December 14, 2000
FOR IMMEDIATE RELEASE
CONTACT: CAROL LANIGAN, 573-7308 OR
DIVISION OF INSURANCE ANNOUNCES CUT IN PERSONAL AUTO INSURANCE RATE
(BOSTON, MA) The state's Division of Insurance today announced it has approved an -8.3% decrease in the Massachusetts private passenger auto insurance rate for 2001. The rate, effective January 1, 2001, represents an average savings of $78 per insured vehicle and an average annual rate of $862.01.
"This is great news and a well-earned reward for Massachusetts motorists. It proves that improved driving habits can reduce auto insurance costs to consumers," said Jennifer Davis Carey, Director of the Office of Consumer Affairs and Business Regulation.
In announcing the rate reduction, Insurance Commissioner Linda Ruthardt acknowledged that evidence submitted this year supports the decrease in the average rate. "This decision reinforces the fact that the cost of auto insurance is largely driven by our habits behind the wheel."
The decision in the 2001 private passenger auto insurance rate case marks the 5th time in seven years that a reduction in the average rate has resulted. Since 1994, the average rate has been reduced by 24.9%.
Earlier this year, the insurance industry suggested a +2.5% increase in the average rate, which was subsequently amended to a +0.7% increase. The State Rating Bureau recommended a -14.1% decrease in the average rate, which was revised to -12.9%. The -8.3% decision by Commissioner Ruthardt translates into a savings of $294 million in 2001 auto insurance premiums.
SOME CONSUMER FACTS