Auto rates to drop 11.7 percent
December 18, 2006 -- State Insurance Commissioner Julianne Bowler announced the rate cut 45 minutes before her deadline Friday. The new rates take effect April 1, 2007 and will result in an average decrease of $120 per vehicle and an average statewide premium of $899.
This year’s rate cut marks the third consecutive year rates have been going down and the lowest rate decrease since 1978. According to a press release issued by the Office of Consumer Affairs and Business Regulations, the 2007 rate cut will save Massachusetts drivers $480 million.
“Today’s decision reflects the continued trend of claims decreases, both in Massachusetts and nationally,” said Bowler in a press release. “While this rate decrease is good news for Massachusetts drivers, it is no long-term solution to the problems that plague our system. Our analysis of the 2007 rate case resulted in a substantial rate decrease for consumers as well as an appropriate and adequate rate for those insurers who still write insurance in the Massachusetts private passenger insurance market.”
This year auto insurance companies, consumers and state regulators had agreed that rates should come down, but while Attorney General Thomas Reilly asked for a 10 percent decrease, the insurance companies said they would have liked to see a 3.7 percent decline. Bowler granted drivers an 8.7 percent decrease in auto insurance rate for 2006.
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