The Massachusetts Association of Independent Insurance Agents offers a great “Find an Agent” tool. If you are looking for a local agent, this can be a good place to start.?
Moving to Massachusetts
Welcome to Massachusetts!
It’s a new day & age in Massachusetts auto insurance. After 30 years of state set insurance rates we finally have competition. Well, “Managed Competition,” at least. Rates have gone down and new companies have entered the marketplace.
A few “fun facts” about Massachusetts:
- Nickname: The Bay State
- State Bird: Black-Capped Chickadee
- State Tree: American Elm
A couple “not so” fun facts:
- Massachusetts has the highest accident rate in the nation.
- Massachusetts has the 4th highest auto insurance rates in the nation.
Massachusetts Auto Insurance
Auto insurance and Registration (& Title) go “hand in hand” in Massachusetts. You cannot have one without the other. Massachusetts does not have insurance cards as proof of insurance. Instead you have your vehicle’s Registration. Your Registration is your proof of insurance.
Massachusetts is a “Title state”, meaning that, in order to get your vehicle registered you must also get the vehicle titled in Massachusetts.
In order to get your new, Massachusetts Plates you will need to get paperwork from your insurance agent or company.
Johnson & Rohan Insurance , as well as other agencies, will have you sign an auto insurance application, and provide you with an insurance stamped, RMV-1 Form.
Most Agencies offer free Registry of Motor Vehicles service.
If you are new to the state with out of state registration, the Registry will look for your original title and a total of $86 ($50 for your new MA title & $36 for your new, MA plates/registration).
If a bank/lienholder has the title to your vehicle then, perhaps, a memorandum title can be issued. If so, the Registry will require a copy of your existing Registration and, if owned less than 6 months, proof of sales tax paid.
We recommend that you get a Massachusetts auto insurance quote through our website. Once you like the premium and coverage options that we show you, we will assist you with all aspects of Massachusetts insurance!?
MAIA Cautions Consumers About Progressive Quotes
On May 6, 2008 The Massachusetts Association of Insurance Agents issued a bulletin to member Agencies regarding their press release cautioning consumers about Progressive Insurance’s auto insurance quotes. As a consumer service, the bulletin is as follows:
MAIA Cautions Consumers About Progressive Quotes;
Files Formal Complaint With DOI
Today, MAIA issued a press release to every daily newspaper in the state cautioning consumers about serious issues with quotes received from the Progressive Direct website. After initial reports of “dirt cheap” rates, MAIA took a long, hard look at the quotes produced by the site.
According to MAIA President and CEO Frank Mancini, “Our review of the quotes provided by Progressive reminds us of the old saying, ‘it it looks too good to be true, it probably is.’ Consumers should use extreme caution when requesting online quotes because a computer doesn’t ask the questions a live person would ask to be sure you are adequately protected.”
Since many of MAIA’s issues with the website are believed to be serious violations of the managed competition regulation, MAIA has also filed a formal complaint with Commissioner Nonnie Burnes and notified Attorney General Martha Coakley and Undersecretary of the Office of Consumer Affairs & Business Regulation Daniel Crane of the violations.
The most flagrant violations include:
-
Progressive requires anyone requesting a quote to provide their social security number, gender, recent military service and marital status. The quote process also informs applicants that Progressive obtains credit reports and credit scoring information, which is prohibited in Massachusetts for both rating and underwriting purposes.
-
Progressive acknowledges that Massachusetts law requires that every insurer offer twelve-month term private passenger motor vehicle insurance policies at the consumer’s option, yet there is nowhere on the Progressive site where a consumer may exercise that option. When questioned on the phone about a twelve-month policy, a Progressive representative admitted that twelve-month policies are not available.
-
Comparative quotes of Progressive rates with the rates of other companies writing auto
insurance in Massachusetts are inaccurate and use a policy term of six months which is not
available from any other insurance company in Massachusetts. While other insurance company quotes include an indication of the impact of your driving record in terms of surcharges for atfault accidents and conviction of traffic violations and credits for good driving, the Progressive quote does not appear to include merit rating information.
We have posted the complete text of the MAIA press release on our website, and you may access it by clicking here.
It is imperative that the information in this press release be seen by as many consumers as possible, and we need your help with this. If you have contacts with your local daily and weekly newspapers, please walk the press release into your contact as soon as possible. Offer to answer any questions your contact or consumer reporters have, or refer them to us if you’re not comfortable in that role.
We have also posted a copy of our complaint letter to the Commissioner on massagent.com. You may access this document by clicking here.
