What does this mean to Massachusetts drivers?

Question

Take A look !

On April 1, 2008, auto insurers will begin to set their own rates. This system is known as "managed competition." The basic auto policy in Massachusetts is the same, with minimum coverages that are mandated by Massachusetts law. But now insurance companies can also offer a variety of coverages, limits, and deductibles that were previously not available.

What does this mean to Massachusetts drivers?

Will that really give us more opportunity to save>?

What about later on? When Insurance company will compete agaisnt each other and rates will be higher???

Im buying a new car I had Commerce Insurance...

Any recomendations for a better insurance?

Each auto insurance will give out more discounts and others others less ...

Let me know what you think !

Thanks!!

Answer 1

This will mean more companies will come to MA, there will be different pricing for each company & you will be able to shop rates.  I know for a fact GEICO & Progressive are both in the process of getting licensed in MA to sell auto insurance.  I'm sure others will follow suit.

I would wait a few months after April 1st because sometimes the approval process will take a few months & you may not have a huge amount of choices right away.  Then, start shopping.

Prices will be adjusted for each company's claims experience (how much they pay out in claims for the state) so some premiums will go up, some will go down, you get to choose.  One company may be much better at service & claims so you may be wliling to spend a little more to have them.

Change is scary for most people but competition is always good.

Answer 2

Here is a newly developed website that will answer your questions.  

Not included in the list of insurers who's rates have been approved and also offer various discounts are Liberty Mutual and Amica.  Progressive will enter the Personal Market May 1.  

http://www.massauto.com/index.cfm