While insurance companies may set their own rates and offer special product benefits and features, the Commissioner of Insurance maintains approval authority. She will exercise tight control over how rates are set; whether they are too high, too low; whether they are arbitrary, discriminatory, unfair, violate public policy? and so on.

¹Goss & McLain Insurance Agency, Inc.

During the one-year transition period, insurers may not use information from credit reports or credit scoring for rating policies effective from April 1, 2008 through March 31, 2009.

¹Goss & McLain Insurance Agency, Inc.

The regulation bans the use in rating of sex, marital status, race, creed, national origin, religion, occupation, income, education, homeownership, and age as against public policy. (The one exception is drivers age 65 and over will continue to receive a discount.)

The regulation bans the use in underwriting, of age, except for the age 65 or older drivers, sex, race, occupation, marital status or principal place of garaging; nor should they use education or home ownership in underwriting.

¹Goss & McLain Insurance Agency, Inc.

Yes. Your collision and comprehensive insurance coverages are transferable to a substitute rented or borrowed private passenger auto that is damaged while it is being operated by you or members of your household with the consent of the owner. There is no coverage under your policy for family friends or significant others. You should be aware that your coverage is available only if you rent or borrow a private passenger auto in the United States or Canada. You should also be aware that your policy does not provide coverage for a borrowed or rented truck. If you are renting a truck, you should check with the rental company regarding the purchase of collision and comprehensive insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation. If the use is for business rather than pleasure, call your agent first. Business use is usually not covered under your personal auto insurance policy.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

If your policy is being cancelled because you have failed to pay your premium, you must pay your exact outstanding premium immediately to prevent cancellation. If you feel that the cancellation is unjust for any reason, you may submit a written appeal to the Board of Appeals at One South Station, Boston, MA 02110-2208. This must be done prior to the effective date of cancellation.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

Yes. Your company must send you a notice at least 20 days prior to the effective date of the cancellation. A notice sent by regular mail with a certificate of mailing receipt obtained from the Post Office is considered sufficient. Certified or registered mail with a return receipt is no longer required.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

Yes. If you or someone on your behalf gives false, deceptive, misleading or incomplete information on any application and if such information increases the insurance company's risk of loss, your company may then refuse to pay claims under any or all of the Optional Insurance coverages of the policy. Such information includes the description and place of garaging of the vehicles to be insured, the names of the operators required to be listed and the answers given for all listed operators. In the event that you have moved since you filled out your initial application, promptly notify your insurance company and the Registry of Motor Vehicles of your new address.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

If the repair of the damaged part impairs the operational safety of the auto, the insurance company will pay to replace it with an OEM part. For non-safety parts, unless your claim occurs during the first 20,000 miles on the auto's odometer, you are not entitled to OEM parts. For autos with more than 20,000 miles, state regulation allows for the replacement of damaged parts with used, reconditioned or after market parts. You can insist on OEM parts, but you will have to pay the difference in cost.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

Your insurance company has the option to take title to your auto when it issues payment on your claim. The insurer is entitled to any salvage value your auto may have. You can, of course, negotiate with your company to purchase your auto for the agreed salvaged value.

²The Offical Website of the Office of Consumer Affairs & Business Regulation (OCABR)

Under the prior “fixed and established” system, Massachusetts law required that you be surcharged for certain accidents and traffic violations. It also set the amount of your surcharge. This system of surcharges was called the Safe Driver Insurance Plan (SDIP). Under the new system, insurance companies will be permitted to develop their own rules, known as a merit rating plans, to determine if and how they will impose surcharges on your premium for at-fault accidents and conviction of moving traffic violations. During the transition to competition, some companies will continue to use the 2007 SDIP Plan; others will “tweak” the 2007 plan; and still others will develop their own merit rating plans. Some of the “tweaked” or new plans created by insurance companies provide for a shorter experience period or an accident “buy-back” or forgiveness features. These new merit rating plans will be subject to approval by the Commissioner of Insurance. Insurers will still be required to report all at-fault accidents and traffic violations to the Merit Rating Board (MRB), the state agency that maintains operator driving history records, and the MRB will continue to provide this driving history information to car insurers. Unlike in the past, individual insurance company merit rating plans may handle the information provided by the MRB differently. A company with an “accident forgiveness” option will not surcharge you for your first accident, and a company with a shorter experience period will drop the points for at-fault accidents and convictions of traffic violations earlier than others.