Click here to see a copy of the MAIA’s letter to The Commissioner of Insurance, Nonnie Burnes regarding Progressive Insurance.
Kids & Cars
Our Agency recommends that parents, in order to best protect assets, consider registering and insuring a vehicle 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 reponsibility 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 parents to consider insuring a vehicle in their child’s name.?
Advanced Driver Training
By far, the number one killer of teens is automobile accidents. Our Agency, Johnson & Rohan Insurance, promotes safe driving amoung teens and we promote In Control Advanced Driver Training Center. As part of our promotion, one of our companies (Safety Insurance) supplements the cost of the In Control class. Instead of paying the standard rate of $299, Safety insureds pay only $75. In addition, they receive a 5% Open Group discount (Safe Roads Alliance Application Form).
If you would like to discuss, please give us a call at: 1-800-491-1414. Please feel free to use our “Get A Quote” form to get different coverage and premium options from us.
MA Auto Insurance Group Discounts
State-set auto insurance rates in Massachusetts are now a thing of the past.
My business partner asked me yesterday, “How do you think managed competition is going?”
Me? I think, over all, it’s going swimmingly. Our Agency is saving our clients money and we are busy writing new business.
The other night there was a segment on the television show, Chronicle (http://www.thebostonchannel.com/chronicle/index.html), about how to best shop for auto insurance. The consensus was: “talk to your agent.”
After all the politics, after all the corporate meetings and strategizing, after all the millions of dollars spent on advertising and after all the fancy (& some of them fluffy) discount programs, the consensus is: Talk to your Agent.
In our ongoing attempt to demystify the changes in the Massachusetts auto insurance system and to educate consumers about different discount and coverage programs, we offer a list of company “group” discounts.
Group discounts, like the popular AAA discount, have long been the elephant in the Massachusetts auto insurance room. Some of these groups are “open” group discounts that are open to anyone (like the AAA discount); others are “closed” group discounts that can only be received by going through a particular agency or directly through the company. As a disclaimer: some of these may not be complete group listings, certain groups may no longer be available, and the discount percentages may not be 100% accurate.
MA Auto Insurance Discounts
As a public service, Massautoquote.com, offers the following list of Massachusetts Insurance Companies and their April 1, 2008 discount programs.
We recommend that you get a quote from us. Our licensed, independent, professional Massachusetts Insurance Agents use numerous companies and will find you the best discounts and insurance programs.
American Automobile Insurance Company Annual Mileage, Anti-Theft, Multi-Car, Public Transit
Amica Annual Mileage, Anti-Theft, Good Student, Multi-Car, Other Policy, Public Transit, Years Licensed, Years with Company
Arbella Advanced Driver Training, Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit, Years with Company
Citizens Insurance Company of America Advanced Driver Training, Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit
Commerce Insurance Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed, Years with Company
Electric Insurance Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed
Encompass Insurance Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Public Transit, Years Licensed
Farm Family Insurance Company Annual Mileage, Anti-Theft, Daytime Running Lights, Group Membership, Multi-Car, Public Transit, Years Licensed
Liberty Mutual Insurance Company Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed, Years with Company
Massachusetts Homeland Insurance Company Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed, Years with Company
Metropolitan Insurance Company Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Public Transit, Years Licensed
National Grange Insurance Company Annual Mileage, Anti-Theft, Good Student, Multi-Car, Other Policy, Public Transit, Student Away, Years Licensed
Norfolk & Dedham Mutual Fire Insurance Company Advanced Driver Training, Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed
Plymouth Rock Assurance Corporation Advanced Driver Training, Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Public Transit, Student Away, Years Licensed, Years with Company
Praetorian Insurance Company Annual Mileage, Anti-Theft, Multi-Car, Public Transit
Quincy Mutual Insurance Company Advanced Driver Training, Annual Mileage, Anti-Theft, Group Membership, Multi-Car, Other Policy, Public Transit, Years Licensed, Years with Company
Safety Insurance Company Advanced Driver Training, Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Other Policy, Public Transit, Student Away, Years Licensed, Years with Company
State Farm Insurance Company Annual Mileage, Anti-Theft, Multi-Car, Public Transit
The Travelers of Massachusetts (Premier) Annual Mileage, Anti-Theft, Good Student, Group Membership, Multi-Car, Other Policy, Public Transit
USAA Insurance Company Annual Mileage, Anti-Theft, Good Student, Multi-Car, Public Transit, Student Away
Ma Auto Insurance & the little, green lizard
Never in the history of the Massachusetts Professional, Independent Insurance Agent community, have five letters been so feared.
