of other initiatives.”

Governor Deval Patrick

You Don't Have to Settle, It's Time to Shop Around!

As you may have heard, recent studies showed that coverage costs did not decrease in Massachusetts after deregulation of the market. Although an increase in insurance carriers in Massachusetts has allowed for more options, many drivers are sticking with their current plans. I’m here to tell you that you don’t have to settle for a plan you are unhappy with!

Here at MassDrive we understand that reading through multiple insurance policies is not the best way to pass time. That’s why we are dedicated to doing the work and helping you find the best insurance company, with the best coverage, at the best price, for all your needs.

Deregulation

New reports are showing that deregulation of the insurance market is not proving to be successful. “When the Division of Insurance introduced the new deregulated auto insurance system nearly two years ago, they contended that this system would result in better rates for consumers,” said Attorney General Martha Coakley in a statement. “While the long-term results of this new system remain to be seen, our office is concerned that consumers may not, in fact, be getting the best rates and the protections they deserve.”

This report from Attorney General Martha Coakley, points out that one of the main causes from increased rates is the lack of consumers shopping around. Shop around! If you do not shop around you are not going to get the best policy for your dollar. The deregulation has brought in more insurance providers so it is important for consumers to take advantage of this and save some money!

Allstate returns after deregulation

For decades, Massachusetts was one of the few states that still operated their insurance market under strict regulations. These regulations forced all providers to offer the same product, essentially eliminating all competition between companies.

On April 1, 2008 the whole playing field changed when deregulation of policy prices was set in place. Since then, big things have been happening. With the return of Allstate to the Massachusetts auto marketgenerates some serious competition now.

This puts the consumer at an advantage because discounted rates are now given out to good drivers. The only problem is that it takes more work on the consumer’s part to compare all of the rates. At least that’s what the problem used to be; now you can compare the most affordable Masachusetts auto insurance policies!

About CPA Staff

Mike is in charge of the 'colors and shapes' of Next Generation Insurance Group as well as the front-end development of the site (like this page). A long time standing deck enthusiast, Mike does his best work up-right and rocking out, with the occasional riff of air guitar, to heavy metal bands. Mike attended Northern Kentucky University, is a founding member of Team Do Stuff and a skilled home brewer.

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