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.

Massachusetts Auto Insurance Blog

Why a Blog? I, never in my life, thought of myself as a blogger. Yet now, here I am, blogging. My name is Kevin Johnson and I am one of the owners of the family agency, Johnson & Rohan Insurance http://www.johnsonandrohan.com in Lynnfield, MA. 

We launched Massautoquote.com in 1999 to provide Massachusetts’ consumers a free, internet insurance quoting service.  

As of April 1, 2008 the auto insurance system in Mass. moves to a “managed competition” system. Now, for the first time since 1977, insurance companies can charge whatever they want for auto insurance rather than the state-set rate of years’ past.

So, why a Blog? The Massautoquote.com Blog is our attempt to demystify the changes in the auto insurance system and to educate Mass. consumers about different discount and coverage programs.