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Report: Auto insurance premiums drop in Massachusetts

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January 19, 2012|By Chris Reidy

Premiums for personal auto insurance in Massachusetts fell by nearly 13 percent between 2007 and 2009 after Massachusetts stopped setting auto insurance rates, according to a report by the National Association of Insurance Commissioners.

According to the report, the average premium from the end of 2007 to the end of 2009 fell from $1,056 to $923, a drop of $133. Over the same time period, the national average premium decreased by 1.4 percent. The Massachusetts decline of 12.7 percent was the largest drop in the nation over the time period.

Findings from the report were included in a press release issued today by the Massachusetts Division of Insurance.

The release included a statement by Joseph G. Murphy, the commissioner of insurance.

“Managed competition helped Massachusetts drivers see premiums drop at a higher rate than the rest of a country, a benefit we expected to be part of this reform,” Murphy said. “Consumers have a larger choice of company, coverage and cost under this system, and shopping around for auto insurance can maximize those benefits.”