MA Auto Insurance Programs:

Prior to April, 2008 MA auto insurance consumers had very few insurance programs to choose from. MA “Managed Competition” auto insurance (deregulation) entered the state, along with additional companies, and — all of a sudden –, programs long enjoyed by the rest of the country, are now available here in Massachusetts.

For example:  Vermont Mutual Insurance Company offers an “advantage” endorsement. For $35 this endorsement includes (among other things): accident forgiveness, disappearing deductible, auto loan/ lease gap coverage, & enhanced substitute transportation coverage.

For qualifying new business what this means is, if you have 4 points on your license due to an at-fault accident, you can pay $35 for the advantage endorsement and Vermont Mutual will rate you with no surchage points: saving you big money.

If you are already insured with Vermont Mutual, you can add the endorsement & if you are in an at-fault accident, at renewal time, Vermont Mutual will not charge you for the surcharge points.

The endorsement, to this MA independent insurance agent, seems like a real bargain.

We can all thank MA Managed Competetion Auto Insurance.

Massachusettes Auto Insurance

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

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)

Discount Programs

Massachusetts Insurance Agent should shop your auto insurance with numerous companies …

Your Massachusetts Insurance Agent should shop your auto insurance with numerous companies to ensure you are taking advantage of different discount programs.

Some of the discounts available, include:

Good Driver

Mileage

Anti-theft

Air-bag/Passive Restraint

Mutli-vehicle

Age 65+

T-pass (Public Transportation)

Driver’s Education

Good Student

AAA (Roadside Assistance)

Alumni

Account

Years at Residence

Advanced Drivers Training

Your MA Independent Insurance Agent:

Your MA Independent Agent provides you with competitive rates through numerous carriers. Your MA Independent Agent will take advantage of different discount programs. Your MA Independent Agent will provide you advocasy support at claim time. Your MA Independent Agent will provide you Registry of Motor Vehicles service and expertise.

  • Is a licensed professional with strong customer and community ties.
  • Gives you excellent service and competitive prices because your agent can access the insurance coverage from more than one company.
  • Unlike other agents, your Independent Insurance agent is not beholden to any one company; thus, you don’t need to change agencies as your insurance and service needs change.
  • Assists you when you have a claim.
  • Is your consultant, working with you as you determine your needs.
  • Offers you a choice of Massachusetts insurance plans and programs.
  • Is a value hunter who looks after your pocketbook in finding the best combination of price, coverage and service.
  • Offers one-stop shopping for a full range of products – Massachusetts home insurance, renters, Massachusetts car insurance, business, life and health.
  • Can periodically help you review your coverage to keep up with your changing insurance needs.
  • Treats you like a person, not just another number.
  • Customer satisfaction is the key to a Massachusetts independent agent’s livelihood. So, serving you is a very important concern.

Eight Gas Saving Tips

Gas prices are through the roof. The best way to save gas money is to ride a bike. If that’s not realistic, Massautoquote.com offers Eight Gas Saving Tips:

  1. Go easy on the brakes and gas pedal. Avoid “jackrabbit” starts. Try to anticipate stops to avoid sudden braking.
  2. Avoid long idles. Turn off your engine if you expect a lengthy wait. Idling burns more gas than restarting the engine.
  3. Avoid carrying unneeded junk in the trunk. More weight equals worse gas mileage.
  4. Avoid driving at high speeds. Mileage improves by 15% if you drive 55 mph instead of 65 mph.
  5. Keep air conditioning to a minimum. Try rolling down the windows instead.
  6. If your vehicle has overdrive, use it. It’s more economical at high speeds.
  7. Keep tires inflated properly.
  8. Get regular tune-ups and maintenance checks, both improve gas mileage.

Home Insurance Primer

Home insurance rates have been going up across the country. The best way to save money on your home insurance is to package it with your auto insurance.

The first step for home insurance is figuring out the appropriate amount of coverage. Your Coverage A, Dwelling, amount should represent the “Replacement Cost” of your home. This should be the amount that it would take to rebuild your home if you were to suffer a catastophic loss. The “Replacement Cost” or Dwelling Amount should not be confused with the home’s Market Value.

Once you have the “Dwelling Amount,” the next three parts (B, C, & D) are usually percentages of this coverage amount.

 For example:

Coverage A, Dwelling, amount:                                                                      $300,000

Coverage B, Other Structures (10% of Coverage A amount):                   $30,000

Coverage C, Personal Property (70% of Coverage A w/Replacment)      $210,000

Coverage D, Loss of Use (20% of Coverage A amount):                             $60,000

Home insurance also provides you Liability Coverage (Parts E & F).

Part E, Personal Liability Coverage, protects you from on and off-premises liability claims against you & family members. We recommend limits of $500,000 per occurrence and we recommend you consider Personal Liability Umbrella Coverage that sits over these and your auto limits.

Part F, Medical Payments Coverage, is usually in the amount of $1,000 or $2,000. If provides Medical Payments coverage for anyone (except household members) injured on your property.  

For savings, we recommend you compare deductibles from: $500, $1,000 & $2,500 deductibles. 

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Auto Accident Surcharges in MA

In Massachusetts, unless combined damage is less than $500, drivers that are found “at-fault” are assessed points. If over $2,000 is paid out the accident is considered “major” and 4 points are applied to the driver’s driving record. If less than $2,000 is paid out then the accident is considered “minor” and 3 points are applied. If less than $500, there are no surcharge points.

There are two burdens of proof when it comes to an at-fault accident. The first burden of proof is with the insurance company. Who, in the accident, was more at fault. There are certain “rules of the road” that assit claim handlers when deciding fault. Some example of “at fault” accidents are: taking a left hand turn, pulling out of a parking space, leaving a stop or yield sign, rear-ending someone,  or being in a single vehicle collision. If you have broken one of these “rules of the road,” then you will, most likely, be found “at-fault” for the auto accident.

Once you have deemed found “at-fault” for an accident by the insurance, you will receive a surcharge notice from The Commonwealth of Massachusetts.

The second burden of proof is with the state. Unlike the insurance companies that deem someone at-fault (unless the accident is considered a 50%-50%) for an accident, the state will consider contributing factors in the accident when it comes to applying the surcharge.

In other words, if you rear end someone in an auto accident, your insurance company will find you “at-fault” for the accident and they will have to pay for damages. You will then receive a surcharge notice from the state. For a fee of $50 you can appeal the surcharge. If the accident was weather related, we always recommend our clients fight the surcharge. If there were other contributing factors, such as, ice, snow, rain, sun in the eyes, or the other vehicle suddenly stopped short because a family of ducks were crossing and you rear-ending the other party was unavoidable, then you stand a real good chance of winning the appeal. 

If you have been surcharged for an accident, and if you believe you were less than 50% at-fault, you may contact the Massachusetts Merit Rating Board to appeal.

Merit Rating Board @ 617-351-4400