Competitive Massachusetts Auto Insurance

For the first time in almost 30 years private insurers in Massachusetts are allowed to set their own rates. Under the old system, the state set one rate for all insurers. Massachusetts was the only state that regulators set rates and not the market.

While some people liked the old system, I think consumers will simply go to the insurance company with the lower rates. Apparently the average rate cuts will be 7.7% this year and 46% will drop by 10% or more. I believe this is the best thing that has ever happened for auto insurance in Massachusetts.

* USAA has planned to reduce their rates by 15% on April 1st, if the rate reduction is approved.

* Electric Insurance company filed for a rate reduction of 30% decrease for 5% of their customers, who are good drivers.

* Liberty Mutual lowers rates on average by 10.7%, and will reduce rates by 35% or more for some drivers.

* Hanover Insurance Group plans to lower it's rates by 30% or more for its best customers, and reduce rates by 20 percent for about 40,000 of it's customers.

Are we seeing a trend here? Yes, good drivers are now being rewarded. Consumers can now shop around for auto insurance quotes and look for the best rates.

Competition is great for the market. Insurance companies are used to setting their own rates, and now the auto insurance industry in Massachusetts will become a lot healthier.