It was not long ago that Massachusetts was known for having the highest auto insurance rates in the country - and it seemed that rates kept climbing year-after year. Not anymore! According to a study by the National Association of Insurance Commissioners the average auto insurance premium in Massachusetts declined by 12. 7% from 2007 to 2009, compared with a 1.4% decrease nationally. Although Massachusetts' 2009 average premium of $923 was still high compared to many states, it was lower than neighboring Rhode Island, Connecticut and New York!
Many factors contributed to the decline in auto insurance rates including: better roads, better cars, and better driver training for young drivers. But the advent of "managed competition" in Massachusetts in 2008 also meant that insurers needed to compete for our business with lower prices. What a difference that has made!
Our customers have seen a similar drop in their average auto insurance premiums as seen below:
In fact, our customers' average premium declined by more than 17% from 2007 to 2009! Although rates are starting to increase, we are still seeing average premiums that are much lower than 2005.
Why are rates increasing now? The main reason is that medical costs (for injuries sustained in accidents) have been rising. Also, today's safer cars are becoming more complicated and expensive to repair.
It's important to remember that there are still ways to save premium dollars during times of rate increases. Let one of our insurance professionals review your coverage to make sure you are receiving all the discounts you deserve. And to get the best discounts combine your home and auto insurance through our agency.
Call us today!