³Massachusetts Independent Insurance Agent

Competition is designed to encourage insurance companies to offer their lowest possible premium to each driver. Although the majority of Massachusetts policyholders will probably benefit from reduced rates under the new system, the amount that you pay will depend on your individual risk factors, such as your driving record, the territory in which you live, and other rating factors approved by the Commissioner. However, maintaining a clean driving record should decrease your rates.

³Massachusetts Independent Insurance Agent

First. Make sure that your rate has really increased. Compare the types of coverages and coverage limits on your policy last year to the coverages and coverage limits you’ve received quotes for, and make sure they are the same. Also remember that any change to your policy will affect your premium. Changing your vehicle, adding or changing coverages, adding or changing drivers, or changing your car’s garaging location may all increase your premium.

Second. Consider whether you are classified as a high-risk driver, such as one with multiple atfault accidents and/or traffic violations, or one with less than six years experience. If you are, the increase in your premium may be the result of these factors.

Third. Contact your agent or your insurance company for an explanation of why your rates have increased.

Fourth. Once you have learned the reason for your rate increase, you may want to ask your agent to obtain rate quotes from other insurance companies until you are certain you have found the lowest premium for the coverage you want. Remember that if you have had a change in driving history, such as an at-fault accident or traffic violation, your premium is likely to go up in a competitive rating market in the same way as it would have increased under the fixed-and established system.

³Massachusetts Independent Insurance Agent

Insurance companies group you with other individuals who share your risk characteristics - such as the same number of years driving experience. Insurance companies then calculate your individual premium, using the base rate for your group, and then revise your premium to reflect your individual risk factors and appropriate discounts. In determining your actual premium, insurance companies consider your years of driving experience, the number and type of at-fault accidents, the number and type of traffic violations, the vehicle you drive and the principal place where you garage that vehicle. Insurance companies may also consider other risk factors if those factors are relevant to risk and approved by the Commissioner.

Prohibited Underwriting and Rating Factors. Insurance companies are prohibited from using certain factors for either underwriting or rating under Massachusetts law. For underwriting, or the determination of whether the insurance company will voluntarily accept you as a risk, companies are prohibited from using sex, marital status, race, creed, national origin, religion, age, occupation, income, principal place of garaging, education and homeownership. For rating, or the determination of how much your actual premium will be, companies are prohibited from using sex, marital status, race, creed, national origin, religion, age (except for safe drivers who are 65 years or older), occupation, income, education and homeownership. Insurance companies are also prohibited from using credit information from consumer reporting agencies for either underwriting or rating. If an insurance company uses any of these prohibited factors in connection with either the underwriting or rating of your policy, you should file a consumer complaint with the Division of Insurance.

³Massachusetts Independent Insurance Agent

Shopping for insurance can be frustrating. All of the quotes you receive need to be for the same coverages and the same limits of liability. To be sure you are comparing apples to apples, insist that the quotes be based upon the exact criteria. You might consider starting with the coverages that are reflected on the Coverage Selections Page of your current policy. Keep in mind, that quotes you get from insurance companies online will be generic quotes and not necessarily what you need in terms of coverage and limits. Since insurance is intended to protect your most valuable assets – your car, your home, and even your life – you should definitely talk to an insurance professional about the amounts and types of coverage you need. Remember that while price is certainly an important factor in deciding which insurance company to pick, it is not the only factor. Price, discounts, claims handling, the location of an agent, or the financial health of the company are all legitimate factors you might consider in buying insurance. Ultimately, you must decide which features are most important to you.

³Massachusetts Independent Insurance Agent

There are a variety of discounts insurance companies may offer. Some discounts are required by law, such as for passive restraint systems or other safety features, anti-theft devices, low annual mileage and, under certain circumstances, drivers who are 65 years or older. Other discounts are optional, and may include driver-training, advanced driver training, multi-car, good student, student away at school, multi-policy or account, hybrid vehicle, customer loyalty or other Commissioner-approved factors that reduce either the risk or extent of injuries or damage. Some companies will also offer discounts to members of certain approved groups. Whether insurance companies are required to offer a particular discount by law or simply choose to offer it, the amount of those discounts may vary somewhat from company to company. When shopping for your new policy, ask your agent what types of discounts each company offers, and how much each of those discounts reduce your premium.

³Massachusetts Independent Insurance Agent