After years of steady rate reduction, 5 years ago Massachusetts introduced “managed competition.”
As a result, more companies entered the marketplace and the average insurance rate went down even more. Insurance programs long enjoyed by the rest of the country, such as accident forgiveness & disappearing deductible, began to appear.
Then, according to a Boston Globe article (Todd Wallack 5/15/2012) major insurers increased auto insurance rates by a median of 4.5 percent in 2011, and by 4.3 percent in 2012.
In 2013 rates have gone up even more with major increase announcements.
Since 2008 Massachusetts consumers with poor driving records &/or cancelled auto insurance have found huge premiums and restrictive, pay-in-full requirements.
In 2009 Massachusetts had the best uninsured motorist percentage (4%) in the Nation.
We have requested, but not yet received, present uninsured motorist statistics from the Massachusetts Division of Auto Insurance.
We guess the percentage of illegal, uninsured motorists has gone up.
So what happened?
Has competition been a bad thing?
From a professional, pro-active, independent insurance agent perspective: no, not all is lost.
With our help we can actively shop your insurance, well in advance of your renewal, and take advantage of different companies discount, new business and insurance programs.
Many companies give new home buyer, advanced shopper, or new quote, or e-customer discounts which whither or disappear upon renewal.
In addition, with all the rate changes going on, different companies have different appetites for different types of business.
If you annually utilize the services of an active, pro-active, independent insurance agent, you should be able to save money and maximize your protection.
