Auto Insurance Reform

Massachusetts residents have been calling for complete reform of their auto insurance system, as they have many problems with their rates. They are the only state that has a commissioner of Insurance who sets the annual rate for all calculations of premiums. The car insurance companies take the numbers that the commissioner gives them and then sets the rate for all car insurance holders in the state.

However, a new group wants that to change. Governor Patrick wants to help the car insurance reform, but wants to ensure that large insurance companies don’t start coming in and setting rates however they please. He wants to ensure that the rates don’t increase so that young and urban drivers can no longer afford insurance.

The new committee will be chaired by state consumer affairs director Daniel Crane, and he wants to work with Insurance Commissioner Nonnie Burns to come to some sort of agreement that makes measured changes possible, and still maintains subsidies for urban and inexperienced drivers. They know that if they cannot afford car insurance, they will simply drive without it.

The group wants to limit rating factors to things like experience, accidents, location, violations, etc. while leaving out other factors like credit scores, occupation, or whether or not you own a home which drive up the rates. They also think that perhaps having a set amount for basic premiums might be good, but make many of the other mandatory coverages optional so that people can bring down their rates if they want to.

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