| Starting April 1, 2008 Massachusetts auto insurance will undergo a major change. Insurers, including the companies we represent, will be able to set their own rates. Previously, the state insurance commissioner set the rates. The state insurance commissioner calls the change “managed competition.” What does it mean? How will it affect you?
Overview of the change
Managed competition is controlled competition. It is designed to open up rate and benefits competition among insurers while maintaining certain protections for drivers. Auto insurance remains compulsory for every driver. And the insurance commissioner maintains authority to reject rates that are unfairly high and underwriting rules that are deemed discriminatory.
Local agent even more important
As a Knight-Dik customer, you already have competitive choices. Because we represent several companies, we are able to shop for you. This is a major advantage of doing business with an independent agent vs. a single company representative.
No question, insurance is complex. With the changes that the new managed competition system for auto insurance is bound to bring, local professional advice and counsel from a local agent becomes all the more important.
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