Mass auto reform great for consumers

Mass Auto Reform Great for Consumers

Simple Guide to Understanding The New Rate System

by Stefany Johnson

Great news- For the first time in 30 years Mass motorists will be able to shop around for the best price and coverages.

How is this different from the old system?

Currently Massachusetts drivers can purchase their car insurance from any state licensed insurer. The rates you pay for insurance are regulated by the state, not the individual insurance companies. Under this system all auto insurers must share the losses associated with high risk drivers who in turn increase the cost of state mandated rates.

The Mass legislature is in the process of creating a competitive auto insurance marketplace

What does that mean to you?

Effective April 1st means insurance consumers can and should compare quotes from different agents. This may require a little homework but it will be well worth the effort. The key for consumers will be to get in the game and start asking questions of their agents. Even with the reform, MA consumers must initiate the discussion with either their existing or a new agent.

How do you accurately compare quotes?

Start by assuming not all policies are created equal. You must do an apples to apples comparison. Ask your agent if you qualify for any special discounts or rewards programs. Consider the benefits of placing your homeowners and auto insurance with the same agency. Make sure the quotes you receive have matching coverage and the same deductibles.

What is the first step?

Call an agent you trust with an established track record and access to more than one or two carriers. Write out a list of questions for the agent. He/ she will need some basic information from you including your MA drivers license number.

What's the biggest mistake you could make?

Doing nothing. No one is going to hand you a few hundred dollars a year unless you ask for it. Be proactive, get off the sidelines and take advantage of this opportunity. It took 30 years to reform.

Next steps:

I recommed choosing an agent who is a member of SIAA. This group seems to have the most choices and best coverages. I have heard good things about the Paul Murphy Agency. You can visit their site @paulmurphyinsurance.com. I know he has a few thousand clients and zero complaints.