Auto Insurance Companies Lose Battle

Auto Insurance companies in the state of Massachusetts are not very happy right now. They have been fighting the state in the courts in regards to high risk motorists and they just lost their court case. They think that they are being taken advantage of in the state and that some newer auto insurance companies have been getting a better break than they have. They say that they are simply not going to take it anymore and took their case to the Supreme Judicial Court. However, the court did not see it quite the same way that they did.
 
The auto insurance companies aid that the then commissioner Nonnie S. Burnes had “exceeded her authority” and that she was favoring new auto insurance companies over the existing ones. They said that she told them that they did not have to cover high risk drivers for two years, thereby changing the auto insurance rules. They said that as they did not have to cover them they were able to offer better auto insurance rates than the existing companies, who were still required to cover them.
 
Since Barnes made the decision to change the auto insurance rules, eleven new companies have entered the Massachusetts market. The state’s court obviously saw it the same way that Barnes did as they upheld her decision. They said that they did not see the favoritism that the existing auto insurance companies were claiming.
 
Barnes was attempting to bring in a much more competitive auto insurance industry for their residents, and in changing the rules she did so. She said was attempting to make rates better for them, and to give those auto insurance companies that were already in the state more leeway to change their rates. Obviously the auto insurance companies did not see it that way.

Back to February 2010 Archives