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-Frequently
Asked Questions-
1.
What exactly does auto reform mean?
Since the 1970’s Massachusetts has had the auto rates for private passenger
autos set by the Insurance Commissioner. This heavily regulated method was
adopted in response to some of the highest auto rates in the country. Rates were
established with a consideration given to keeping rates affordable in areas of
the State that had higher loss ratios than others. The thought being that if
rates were set too high in these areas the number of uninsured drivers would
increase dramatically. Consequently, over the last 30+ years consumers have no
reason to shop their auto insurance because the price was the same wherever they
went. Effective April 1, 2008 this all changes. Carriers will have the ability
to set their own rates and compete for your
business.
2. What if my policy is effective December of
2007, can
I cancel and rewrite to take advantage of the competition on April 1, 2008?
Yes, but your existing policy would be cancelled with a cancellation penalty
which would most likely surpass the savings you would receive. This is an issue
to discuss with your agent to weigh the pros and cons.
3. What factors will impact my rates?
This has been a big part of the reform debate. Insurance companies
had requested the right to order credit reports on drivers as well as use marital status and education as a part of their rate calculation. The Insurance Commissioner
has denied that request for at least the 2008 to 2009 policy year. Factors that
will be used will be:
4. Should I go online and get a quote from the
direct writers I see on TV?
Geico, State Farm, All State etc are not licensed at this point in
Massachusetts. When they do become licensed the
carriers currently operating in the State will be competitive with their
pricing. In addition, realize you may not be quoting coverages that you want
when filling out an online quote request. For that advice, call
Phillips Insurance Agency.
5. What else will change April 1, 2008?
Different carriers will start adding new coverage options to make their policy
more attractive. For instance some carriers may add coverage to pay off a loan
if the value of a totaled car ends up being less than the loan or lease value.
Coverages, deductibles, credits, billing plans, etc... will all change.
These, and more, are the reasons why consumers will benefit from a
competitive auto insurance system.
If we haven't answered your question, please send us an
EMAIL
New options may be confusing, but Phillips Insurance Agency has the
experience and knowledge to help you understand your auto insurance choices.
Fill out a Quick Quote today to receive
a free auto insurance quote.
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