Consumer News And Recalls

BOSTON (WBZ) ― Massachusetts has officially opened the state's auto insurance market to more competition. So what does this mean for drivers and their policies? Wbztv.com spoke to Jack Skala of MacIntyre, Fay & Thayer Insurance Agency and Camile Chesnick of LoPriore Insurance Agency to get answers to some frequently asked questions.

Q: What if my auto insurance policy is not up until later this year?

A: (Skala) You can still shop around, but you'll be considered a lower priority. Insurance agents are taking care of April, May and June policies. We will shop for them, though. 
 
(Chesnik) There is something called a short rate penalty which says within first moth of a policy you can cancel without penalty, so if your policy is renewing in July, chances are you'll be equal between penalty and savings. (Click here to find out how you can lower your premium.)


Q: Will their policy be different because they had to wait longer?

A: (Skala) I can't image people would be "cheated" out of a lot of money. If you have a clean driving record, there will not be a huge difference between this year and last year's premium – maybe a few hundred dollars. 

(Chesnik) The rates are driven by a lot of other stuff that was not available before: homeownership, renting, owning condo... It's driven by gender, students with good grades… If your single female and don't own house, you really won't save too much.


Q: Has your company been flooded with calls about the auto insurance rate change?

A: (Skala) Not really. We tried to contact all our customers in advance. We let them know that we were going to shop around and get the best rate for them. We were very proactive. 
    
(Chesnik) We were flooded a little bit more at the tail end of February and the middle of March – mainly with people renewing in March who were looking for new rates. We've had no calls today… They're going to be a bit more sporadic.


Q: So if I'm shopping around on my own, what should I do to make sure I get the best deal on my auto insurance?

A: (Skala) You basically have to call the different companies and find a place you like. Comfort is very important. 
    
(Chesnik) You can go on the Division of Insurance Web site to compare some companies. If your thinking (a company) may have the best rate, contact them. Ask them to submit a quote in writing. At that point, you should bring it to your agent. When going to another company, they could be giving you a quote that's not comparing apples to apples.


Q: What happens if you end up not liking the insurance company you picked?

A: (Skala) Once your new policy is enforced, it stays in place for a year. You can change in the first month, but after that, there is a penalty – a short rate penalty: ½ of 1 percent for each month. (Note: This rate decreases as your policy year progresses.) 
    
(Chesnik) Depending to where you are (in your policy) you are subject short rate after one month.


Q: So what kind of difference will good drivers see with the auto insurance competition?

A: (Skala) There is not going to be a huge difference in auto insurance companies. You are not going to see $600-$700 difference. If you do, there's something wrong. Massachusetts got its rates down over the past few years. For good drivers – the rates were not bad for them ever. Rates for bad drivers were high, now they're very high. 
    
(Chesnik) I think most people will go down more than others. Some policies will be based on what a company is looking for.


Q: Can you haggle your rate with the insurance companies?

A: (Skala) Sure. You could say "This is what I got from this company, can you match it or beat it?" There is not going to be a huge difference in auto insurance companies. 
    
(Chesnik) Many companies are not going to have the ability to match, but you need to look at what the coverage is. No one had to understand insurance before. Now they have to understand it because there are a lot more decisions to make.


Q: Is there anything else drivers should know about the auto insurance change?

A: (Skala) Squeaky clean people already have a sweet deal. People with bad records are being treated worse than before. If you have plural accidents or multiple convictions, you're in trouble. 
    
(Chesnik) I think they need to proceed cautiously. They need to see what their level of comfort is... Do they want to sod more work themselves if they get in an accident? Level of service is going to be a sticking point.


Skala also notes that we're currently under state "managed" competition. That will go away, and down the line, the rates will go up. 

It is important to note that you will save money on your policy if you have your home and auto insurance with the same company.

He stresses that people should not spend every waking hour searching for a way to save a few bucks on their policy. Insurance companies are going to change every year, so people should really make sure they feel comfortable and can trust the company they are committing to.

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