Car Insurance Discounts May Be Changing

Massachusetts is looking to change the way they handle car insurance and the discounts that some drivers are able to take advantage of. Many drivers currently get different kinds of car insurance breaks depending on where they bank, where they work, how much education they have, etc. But consumer advocacy groups say that where someone works, etc. has no bearing on how they drive, and that if discounts are to be given, then everyone should get the same rates.

The Insurance Commissioner, Nonnie Burnes, says that they are concerned regarding the types of discounts, and says that they will be working to get rid of any stereotypes, or anything else that currently dictates how much you will pay for your car insurance. She says they are also planning on trying to put a one year ban on using consumers’ credit ratings to determine how much they will pay for their car insurance.

The way it works right now, you could be looking at a significant decrease on your car insurance from Safety Insurance of Boston for graduating from Boston University Law School. Or there is Liberty Mutual Group of Boston who gives discounts to surgeons. There is also those that get breaks for having a checking account with a certain bank with a $5,000 balance in it.

All of these discounts are aimed at the higher echelon of drivers in the state and opponents say that the car insurance discounts are going to those who can easily afford full price, while those that are struggling to make ends meet are paying more. The state says that as they start looking into managed competition, many of these discounts are going to go away.



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