Q: What’s the easiest way to keep low insurance rates?
A: With a clean drivers record.
Not only will you need to pay that speeding ticket, you’ll be paying for it the next couple years on your auto insurance. Insurance companies determine your rates in part by what kind of a driver you are. If you’re a safe driver with no citations, an insurance company sees you as a low risk to insure. If you’re a road-raging multi-major-accident driver, the insurance company may view you a little differently.
Massachusetts determines the magnitude of driving violations with surchargeable points. For example, a major accident will count more points than a 5 mile over speeding ticket. Take a look at how Massachusetts classifies your driving violations:
Major Traffic Violation (i.e., D.U.I.)
Major At-Fault Accident (claim over $2,000)
Minor At-Fault Accident (claim over $500 to $2,000)
Minor Traffic Violation (i.e., speeding)
Each citation adds more than just a few bucks on to your insurance. Avoid these hefty points with safe driving: allow extra traveling time, drive defensively, and buckle up. Your check book will thank you.
According to a state study, auto insurance rates dropped 8.2 percent from April 2008 to April 2009, compared with a 5.2 percent decline from 2006 to 2007. The state allowed insurance companies to start setting their own rates on April 1, 2008, under what officials called a “managed competition’’ plan. Previous to that, auto insurance had been highly regulated.
The new deregulated system for auto insurance in Massachusetts is showing signs of success!
The number of auto insurance carriers offering plans in Massachusetts has increase by 50% since deregulation last year. Companies that have not been in Massachusetts are coming in. They are now able to offer discounts to compete for the business of Massachusetts drivers!
The Commonwealth Automobile Reinsurers collected data and found that the number of drivers classified as a high risk is at an all time low in decades. To give you a better perspective of how much this has dropped, the percentage of high risk drivers was above 60% in 1988. It is currently at 3.5%!
It’s statistically obvious that the deregulation of the market has proven to be beneficial thus far but it has also received consumer praise. More than 71% of all drivers have voiced there support of the new system. Why wouldn’t they? Drivers are saving!
Look into your options at massdrive.com if you are not happy with your current provider. The Massachusetts auto insurance market has changed and you could be eligible to receive the benefits!
Other companies that have recently changed their auto insurance rates, according to published reports, include Commerce Insurance Co. of Webster, which is lowering its average rate 4.5 percent; Liberty Mutual of Boston, which is raising its average rate 4 percent; and Quincy Mutual Fire Insurance Co., which is raising rates an average of 3 percent.
“After four successive years of declining rates, including last year’s 10.7 percent decrease, loss trends, expenses, and inflation dictated a need to increase rates,” said John Natale, a spokesman for Liberty Mutual, which is based in Boston.
Plymouth Rock announced new discounts available through their “savings pass” also knows as the MYLES (Make Your Life Easier Services(SM)) program. In addition to current discounts on auto-related purchases from select retail partners which may total hundreds of dollars for some customers, they have added discounts on Thule car racks and driver training taken at Driven Advanced Drivers Training. As MSNBC.com reports, Plymouth Rock also is rewarding their customers for driving less.
In this release by Electric Insurance Company, the company encourages Massachusetts Auto Insurance customers to forgo comparison websites and shop with it directly, citing the availability of inducements and discounts on its own cite. We can’t say that we agree with Electric, though we do like their insurance products! Comparison sites like MassDrive.com and others give Massachusetts Insurance customers the broadest range of choice and prices for their unique needs. Go ahead and compare – no matter what anyone tells you!
Why does it make sense for most Massacusetts auto insurance customers to compare? A few simple reasons:
Insurance companies sometimes have vastly different rates that can cost or save you money
Depending on you and your family’s unique situation, certain insurance companies will offer benefits that will save you the most money
Comparison shopping will inherently give you more information about the auto insurance process in Massachusetts