By Hugh Son and Erik Holm

May 18 (Bloomberg) — Allstate Corp., the largest publicly traded U.S. auto insurer, and Warren Buffett’s Geico Corp. are re-entering the Massachusetts car market after the state deregulated pricing for the coverage.

Allstate set Nov. 2 as its target date to return after an absence of about two decades, pending approval from regulators, the Northbrook, Illinois-based insurer said today in a statement. Geico started offering online quotes to Massachusetts drivers today, the company said in a separate statement.

Massachusetts was the last state to give up the authority to set rates in a plan designed to increase competition among insurers and reduce prices for customers. The state revoked the 31-year-old controls last year. Progressive Corp., based in Mayfield Village, Ohio, re-entered the market in 2008.

“As far as I am concerned the floodgates are wide open in Massachusetts right now,” said Kevin Johnson, an independent agent with Johnson & Rohan Insurance Agency in Lynnfield, Massachusetts, about 14 miles (22 kilometers) north of Boston. “It is good news for the consumer.”

Johnson said the state’s insurance regulation kept many companies from entering the market and he is cheered by how much that has turned around since the rules fell about a year ago.

Allstate will become the 11th company to enter the market since the state revoked controls in April 2008, Massachusetts Insurance Commissioner Nonnie S. Burnes said in a statement.

‘Benefits’ in Massachusetts

“This filing further demonstrates that managed competition is working and Massachusetts consumers are reaping the benefits of automobile insurance reform,” Burnes said.

Even before deregulation, auto rates in the state were declining. The average decrease in 2007 was about 12 percent, according to the state. Massachusetts ranks last among the 50 states in seatbelt use, according to National Highway Traffic Safety Administration data released last month. Seat belt use is 67 percent in the state, compared with a national average of about 83 percent, the NHTSA said.

“The recent changes set a new direction, giving insurers greater flexibility,” Allstate said in the statement.

Allstate is the second-largest auto insurer in the U.S., behind State Farm Mutual Automobile Insurance Co., according to 2008 data from the National Association of Insurance Commissioners. Geico, owned by Buffett’s Berkshire Hathaway Inc., passed Progressive for the third spot in that ranking.

Policyholder-owned State Farm, based in Bloomington, Illinois, doesn’t actively market new business in Massachusetts. The company, which serves drivers who move there from other states, has no immediate plans to expand in Massachusetts, said Dick Luedke, a spokesman for the insurer.

Allstate left the Massachusetts market about 20 years ago, said Kate Hollcraft, a spokeswoman for the company.

To contact the reporters on this story: Hugh Son in New York at hson1@bloomberg.net; Erik Holm in New York at eholm2@bloomberg.net.

Last Updated: May 18, 2009 14:51 EDT

Effective 4/3/2009 The Registry of Motor Vehicles made some, not so subtle, fee changes. Included in the changes are:

Registration Fees:

Amendment                   $25.00  (from $15)

Duplicate                         $25.00  (from $15)

License & ID Fees - Issue and Renewal:

Class A, B & C                 $75.00

ID /Liquor ID                 $25.00

Out of State License Conversions:

Class A, B & C                  $125.00

Title Fees:

Certificate of Title           $75

Salvage Title                    $50

Other Fees:

Instant Issue License/ID           $75.00

Driver History                              $20.00

Driving Records                            $20.00

Accident Report                            $20.00

Reducible Load Permit Amendment           $20.00

Rudicible Load Permit                  $50.00 minimum

Return Check/CC Fees                 $15.00

Other proposed fee increases to be phased in or require legislative approval:

Passenger Vehicle Registrations, Class D License, Duplicate License, Amend/Remove License Restriction, Driver Education Final Exam, Certified Copy of License, Registration or Title Information, School Bus Reinspection Fee.

Save on your Auto Insurance with Travelers of Massachusetts.

For the first time in three decades, Massachusetts drivers can shop around for competitive rates on car insurance. While it may sound simple, we know the new policy choices can be confusing. Getting an accurate premium quote, and a policy that makes you feel secure with your coverage, requires consideration of several variables - driving record, type of vehicle, years of driving experience, and others. There are also many additional discounts and incentives available under the new competitive system. Taking advantage of these benefits can potentially save drivers 25 percent or more!

