Massachusetts Auto Insurance - Massachusetts Auto Insurance Quote
The Massachusetts auto insurance market is a highly regulated one, and the fourth most expensive in the country. Plans are on to make companies share the burden of high-risk policies and in due course introduce market pricing of insurance. Based on a report prepared for the administration, agencies called ERPs (Exclusive Representative Producers) were pointed out as a main reason for the lesser number of auto insurers in Massachusetts. Commonwealth Automobile Reinsures oversees the pool of high-risk drivers. The insurers are assigned ERPs by CAR, and then are responsible for the policies that are written through them. The insurers have no control over the risks, nor can they control the business of an ERP. The ERP could buy another agency with more risks, which further affects the profits of the insurer. Many online quote providers offer Massachusetts auto insurance quotes.
Under Massachusetts auto insurance law, these are the mandatory coverage requirements:
Bodily injury to others - a minimum of $20,000 per person and $40,000 per accident.
Personal Injury Protection (PIP) - Up to $8,000 for you, passengers, pedestrians or anyone whom you have allowed to drive your car.
Bodily injury caused by an insured automobile - a minimum of $20,000 per person and $40,000 per accident.
Damage to someone else's property - a minimum of $5,000.
The Massachusetts auto insurance law has mandated a program called The Safe Driver Insurance Plan (SDIP) that encourages safe driving by awarding a higher share of insurance costs to high-risk drivers. The Massachusetts auto insurance company premium depends on your driving record to a large extent. This program works on a point system in accordance with Massachusetts auto insurance law and applies only to private passenger insurance. Unchangeable incidents are tracked with the point system. These incidents could be instances of conviction of a motor vehicle violation or admission into an alcohol education program. In contrast, credit points are awarded for incident-free years.
Massachusetts Auto Insurance
The Massachusetts auto insurance industry is slowing declining, with fewer companies sharing greater risk. Discrepancies caused by the ERP system in Massachusetts discourage companies out of the state to do business here. Fairly distributing the residual market losses will be the first step to attract good competition. Many insurers feel that ERP reforms are an important step. These reforms are now being taken up by CAR (Commonwealth Automobile Reinsures) and may be phased out over several years. Another step that could attract companies out of the state is to allow the companies to set their own rates. This would make the Massachusetts insurance market more robust. Reform and deregulation are welcomed not just by the insurance companies, but also independent agents who sell policies on behalf of the companies.
The insurance environment in Massachusetts is overseen by the state's Division of Insurance. Chartered banks and small loan companies and mortgage lenders can now sell insurance products under the new changes in Massachusetts insurance laws. The Division of Insurance enforces the state's insurance laws for licensing the insurance brokers and agents. The Division of Insurance aims at monitoring the solvency of its licensees so as to foster a healthy marketplace for consumers of insurance products. Safeguarding consumer interests is of paramount importance and many a time the Massachusetts Division of Insurance has intervened on behalf of consumers who have been victimized. Consumers are assisted in their queries and complaints against insurers and other licensees.
Massachusetts insurance guidelines and consumer information is made public through brochures and consumer education programs. More than 39,000 consumer inquiries were responded to in 2003 by the state's Insurance Division and more than $1.9 million was recovered for consumers. Investigations into alleged malpractices and misconduct are conducted regularly. The Planning & Permitting Department is charged with protecting and improving the community's environment, infrastructure and economy through the establishment of land use policies and ordinances and enforcement of certain public health and safety codes.
