Mass. Auto Insurance Rates Climb Back Up Despite Deregulation

July 29, 2014

Auto insurance rates that fell sharply after deregulation in Massachusetts are climbing again.

The Boston Globe reports that five years after Massachusetts began to allow insurers to set their own rates, the average premium was about the same as it was before the change.

According to figures from the state Division of Insurance, premiums dropped about 12 percent between 2007 and 2009 to a statewide average of $861, saving the average motorist about $122 per year.

By 2012, the average premium was back up to $974, only $9 less than what it was before deregulation. 2012 was the most recent year that statistics were available.

State officials say deregulation has helped consumers by offering more choice. The number of companies offering auto insurance in Massachusetts has nearly doubled.

Related Articles:
Mass. Division of Insurance Approves 2 New Entrants to State’s Auto Insurance Market
Allstate Agents Returning to Massachusetts After 25 Years

 

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Latest Comments

  • August 1, 2014 at 12:15 pm
    Wally says:
    I would also say that deregulation is a relative concept. In Massachusetts we went from an environment where rates were set by the state to one where they are approved. Not ... read more
  • July 31, 2014 at 10:12 am
    Bay Area Bill says:
    The article provides facts that do not lead to the conclusion that the rising rates are excessive, as the title might lead one to believe; i.e. 'despite deregulation'. It seem... read more
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