Before 2008 Massachusetts auto insurance rates were set by the Massachusetts Commissioner of Insurance by the fix-and-establish system. The previous system relied on zip code and driving record to determine rates, in the new deregulated system carriers use their own methods of calculating rates and has in result increased competition saving driver’s money on auto insurance.
With managed competition new advantages have surfaced in the Massachusetts auto insurance market including: additional insurance companies, independent agencies have gained additional carriers to represent and the state has experienced a decrease in number of uninsured motorists. From the early 1990s through up to 2008 the number of insurance companies offering private passenger auto insurance had fallen from 35 to 19, however in the first year of managed competition nine companies entered Massachusetts’ auto insurance market. According to the Department of Insurance average premiums per vehicle on the road have decreased 8.2 % in the first year alone!
Under managed competition insurance providers can give additional discounts previously unavailable. For example an insurance carrier can give a driver discounts for holding a AAA membership or owning a home. It is important to also realize that providers may chose to or not to impose surcharges for traffic violations but cannot use at-fault accidents that took place more than six years prior to your policy effective date.
Although it is important to note auto insurance is under managed competition. This means although auto insurance companies may chose to set their own rates, the state of Massachusetts must approve them. Insurance carriers may also offer differing discounts, almost necessitating a driver shop differing carriers. Start shopping today by calling MassDrive where a representative will compare insurance quotes from multiple carriers for you!