MASSPIRG Stands Up To Auto Insurance Companies

MASSPIRG called on lawmakers and regulators to reject proposals in the Legislature and the Division of Insurance that would eliminate hard-won consumer protections for auto insurance customers.

Just as Massachusetts drivers are finally seeing record rate decreases—over 21 percent in the last three years—some big insurers are proposing changes that would lead to higher rates and anti-consumer rating and underwriting practices.

MASSPIRG’s Legislative Director Deirdre Cummings testified before the Legislature’s Joint Committee on Financial Services and the Division of Insurance on numerous proposals pending that would raise most rates, and alter how insurers can set those rates.

“These proposals all fail to address the single largest factor that drives our premiums—our highest-in-the-nation accident rate,“ testified Cummings. “If we instead pursued comprehensive accident reduction efforts that improved our worst-in-the-nation accident rate to just second-worst, and attacked fraud as the city of Lawrence did, we could cut premiums by approximately 20 percent, or about $200 on average per car, per year.”

While rates have declined, we can do even better by adopting common sense cost reforms.