Summary of Mass. auto insurance recommendations

In its report, Gov. Patrick’s auto insurance study group set forth these key recommendations:

1. The insurance commissioner should examine alternatives to move towards competitive rating using flex-bands, while maintaining affordability for all drivers, minimizing disruption to the market and maintaining consumer protections. This may include, but is not limited to, allowing price flexibility for all coverages or continuing with a “fixed and established” system for compulsory coverages while allowing price flexibility in optional coverages.

2. Existing rate subsidies for urban and inexperienced drivers should be maintained.

3.Rating factors should be limited to the current rating factors: years of driving experience, number and severity of at-fault accidents, traffic violations and territory. Massachusetts should continue not to use other factors such as: credit scores, homeownership, level of education and occupation as rating factors.

4. The commissioner should delay implementing any assigned risk plan until able to meaningfully evaluate the results of the 2006 redistribution of exclusive representative producers (agents) and subsequent revisions to the rules of Commonwealth Automobile Reinsurers. If inequities continue, the commissioner should give serious consideration to an assigned risk plan.

5. The commissioner should implement a streamlined approval process to allow insurers to set rates and seek approval for endorsements providing enhanced coverages or premium reductions to the standard auto policy.

6. The Safe Driver Insurance Plan should be examined for opportunities to more accurately reward safe driving.

7. Cost containment initiatives should be implemented to reduce accidents and the number and cost of claims.

8. Steps should be taken to provide consumers with more information to assist them in purchasing insurance.

Topics Auto Massachusetts