Campaign for Fair Auto Insurance Reform (FAIR)

What's New

Did your insurance rates increase this year despite being a good driver? We want to hear about it.

Under the new “managed competition” auto insurance rating system in Massachusetts, many good drivers will receive rate increases and many bad drivers will receive large rate decreases, based on factors having nothing to do with their driving records, according to our new report entitled ‘How You Drive’ Takes A Backseat to ‘Who You Are’: (Mis)Managed Competition in the New Massachusetts Automobile Insurance Market.

Starting April 1st, factors relating to “who you are” – income, marital status, homeownership, education, age, race, and other factors supposedly prohibited by the Division of Insurance for use in setting rates – will take center stage in the Massachusetts auto insurance market.

Tell Us Your Story:
If you are a good driver (SDIP 99) whose rates did not go down by the predicted 10%, or increased, please let us know. We will review the information and may use it to improve the process. We may follow up for additional information. Click here to tell us your story.

Important contact information:

The Attorney General’s Office Auto Insurance Comment Line
(866) 928-8667
Insurancefeedback@state.ma.us

The Division of Insurance – insurance regulators
1-617-521-7794

Your Driving Record: Merit Rating Board
617-351-4400

Overview

Automobile insurance is a significant, legally mandated household expense, without which consumers place their financial security and livelihood at risk.

Under the guise of “fixing the system”, many auto insurers along with and some lawmakers launched a campaign to dump our regulated insurance rate setting process for a largely unregulated one.

MASSPIRG opposes efforts to eliminate our hard fought consumer protections. Deregulating the system will result in higher rates over the long term, higher rates in the short term for urban and younger drivers, insurers using unrelated factors to driving to set rates (marital status, education, type of job, and credit scores to name just a few), and failure to address the real cause of our high rates---our highest-in-the-nation accident rate.

Resources:

AN ACT To PROVIDE FOR FURTHER CONSUMER PROTECTION IN AUTO INSURANCE 10/24/2007 (PDF)

Leaders and Organizations in Support of: AN ACT To PROVIDE FOR FURTHER CONSUMER PROTECTION IN AUTO INSURANCE 10/24/2007 (PDF)

Summary of AN ACT TO PROVIDE FOR FURTHER CONSUMER PROTECTION
IN AUTO INSURANCE 10/24/2007 (PDF)

Letter to Commissioner Calling for Disclosure of Insurance Declinations 9/26/20 (PDF)

Mayor Menino calls for fair insurance rules 9/10/2007 (PDF)
Letter to the Governor signed by 10 Consumer Groups Calling for Preserving Ban on Unfair Auto Insurance Practices (PDF) 8/1/2007
Members of the Auto Insurance Task Force Call for Consumer Protections in Auto Insurance regs 7/19/2007(PDF)
Statement: New Insurance Regulations Better for Insurers than Consumers .7/15/2007
The National Consumer Law Center's report, "Credit Scoring and Insurance: Costing Consumers Billions and Perpetuating the Economic Racial Divide," 7/3/2007 (PDF)
The Massachusetts Automobile Insurance Study Group3/15/07
MASSPIRG fact sheet about the auto insurance bill HB 5021
6/5/2006 (PDF)
Bad Process and Bad Bill 6/5/2006
CFA calls attention to Unfair Underwriting practices by GEICO 3/14/2006 (PDF)
Myths and Facts about Auto Insurance Reform (PDF) 11/14/2005
The Limitations of a Competitive Auto Insurance Market:
How to Reduce Rates and Increase Insurer Profitability Simultaneously. 11/23/2004

A broad coalition of lawmakers, consumer groups and insurance agents announced their support today at the State House for a new bill which would ensure that auto insurance rates will be based on consumers’ driving records and not on unrelated or discriminatory factors. read the release

Insurance Reform News

Two Insurers Undermine Massachusetts Auto Insurance Competition	3/24/2008
Rates to Increase for Many Good Drivers and to Decrease Substantially	2/28/2008
2008 Average Auto Insurance Rate – “no urban myth”	11/28/2007
New Auto Insurance Rates Are Worse Than Originally Reported	11/26/2007
Consumers Need to Be Aware of an Auto Insurance Bait and Switch	11/08/2007

Insurance Reform In The News

Auto plan rates a closer look	3/01/2008
Motorists' records may be underrated	2/28/2008
So much for insurance savings	12/02/2007
AG calls for more cuts in car rates	11/27/2007
Critics: Don't let insurers use credit scores	9/21/2007

Report

The Massachusetts Automobile Insurance Study Group

The Commissioner of Insurance should examine alternatives to move towards competitive rating using flex-bands while maintaining affordability for all drivers, minimizing disruption to the market and maintaining consumer protections. This may include, but is not limited to, allowing price flexibility for all coverages or continuing with a “fixed and established” system for compulsory coverages while allowing price flexibility in optional coverages.