- Division of Insurance
Like groceries and other goods, auto insurance premiums are also impacted by inflationary pressures. With labor costs rising, combined with manufacturing and supply delays, insurance companies are paying more on average for the repair of your vehicle when you are in an accident. In order to ensure that they are collecting enough money to cover the cost of future claims, insurers increase their premiums.
When premiums go up, you may want to consider changes to your coverage and shop around for auto insurance with other companies. Just as grocery stores have different prices for different goods, insurance companies have different premiums for different situations, such as whether expensive cars are covered or if there are teenage drivers on the policy. Shopping around simply means you, or your agent if you have one, request premium quotes from several different companies. To make sure you get the best possible comparisons from one company to another, you should make sure that each of the premium quotes you receive are for the identical coverage and limits you wish to purchase.
Changes to Coverage
As you look at your policy, you may want to determine whether your current coverage should be reconsidered. You are required by state law to purchase compulsory levels of liability coverage in case you injure another person or damage another’s property. You can have higher limits of liability coverage, as well as optional coverage such as protection for your own car, and the costs of these coverages can differ from company to company. Companies also offer a variety of discounts for being a member of a specific group, having anti-theft protection or other safety features or being 65 or older.
You should look into what level of coverage is right for your needs, consider dropping features that are unneeded and look into any discounts that could apply. As an example, as cars age, their value decreases and it may no longer be necessary to carry the same level of comprehensive coverage to repair an older car.
Shopping Around
Many consumers don’t realize that you can change your auto insurance carrier whenever you want. You don’t need to wait until it’s time to renew the policy. If you would like to know whether you could be saving money if you switched to a different carrier, you should shop around. Competition is designed to encourage insurance companies to offer their lowest possible premium to each driver. However, the amount that you pay will also depend on your individual situation. Insurance companies group you with other individuals who share your general situation - such as the number of years driving experience, driving record, type of car or location where your car is garaged. You should consider the different rates, benefits, and services offered by the companies as they compete for your business.
About the Mass DOI
The primary mission of the Massachusetts Division of Insurance is to monitor the solvency of its licensees in order to promote a healthy, responsive and willing marketplace for consumers who purchase insurance products. The Division is responsible for regulating Massachusetts’ $60 billion insurance industry and overseeing more than 1,600 licensed insurance companies and approximately 141,000 individual insurance producers. Protection of consumer interests is of prime importance to the Division and is safeguarded by providing accurate and unbiased information so consumers may make informed decisions and by intervening on behalf of consumers who believe they have been victimized by unfair business practices. For more information about the Massachusetts Division of Insurance, please visit www.mass.gov/doi.