Auto Insurance Companies File Rate Changes

BOSTON -- A new era in the state's auto insurance industry is about to begin, and residents are getting the first look at some of the rates being offered.

NewsCenter 5's Kelley Tuthill reported that 19 auto insurance companies filed proposed rate changes with the state.

"It's a great day for consumers. It's a start. We are seeing as much as 30 to 35 percent for good drivers by some of the companies," said Dan Crane, director of Consumer Affairs and Business Regulation.

Amica is promising that its best customers will see decreases of 20 percent or more, and average customers will see decreases of 10 percent.

Final rates will be set by January to go into effect on April 1. Customers will be able to shop around as companies set their own rates for the first time in 30 years.

"In addition to checking with your agent, you want to check with the companies directly on their Web sites. All of the companies will be posting the information on their Web sites. The Division of Insurance will be posting information on their Web site at the end of January," said Peter Robinson, of Fairness for Good Drivers.

So-called managed competition already has its critics, who say it's a bait and switch.

"A company will announce today that the best drivers are going to get a 30 percent rate decrease. That's the bait. The switch is when you actually go to that company to say, 'Well, I am the best driver. Can I have that rate?' They will say, 'You are not eligible for that. We are going to switch you to another tier,'" said MASSPIRG's Deirdre Cummings.