Shopping for Auto Insurance
It is now more important than ever that you shop carefully for auto insurance. Below are some tips for shopping for auto insurance once Managed Competition goes into effect on April 1, 2008.
Consumer Warning
As you may have heard, the Division of Insurance has created a website, called InsureMASS, to help consumers shop for insurance. Please be aware that this site does not allow for accurate price comparisons for the majority of consumers. The prices you will be offered by insurers will most likely be significantly different than the prices you see on this website. You must contact an insurance company directly in order to find out how much you will actually be charged.
Do Some Research
Talk to friends, neighbors, and co-workers about their experiences with various insurance companies. In addition, you can find out how many complaints organizations such as the Better Business Bureau and National Association of Insurance Commissioners have received about each insurer.
Obtain a Number of Quotes
Find out what prices and discounts your current insurance company is offering, but get actual quotes from as many other insurance companies as you can. While this may be time-consuming, it is the only way to really find out what prices, coverages, and benefits are available to you. You can obtain quotes directly from insurance companies that do not use agents by calling or visiting their websites. Other insurance companies only provide quotes through their agents. In order to find an agent that represents the insurance company that you want a quote from, call the insurance company or visit its website.
You can also search for agents by insurance company using the “Detailed Agent Search” feature of the Division of Insurance’s Agent Finder website. Although some agents can get quotes from multiple insurance companies, many can only get quotes from one. In working with an agent, keep in mind that agents are representatives of insurance companies and are paid commissions by insurance companies. You should not count on an agent to find you the best coverage at the lowest price. Also, not every agent can get you all of the available group discounts. In the end, you can only rely on yourself to ensure you get the best available price.
Get Quotes in Writing
Make sure that any quote you receive includes a “coverage selections page” that shows the coverages, limits, and deductibles that you want. Read the coverage selections page carefully to ensure that everything is as you requested and that all information is correct. Immediately point out any mistakes to the insurance agent and/or insurance company and ask for written confirmation of any changes.
Compare Quotes
When comparing quotes, keep in mind that coverages, limits, deductibles, and discounts have big effects on prices. A small difference in even one of these areas can make a bad quote look like a good one. Be aware that different insurers may not offer exactly the same overall benefits. This can make it somewhat difficult to compare quotes.
Ask About Discounts and Benefits
If you do not ask about discounts and benefits, you might not get them. Make sure that you understand how the discounts you are eligible to receive from each insurer will affect your premium, and whether those discounts are reflected in your quote.
Assigned Risk Plan
After April 1, 2009, insurance companies will not be required to voluntarily offer insurance to Massachusetts drivers. Keep in mind, however, that even if an insurance company does not want to insure you, another company still might offer you coverage, so make sure to explore your options. In the event that no insurance company is willing to offer you coverage, you will be assigned to an insurance company by the Massachusetts Assigned Risk Plan (MAIP). While there is no additional charge for being assigned to an insurance company through the MAIP, you may lose out on discounts and benefits and pay a higher rate.
Which Insurance Companies Sell Auto Insurance in Massachusetts?
Insurers that sell direct to consumers:
- Amica
- Electric Insurance
- Liberty Mutual
- Metropolitan Property & Casualty
- Progressive
- State Farm (not accepting new customers)
- USAA
Insurers that sell through agents: