Before Deval took office there was a “grassroots” movement sponsored by the industry itself to “reform” the auto insurance system in Massaschusetts. That plan failed when the backing of it plus the provisions that insurance companies could deny coverage based upon a host of issues not related to safe driving.
Well, mention was made today of a new plan to “reform” the auto insurance system in Mass and this one takes effect in April.
The fact is that auto insurers don’t want to insure people here because of government regulations. Competition has solved none of our problems. Yes, one might have more choices between crappy vs crappier insurance but in the end I think it’s safe to say rates surely won’t go down and we will go through yet another cycle of lowered “benefits”.
Oh, didn’t the insurance industry foot some of the bill for Deval’s Innaugural Extravaganza? Just though I’d bring that up.
I really dont get why no one seems to care that much about this. Personally, I have close to state minimums and pay $1100 a year. Next Year, however, I’m looking at a 45% increase in premiums because of 6 surcharge points that are being added to my driving history (dont ask). But under this new system, who knows how much ill be paying? (ive only been licensed for 2 years)
I find I rarely agree with you Lasthorseman, but on this you raise a really important issue.
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I was very surprised to hear Deval’s support for this yesterday. I haven’t looked into it yet so I don’t know if it’s got the same problems as last years as far as “the provisions that insurance companies could deny coverage based upon a host of issues not related to safe driving” but if there is any of that it seems like a really bad idea. I think some relaxation to set the specific prices on the part of the insurer, but the criteria used must be relevant and well regulated by the state. I have to wait until I see more about whether I could possibly support it, but right now it seems a stange move.
lately I am running into more and more things which even in small ways translate into a lower lifestyle. You might “pay less” for something only to find out later that you got a raw deal. Yes, we can “fix” your car with Joe’s junkyard used parts, or maybe Bondo. Have you tried calling your insurance company lately? Do you even get a real person?
The current system is an out dated form of price control that not only infringes upon free market competition, in fact actively reducing it, it also keeps rates up by limiting choice. Currently only two or three insurance companies are available to the Massachusetts consumer and one of them, Commerce, thrives and depends on the near monopoly the state has granted it through subsidization and regulation.
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That said a completely deregulated system would be a disaster since insurance companies check things irrelevent to the driving record like credit reports, home ownership, mortgage payments, and what town you live in. Essentially you are punished living in a higher risk town even if your own driving record is flawless.
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So the solution would be similar to what our Governor is doing, open it up to free market competition, quit having government set rates, but also through legislation ban the unscrupulous practices of predatory companies by ensuring that only the drivers record is used to determine the risk of the insurer takes when giving him a policy. Not where he lives or how he spent his money.
To regulate or not the regulate, that is the option. In my book the more government gets out of the regulation business the more Satanic life gets.