Massachusetts Auto Insurance System

Many drivers in the state of Massachusetts don’t understand how their car insurance works. They say that they couldn’t explain car insurance to anyone even if you paid them to, because the system just doesn’t make sense. They say that the state decided that regulators, rather than market forces, were the best ones to set auto insurance rates. But that is as far as they can get in their explanation.

The state has some of the highest auto insurance rates in the nation, but they cannot keep popular companies from surviving in their state. Because auto insurance rates are usually competitive in nature, for this is how it is done in other states, it is possible for customers to get good rates as companies vie for your business. But not in Mass.

Here the state decided how much everyone will pay, and because of that there is no choice for the drivers and they have to take what they can get. But Governor Mitt Romney had people trying to find a solution to the auto insurance mess, but left office before anything was done about it.

Now, Governor Deval Patrick is trying to see what he can do for auto insurance rates in the state as well. He had a group studying the impact of car insurance on the state, and they came up with the idea that the state should move to a competitive market for car insurance. The panel says that they need to get better rates for drivers, but they also said that the rules that Romney had come up with for high-risk drivers need to be slowed down some so that they can be properly evaluated.

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