WCVB-TV in Boston does a good job of explaining some of the negative aspects of the advent of competition in the state of Massachusetts. Indeed, some better drivers have not immediately realized the benefits of being a good driver because their rates did not drop significantly – this can be attributed to the formula with which insurance companies calculate rates. As readers of MassDriver.org will note, this exact topic has been central to the debate on deregulation of Massachusetts Auto Insurance since its inception.
It’s important to note that this formula is set to change in 2009, and insurance companies will have more opportunity to provide better drivers with lower auto insurance rates in Massachusetts.