Opinion 2: Comish Promises Savings
By Nonnie S. Burnes
Special to the Worcester Business Journal
Fortunately, the Patrick Administration is in the process of taking the frustration out of Massachusetts auto insurance. As Insurance Commissioner, I am responsible for giving consumers the answers they've wanted for some time now: lower rates for good drivers no matter where they live, more choices and better products.
Through managed competition insurers can now compete for business by providing a mix of policy benefits and setting their own rates while still being subject to my authority to enforce extensive consumer protections.
In November, our 19 auto insurance companies unveiled significant rate decreases and innovative coverage options and discounts. Each of the five largest insurers reported that at least 67 percent of their customers will see their premium bills shrink if they choose to stay with those companies.
Added Incentives
Our new system also gives companies the flexibility and incentive they need to compete for market share by offering an array of innovative products. Insurers have responded with discounts for good students, low mileage drivers, regular public transit users, customers who purchase homeowners or renters insurance with the same company and accident forgiveness for drivers involved in a minor accident after years of accident-free driving. I am currently overseeing an extensive review of each company's filing.
My team and I will make certain that insurers play by the rules and adhere to managed competition's comprehensive set of consumer protections. Additionally, I also retain the ultimate authority to disapprove rates found to be excessive or unfair.
Consumers in Worcester will begin to see the benefits of managed competition in mid-February when renewal notices for policies with April effective dates will arrive in the mail.
Nonnie S. Burnes is commissioner of the Massachusetts Division of Insurance.
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