January 19, 2012
The Division of Insurance announces the results from the NAIC’s annual report on auto insurance premiums.
Massachusetts has come out on top in a recent report published by the National Association of Insurance Commissioners. In a state-by-state study of auto insurance premiums, the NAIC report found that during the period from 2007 to 2009 Massachusetts saw a 12.7% decrease in personal auto insurance premiums, the largest decrease in the nation.
The average personal auto insurance premium in Massachusetts fell from approximately $1056.92 to $923.11 during the 2007-2009 time period totaling a median savings of $133.80. The Division of Insurance notes that this decrease also occurred at the same time when manage competition was being implemented in the Commonwealth.
“Managed competition helped Massachusetts drivers see premiums drop at a higher rate than the rest of the country, a benefit we expected to be part of this reform,” said Commissioner Murphy. “Consumers have a larger choice of company, coverage and cost under this system, and shopping around for auto insurance can maximize those benefits.”
Managed competition officially started in the Commonwealth in April 2008 to open “…up the marketplace to allow insurance companies to set their own rates and compete for customer’s business.” Since this transition, says the DOI, Massachusetts has added 13 new insurance companies in addition to the 19 already established here under the old system. Of those 13, three of the four of the nation’s largest carriers, GEICO, Progressive and Allstate have opened up for business here.
The NAIC’s annual report was created in response to the rise in interest and attention now placed on auto insurance rates across the country.