What is “managed competition”?
Effective April 1, 2008, Massachusetts introduced a "managed competition" approach to auto insurance whereby insurance companies now file their own rates and coverage options subject to the approval of the Commissioner of Insurance. For the previous thirty years, Massachusetts was the only state in the nation in which state regulators set the rates and coverage options for all companies writing auto insurance in the Commonwealth of Massachusetts.
Who will benefit from these changes? Who will be hurt by them?
Under managed competition, your driving record will have a less significant effect on your premium than it previously did. While most drivers will see their premium go down; youthful operators, urban drivers, senior citizens, renters and unmarried drivers may see only minor premium decreases or premiums rise. For insurance policies that are renewed between April 1, 2008 and March 31, 2009, insurance companies cannot raise insurance rates by more than 10% over the 2007 rates.
Will insurance companies now take my credit score into account when determining my auto policy premium?
No, the commissioner stated that insurance companies are not allowed to use your credit score to determine your auto insurance rate. Homeowners policies do use credit scoring whereas auto policies do not.
Are the rates on the division of insurance website correct?
The rates that are given on this site are very general. Every individual will have their own unique quote depending on driving history, applicable discounts and added endorsements. The rates are not incorrect but they are not a reliable estimate to determine your policy rates. The best way to determine your rate is to speak with an agent that can accurately quote a policy for you.
Are there new coverage and discounts available?
Yes, there are several new endorsements and discounts that vary from company to company. Below are some of the new endorsements that are now available:
Diminishing Deductible
Will automatically reduce the collision deductible by $100 each year a policyholder goes without a chargeable accident up to a maximum of $500.
Accident Forgiveness
Waives surcharge for one at-fault accident every 36 months.
Replacement Cost Coverage on New Vehicles
Pays for the value of a new vehicle if a total loss accident occurs within one year or 15,000 miles, whichever is sooner.
Loan/Lease GAP Coverage
Covers the difference between the loan or lease amount on your vehicle and the payment on a collision or comprehensive covered total loss.
Educator's Advantage
Reduces the deductible to $25 for a covered loss which results from malicious mischief or vandalism on school property when the unsured or his/her spouse is employed by an educational institution.
Trip Interruption Coverage
Provides up to $600 for meals, lodging and other reasonable expenses if a breakdown or accident leaves you without your car more than 100 miles from home.
Pet Injury Coverage
Covers the veterinary fees up to $500 for injuries to your pet if injured while occupying your auto.
How do I obtain more information and take advantage of the new auto insurance changes?
For more information on these and other changes, you can contact our office during normal business hours and speak with a customer service representative or click here and someone will respond to your inquiries. Thank you for choosing Healy Brothers. |
