Based on a survey conducted by the state Division of Insurance, it showed the benefits of the ‘managed competition auto insurance system’ for the last one year in Massachusetts show carriers added to individual agencies to nine auto insurance companies. The survey also shows a dip in drivers who are not insured and the market written policies.
The average premium based on each automobile witnessed a dip in the year when it was part of managed competition. As for the reports from DOI, from the year 2006 to the year 2007 this dipped only to 5.2%. The state earlier had given insurance companies the levy to fix rates on auto insurances until April first of 2008.
The reports showed data from the 90s to 2008 where private auto insurance decreased to 19 which was at 35 earlier. It also shows an introduction to nine auto insurance companies such as Occidental, Liberty Mutual’s Peerless and Progressive. There has also been two other carriers Allstate and GEICO.
The initial period of managed competition the state of Massachusetts show a savings of $270 million based on the premiums amounts with the average decreased to 8.2% which had dip to 5.2 % from the year 2006 to 2007.
Survey reports also show more than 60% of the consumers in the market don’t buy insurance coverage directly instead they prefer an insurance agent’s assistance and guidance. Almost 19% of the consumers are expected to save with this new rule in effect.
Some of the added results also include many who kept to a target coverage option, after its policy renewal, and many had an inclination to higher the coverage than to bring it down and a many more consumers tend to go ahead and invest in another coverage.
Ethnic groups like Hispanics, Asians and African-Americans showed a tendency to increase the coverage. Survey results also show a decline in high-risk drivers, a huge 13% dip in uninsured automobiles on the streets of Massachusetts from April of 2008.
Survey results also showed an increase of 42% of their customers being satisfied with the auto insurance options available in Massachusetts when compared to a small 3% one year back. It is also seen that nearly 80% of the companies represent four or more insurances when compared to the old policy where these companies represented just one insurance company, making it easy for consumers to pick the best policy at the best rates available.
In conclusion the beginning of the policy showed a very positive trend and has been accepted by the consumers, although the it may need to made available to a wider group and many need to be given a thorough knowledge on the subject.