Massachusetts car owners who want to see if they can get a better deal under the state’s new managed competition system may decide to opt out of their existing insurance plans early.
State regulators say car owners may want to see if they can lower their costs with the new rules. Under the old system the state set a single rate for all insurers. New competitve rates go into effect April 1.
But Insurance Commissioner Nonnie Burnes cautioned buyers that before canceling an existing policy, owners should find out if their insurer charges a fee for early cancellation.
She says new insurers may agree to pay the fee while old insurers may decide to reward consumers who decide not to change.
The Massachusetts Association of Insurance Agents, concerned agents would be flooded with calls by consumers looking for early deals, alerted its members to the commissioner’s advice.
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