Start saving today
The new system of insurance can also mean new savings. Travelers of Massachusetts offers competitive car insurance rates and a variety of discounts to Massachusetts drivers. Speak with an agent to identify the discounts that you’re eligible for:

• Pay in Full — Earn a 3% discount if you pay your full premium within 5 days of your policy effective date. Restrictions apply. Contact your Travelers of Massachusetts agent for additional details.
• Multi-Car — Earn a discount of up to 5% if you insure two or more automobiles with Travelers of Massachusetts.
• Age 65 and Older — If you’re a policyholder age 65 or older and the primary driver on a policy, you may be eligible for up to a 25% discount. There must be no inexperienced operators (fewer than 6 years driving experience) on the policy and the vehicle must not be customarily used for business. Restrictions apply.
• Air Bag / Automatic Seatbelts — Earn a discount of up to 25% if your vehicle is equipped with air bags or automatic seat belts.
• Annual Mileage — Earn a discount of up to 10% if your annual mileage (verified) falls between 0-5000 miles. Up to a 5% discount is available if your annual mileage (verified) falls between 5001-7500 miles. Please note: antique vehicles are not eligible for this discount.
• Anti-Theft Device / Vehicle Recovery System — Earn up to a 36% discount if your vehicle has a qualifying anti-theft device installed. Your insurance agent can provide you with a list of the qualifying anti-theft devices and the corresponding discounts available.
• Public Transit Commuter — A public transit discount of up to 10% (up to a maximum of $75 per eligible vehicle) is available if you provide your insurer with evidence of purchase of 11 months of commuter passes from qualified transit systems, and you do not drive your automobile to work or school. Supporting documents required for proof of eligibility.
• Sponsored Marketing Group Discount — You may qualify for a discount if you are a member of one of our sponsored marketing groups. View sponsored marketing groups.

Credit Factors
Credit factors provide additional ways to save on your auto insurance with Travelers of Massachusetts. Our credit factors are available for hybrid vehicles, good students, customer who have eligible property insurance policies, and customers who are members of roadside assistance programs.

Credit factors are applied to specific coverages in the calculation of the premium for your policy. As a result, the impact of a credit factor on the premium you pay will vary based on the interaction of your individual rating characteristics and the coverages you select.

• Hybrid Car — If you insure a hybrid vehicle with Travelers of Massachusetts, a 10% credit factor will be applied to the premium calculation for compulsory coverages (Parts 1, 2, and 4) and, if selected, optional coverages (Parts 5, 7, 8 and 9).
• Good Student — A 5% credit factor will be applied to the premium calculation for compulsory coverages (Parts 1, 2 and 4) and, if selected, optional coverages (Parts 5, 7, 8 and 9) if the driver assigned to the vehicle is an exceptional high school, college or university student between the ages of 16½ and 24. Students on the Dean’s List, Honor Roll, those in the upper 20% of their class, or students maintaining a B average or better (3.0 and above) qualify for this discount. Supporting documents must be provided to add this discount at the beginning of the policy term. Click here to obtain a Good Student Certification Form.
• Companion Policy — A credit factor (described in the chart below) will be applied to the premium calculation for compulsory coverages (Parts 1, 2 and 4) and, if selected, optional coverages (Parts 5, 7, 8 and 9) if you have a homeowner, tenant or condo policy written with Travelers or a homeowner policy written with another carrier.

  Company	Policy Type	Credit Factor
  Travelers	Homeowner Dwelling	7%
  Other Carriers	Homeowner Dwelling	4%
  Travelers	Tenant or Condo	3%

• Roadside Assistance — If you, or a principal operator of an insured vehicle, is a member of a qualifying roadside assistance program, a 5% credit factor will be applied to the premium calculation for optional coverages (Parts 7, 8 and 9). Qualifying roadside assistance programs are those which are purchased at a fair market value, independent of the vehicle purchase transaction, and provide roadside services and towing assistance throughout the Continental United States.

We’ll be there when you need us
Accidents happen even to the best drivers. How your insurance company handles your claim is the true test of their value. Travelers of Massachusetts is dedicated to providing all of our customers with fast and convenient claim service around the clock, 365 days a year. Plus, our ConciergeCLAIM Program provides customers with worry-free claim service from start to finish. Learn more about ConciergeCLAIM.

In order to best protect assets we recommend parents register & insure vehicle’s in their child’s name. In Massachusetts parents are provided 100% insulation from lawsuits arising from bodily injury or property damage claims.

Mass. MGL Chapter 231, section 85A: “If a car is registered to the child and the child gets into an accident causing personal injury and/or property damage, there is no responsibility on the parent. It does not make any difference who bought the car or who pays for the insurance, or how old the child is so long as we are talking about negligence.”On this basis it might make sense for you to consider insuring a vehicle in your child’s name. Talk to your Massachusetts Independent Insurance Agent to discuss.

• Advocasy support

Your professional insurance agent provides advocasy support in the event of a claim or billing issue.

• Markets 

Your agent should shop your insurance with a number of companies to find you the best rates and coverage.

Statement from Nonnie S. Burnes, Commissioner of the Massachusetts Division of Insurance:

“Over the last year, the Division of Insurance has made a number of changes as a part of introducing managed competition to the Massachusetts auto insurance market. These efforts were focused on creating a consumer-focused environment for drivers to shop for, and buy, auto insurance. Throughout the year, six new insurance companies have entered the state to write auto insurance and created hundreds of jobs. As a result of the transition to managed competition, the market now offers consumers more choices, lower rates, greater flexibility, and ultimately the opportunity to find the best insurance.

