State Advising Auto Insurance Customers

There were lower interest rates going into effect come April 1st, and the state of Massachusetts recommended their drivers take advantage of those rates by canceling their policies. Those that already have a policy when the rates went into effect will not get the discount that those who renew afterwards will get.

The way the car insurance system is set up, those that renewed or started a policy in the beginning of 2007 will have to wait until 2008 to get the new rates. Those that start a policy after April 1st will get the discounted rates. Therefore, those that opened or renewed a policy in January, February, and March, are going to want to cancel their policies.

This accounts for about a third of the drivers in Massachusetts, and the State Division of Insurance says that they should call their car insurance companies and see what they can do for them. Otherwise, all of those that renewed before the new date will lose the 11.7% decrease that other drivers will be getting.

They say that you should talk to your auto insurer and see what can be done. Some people can move their renewal date, some will be able to just cancel their policy and then open another one. However, some will experience a financial loss if they change, which is why it is important to check all of their options before canceling. The average car insurance policy will go from $1,018 to $899 with the new rates.

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