Auto Insurance

Managed Competition

...and the new changes coming to Massachusetts personal auto insurance on April 1, 2008

Here is an update regarding the widely publicized “managed competition” changes in the Massachusetts auto market that are due to take place for Massachusetts personal auto insurance policies with an effective date of April 1, 2008 or after.

The newspapers and radio stations have been filled with sound bites of changes in the auto insurance market and, for the first time in recent memory, you may be hearing or seeing advertising from some of our state’s larger auto insurance companies. Companies are positioning themselves for their first real taste of competition since 1976. They are developing their rates and talking about adding new features and benefits. At this time, however, companies have only submitted filings and nothing has been approved by the Division of Insurance.

That being said, here’s what we at the Leslie S. Ray Insurance Agency want you to know:

Our agency is extremely well positioned for this change. We represent four of Massachusetts’s largest and most competitive personal insurance companies -- Commerce Insurance Company, Hanover Insurance Company, Safety Insurance Company, and Arbella Mutual Insurance Company. We know that each of these insurers are going to want to retain and grow their respective market shares. They will do this by reviewing their pricing, adding valuable new coverages, and improving customer service. Here is an overview of the policy features and discounts that each company is offering as of April 1, 2008.
If you have trusted us in the past; trust us now and in the future. As your insurance experts, we are monitoring this situation closely so that you don’t have to. We will continue to work with our valued clients to ensure that they have the proper coverage in place to protect themselves and their families – and to provide them with the best value for their dollar.
If it sounds too good to be true, it probably is. Some insurers may attempt to take advantage of all the changes in the market and there will most likely be misleading information all around you. We ask you to take a moment before reacting to that information and give us a chance to evaluate and discuss with you the information that you receive.
Will your auto insurance premiums go down? Our sources tell us that the best premium discounts will go to the best drivers, those with multiple cars, and those that can package their home and auto insurance with the same company. Unfortunately this new “managed competition” also means that your premiums could rise, but no more than 10% over this current year’s premiums. It’s early to tell but those that could see a premium increase will most likely be inexperienced drivers and drivers with a less than average driving record.
What are some of the new features that I can expect to see? Again, it’s early, but some companies may be offering such new features replacement cost coverage for new cars, gap coverage for leased automobiles, forgiveness for a first and only safe driver surcharge, and disappearing deductibles for long time claim free customers. There will be many new product features available and it will be a little confusing. It will also make it more difficult to compare company product and pricing on an “apples to apples” basis. Still, these new features can be valuable additions to your automobile coverages.

We will update this website as more information becomes available. If at any time you want or need more information, please call the agency at 978-927-2600 or email us.