As a part of these changes, the Division of Insurance proposed an alternative means of addressing at-fault accidents and accident disputes to replace the Board of Appeals as currently structured. We had every confidence that this new plan would protect consumers and offer them a fair resolution; however, we have heard the concerns voiced by the general public. Responding to those concerns, today we are announcing that we are maintaining the Board of Appeals and its accident resolution review process. We look forward to continuing the progress that managed competition has already demonstrated and ensuring consumers experience every benefit the competitive market has to offer.”

I bought new tires for my 2003 Nissan Pathfinder the other day. The first new tires since I bought the vehicle in December of 2003. 56,000 miles ago. I whinced at the cost, $640 installed but, after thinking about it, realized it is a value. My vehicle handles great, it feels like a new car!

Following please find some Tire Maintenance tips offered by The Rubber Manufacturers Association (RMA), they recommend getting in the habit of taking five minutes every month to check your tires, including the spare:

Pressure	Underinflation is a tire’s #1 Enemy. It results in unnecessary tire stress, irregular wear, loss of control and accidents. A tire can lose up to half of its air pressure and not appear to be flat!
Alignment	Is your vehicle pulling to one side, or shaking? A bad jolt from hitting a curb or pothole can throw your front end out of alignment and damage your tires. Have a tire dealer check the alignment periodically to ensure that your car is properly aligned.
Rotation	Promotes uniform tire wear. Regularly rotating your vehicle’s tires will help you achieve more uniform wear. Unless your vehicle owner’s manual has a specific recommendation, the guideline for tire rotation is approximately every 5,000 miles.
Tread	Measure it — and inspect it. Advanced and unusual wear can reduce the ability of tread to grip the road in adverse conditions. Visually check your tires for uneven wear, looking for high and low areas or unusually smooth areas. Also check for signs of damage.

I was also reminded of the penny test:

Place a penny into a tire tread groove. If part of lincoln’s head is covered by the tread, you’re driving with the proper amount of tread. If you can see all of his head, you should buy a new tire.

Everyone is price happy. I understand why. Times are tough. If you can save a buck and carry identical coverage, why not switch? The problem is that, too many times, people shop to get the best rate and pay secondary attention to their coverage. Auto insurance is asset protection. It  can protect the value of the vehicle that you are driving and protects you from lawsuits.

On the Massachusetts auto policy, Part 5, Optional Bodily Injury to Others, is your lawsuit protection. These limits will pay out for injury to another person, in an at-fault auto accident. In addition to these limits, companies provide legal defense. We recommend our clients carry, at least, $100,000 per person/$300,000 per accident. When you carry improved Part 5 limits you are, in essence, carrying improved legal defense.

Parts 3 and 12 protect you & occupants from other, Uninsured or underinsured vehicles that injure you in an accident. When their limits are insufficient, you can go to your own policy for protection. Parts 3 & 12 help pay for things such as: medical bills, lost wages, pain & suffering, physical therapy & rehab. Parts 3 & 12, generally speaking (& in our opinion) are “good stuff.” Parts 3 & 12 limits should always match your Part 5 limits. On the Mass. auto policy, you cannot carry higher Parts 3 & 12 than you do Part 5. It’s the states way of saying that you cannot insure yourself better than the people you may injure.

Recently we quoted a vehicle that carried Part 5 limits of $100,000 per person/$300,000 per accident and Parts 3 & 12 state-minimum limits of $20,000 per person/$40,000 per accident. They carried $500 deductibles for Collision (Part 7) and Comprehensive (Part 9).

It was a price-conscious, competitive situation, so we showed identical coverage and were able to save them $120 annually.

We recommended they consider increasing their Collision deductible from $500 to $1,000 and save an additional -$160 per year.

Our new customer was thrilled with the $280 annual savings but, from my perspective, there was a problem. Their Parts 3 & 12 were at state minimum, $20,000 per person/$40,000 per accident limits.

For an additional $42 per year, they agreed it was a good idea to match these limits with their Part 5 limits of $100,000 per person/$300,000 per accident.

We were able to improve their coverage and save them $238 annually.

It’s a blog attack. I read somewhere that there are 20,000 new blogs created everyday. Holy Mackeral, that’s a lot of blogs. Makes this Massachusetts Auto Insurance Blog feel kind of … small. Still, for as small as we may be, we find ourselves at the epi-center of The Battle for Massachusetts Auto Insurance. As witnessed by April 1, 2008 Managed Competition, it’s a cage match. No holds barred. The independent agent has had to justify our existence. We have had to sharpen our pencils, dust off the rating software and we have had to transfer business. We have also lost business like never before. As of April 1, 2009 this “cage match” becomes The Thunder Dome (Mad Max). GEICO arrives and MAIP requirements no longer apply. It’s “go time” for the independent agent.