Not, “t-h-e-f-t.”
Not, “f-r-a-u-d.”
And no, not, “c-l-a-i-m.”
I am talking about “G-E-I-C-O.”
Not since my childhood Godzilla days, have I been so scared of a lizard.
For years they have advertised in our proud, Commonwealth and for years I have smugly told customers, “GEICO? They don’t even write insurance in Massachusetts!”
Nationally they don’t use Independent Agents, either.
They use call centers and service centers and they don’t write home insurance.
When you work with an Independent, Professional Insurance Agent you are working with someone who who has your best interest in mind. You are working with someone who will shop your insurance with many different companies to get you the best rate. You are working with someone who is your advocate at claim time. Who, at GEICO, works as your advocate? Who, at GEICO, sells multi-lines of insurance and shops your insurances with many different companies?
Like the chilly winds of our Massachusetts’ autums, it seems inevitable that GEICO is coming. When? I don’t know. 2009? 2010 at the latest, is my guess.
For now, it is up to the Independent Insurance Agent, to get the best rates for our clients, to package policies and to round accounts. It is time to save our clients money. It is time to advise and to advocate. It is time to demonstrate our value.
Rate Review Reality Check
Here we are, Massachusetts, 18 days into “Managed Competition.” Seems like 18 months.
The other day I was (sort of but not really) bragging about this Massachusetts Auto Insurance BLOG and I was told that my four posts were not enough. Shocked, I was told that I need to BLOG more. BLOG more? “Dude, it’s a BLOG and you’re my insurance guy.”
Besides still not being quite sure what a BLOG is (Wikopedia tells me that it’s a “Web Log”), I do know that our Agency has been going crazy learning new rating software, quoting & re-quoting auto and home insurance, applying new discounts and programs, sending out renewals, transferring customers, cancelling policies, writing new business and, probably, drinking too much coffee.
However, and in an effort to BLOG more, I present a Rate Review Reality Check:
18 days into our new “Managed Competition” auto insurance system and , I think, MA consumers are doing pretty well.
I have, however, seen some very real auto insurance rate casualties:
We have a client that lives in Lynn that renewed last year for $1,168. This year: $1,357.
We have a client that lives in Dorchester that renewed two vehicles last year at $2,960. This year: $3,031.
We have a young married couple (licensed less than six years with 4 points & 10 points on their licenses) and their premium (two vehicles) went from $3,201 to $3,498.
So far it appears that new drivers, drivers with points, drivers that live in urban areas and those without a “companion policy” are the ones that are not going to enjoy the heavily advertised discounts.
Added Value
It seems to me that for the past thirty years, or so, Massachusetts insurance consumers and Professional, Massachusetts Independent Agents have been pushed around by the insurance industry. Enjoying “state set” auto insurance rates, Massachusetts bloated to the fourth highest auto insurance rates in the country and whithered to only 19 auto insurance carriers. I believe the handwriting was on the wall a number of years ago, Massachusetts auto insurance rates plummeted 26% over the past three years. As of April 1, 2008 Massachusetts moved to a “managed competition” system. This move has been good for most consumers with a statewide decrease in auto rates of almost 8%. The rate casualties seem to be those with 10 or more points on their license and new drivers.
With all the industry changes and as a small business owner, I have found myself working harder and working longer. My wife and three babies wonder who this tie-wearing, slightly stressed out, stranger is. I continue to ask myself, as an Independent Insurance Agency: “Do we add value?” The emphatic answer: YES.
Unlike the Liberty Mutuals and The Amicas, we write insurance with many different companies. We represent our clients, as opposed to representing the companies that we place business with. We spend the time to find out which companies are the best fit for our clients. Some companies have more of an appetite for new drivers, some more of an appetite for the home and auto “account business.”
We are here for our customers whenever they have a claim problem or a billing question. We also offer free Registry of Motor Vehicles service.
We are Professional Insurance Advisors that have the best interest of our customers in mind. We offer multiple lines of insurance and as our customers lives change we are here to assist with all their insurance needs.
Your Independent Insurance Agent should offer a lifetime of insurance products and services:
Parents put their newly licensed child on their auto policy, the child buys his first car, he moves out of the house and gets an apartment, he opens a business, buys an engagement ring, gets married, buys a home, has a child, buys life insurance, puchases a personal liability umbrella policy, gets rich, buys a vacation property, buys the ’65 Mustang Shelby GT350, and retires.
We are here to help every step of the way.