MA auto insurance rates are all over the map (insurance agent humor: All over the MAIP lol).

Recently our Agency utilized Vermont Mutual’s accident forgiveness endorsement and lowered a woman’s rates, living in Lynn, MA from $2,100 down to $1,465.

Meanwhile, we also improved her Parts 3 & 12 to match her Part 5 limits of $50,000 per person/$100,000 per accident.

Parts 3 & 12 are Uninsured & Underinsured Motorist Coverage.

These limits are important and often over looked.

Uninsured Motorist Coverage (Part 3) protects you & occupants from other driver that may be driving without insurance. If they injure you, this coverage allows you to collect under your own coverage for things like medical bills, lost wages, pain & suffering etc.

Underinsured Motorist Coverage (Part 12) protects you & occupants from other drivers that have less (Part 5) coverage than you have. If they injure you, you can collect the difference between what they carry and what you carry.

* Note: you cannot carry higher Parts 3 & 12 than you do Part 5 (Optional Bodily Injury to Others) Coverage.

We recommend that your Parts 3 & 12 limits match your Part 5 limits.

Insurance companies are all vying for MA auto insurance market shares.

Some national insurers have eliminated the independent insurance agent. Some have embraced the agent. Some have tried to do both.

Why is a MA Independent Agent important?

Your Agent is important because they write many lines of insurance with many different companies. They represent more than just one company.

Do you pay extra for a MA Independent Auto Insurance Agent?

No. Your independent agent will shop for the best rates, with the best companies. Your independent agent shops for discounts that are available to you. Your agent will review all your insurance products and package them together to find you the best rates.

Someone recently asked for an example of our MA Auto Insurance: Wild West analogy &, this morning I ran into a perfect MA auto insurance rating example.

Longtime client has an old (99) Honda Accord with, almost, 200,000 miles on it. She lives in Dorchester & carries mimimum-type liability limits ($20,000 per person/$40,000 per accident parts 3, 5 & 12; $100,000 Part 4; No Collision & No Comprehensive Coverage). Not to name names (Travelers) was charging her $1,019 for her June 2, 2010 auto insurance renewal.

We re-rated her with six MA auto insurance companies and one (Vermont Mutual), offers identical coverage at an annual premium of: $576.

$576 vs $1,019!

This is a, not so subtle, reminder to auto insurance consumers & agents in the Commonwealth of Massachusetts: Shop Your Coverage!

A while ago, in a Bloomberg News article regarding competition in MA,  I was quoted as saying “the floodgates are wide open in Massachusetts right now.”

With all the rain we’ve had recently, the auto insurance floodgates in Mass. are not only open, they are under water.

In order to find the best rates and best coverage, it is important to be able to shop multi-companies’ discount programs.

I recently signed up a woman who lives in Everett, MA with an April 1, 2010 effective date. She had 3 points on her license from an accident that happened in 2006.

Her policy limits were:

Part 5, Optional Bodily Injury to Others: $50,000 per person/$100,000 per accident

Parts 3 & 12, Uninsured & Underinsured Motorist Coverage: $20,000 per person/$40,000 per accident.

Part 4, Property Damage Coveage: $100,000

Collision & Comprehensive Coverage with $500 deductibles.

Her annual premium, with 3 points (licensed over 6 years) was: $2,300.

By utilizing a company named Vermont Mutual ($35 Vermont Mutual Advantage Endorsement) we were able to waive her 3 point surcharge (Accident Foregiveness credit).

We improved her Parts 3 & 12 (protects her & occupants from uninsured & underinsured drivers) to match her Part 5 limits at $50,000 per person/$100,000 per accident & we increased her Collision deductible from $500 to $1,000.

Her new annual premium?

$1,299.

(vs. $2,300)