A new law that brought competition to the Massachusetts auto insurance market last year has had a beneficial effect on premiums. Increasingly, drivers in the state are able to compare auto insurance rates from a number of companies to find more affordable options.
Massachusetts was the last state in the country to deregulate its insurance market, moving from a system in which the Massachusetts Division of Insurance (MDI) set insurance rates to a system of managed competition.
According to a survey conducted by MDI, consumers saved over $270 million in insurance premiums in the first year of managed competition and average premiums per vehicle dropped 8.2 percent.
Insurance Commissioner Nonnie Burnes said new companies entering the market "further demonstrates that managed competition is working and Massachusetts consumers are reaping the benefits of automobile insurance reform."
Since liberalizing its insurance market, 11 insurance companies have re-entered the state, including some of the biggest insurance companies in the country.
Kevin Johnson, an independent insurance agent outside of Boston, said the state's insurance regulations previously kept many companies out, a situation that has improved under the new regulations.
Get matched with auto insurance companies FREE at RateMarketplace.com.