I keep hearing about changes in Massachusetts auto insurance rates. What exactly are these changes?

For the first time in 40 years, Massachusetts' auto insurance rates will no longer be set by the insurance commissioner. Previously, the insurance commissioner established a single set of rates to be used by all insurers, so no matter which insurance company quoted your auto insurance, the premium was the same. Now each insurance company will set their own rates so your premium rates may vary from one insurer to another.

How will changes in Massachusetts auto insurance rating affect me?

Most people will likely see a moderate decrease in their insurance premium for auto policies that renew after April 1, 2008, but some people will see an increase. This will largely depend on past driving records and other risk factors.

How can I take advantage of the changes in the auto insurance market?

Through their Renaissance Alliance affiliation, your agent has
access to 80% of the auto carriers actively writing in Massachusetts. This affords you the confidence your renewal policy will be comparatively rated and marketed while you continue to receive personalized service and protection customized to your individual needs.

There are many new factors insurers use to determine your premium so you will need to provide updated personal information. Promptly completing and returning your renewal questionnaire will ensure you receive the best combination of coverage, service, and price including any additional discounts or credits for which you may be eligible. For example, placing homeowners and auto coverage with the same insurer often results in discounts on both policies.

Which insurer offers the lowest rates?

There are many insurance carriers licensed in Massachusetts and no one carrier will be the least expensive option for all drivers. Plus, while price is important, there are other factors that also must be considered, such as appropriate levels of coverage, carrier reputation, and service. We will help you to find the best alternatives at the best prices for your particular needs.

My policy renews before April 2008 - How will my rates be affected?

Rate changes are effective April 1, 2008. Your policy will not be affected until your first renewal following April 1, 2008.

How can I be sure I will get the maximum premium credits available on my automobile policy renewal?

If you or any drivers on your policy qualify for premium credits requiring validation such as the Good Student, Advanced Driver Training, and Motor Club Credits, send these documents to your Renaissance Alliance agent at least 60 days prior to the renewal date of your policy. In addition, you will receive a renewal questionnaire from your Renaissance Alliance agent in advance of the renewal of your auto policy. Please make sure you complete this questionnaire and return it to your agent as soon as possible so discounts due you can be applied to your policy premium.

If I receive my renewal automobile premium invoice from my existing company, how can I be sure the proper discounts and credits have been applied?

If you made a decision with the aid of your Renaissance Alliance agent to remain with your current insurer and you provided the necessary credit documentation 60 days prior to your renewal date, your initial premium billing should be correct.

If your documentation for applicable credits could not be processed by the insurance company prior to your renewal date, your credit adjustments will be processed shortly following the renewal of your policy and, if you are on installment payments, future installments will be reduced. If you have already paid in full, the insurance company will issue a check to you for the return premium.

How are discounts applied to my automobile policy premium?

Discounts may be applied to all or part of your total premium depending on the type of credits to be applied. For instance, Good Driver Experience Credits are typically applied to the entire policy premium. On the other hand, Passive Restraint Credits typically apply only to specified policy coverage premiums that pertain to bodily injury and liability hazards. This is because passive restraints have a direct impact upon reducing the cost of bodily injury and liability claims in the event of accidents.

Will my driving record and Safe Driver Insurance Plan Credits still impact my premium?

Yes. If you maintain a good driving record over three or more years, you will maximize your premium credit savings and keep your automobile insurance costs to a minimum. Moving violations and accidents, on the other hand, will negatively impact your ability to obtain maximum safe driver credits.

What is a Multi-Car Discount?

Multi-Car premium discounts apply if you insure two or more vehicles on the same policy. These typically range from 5% to 15% depending on the number of vehicles on the policy.

What are Loyalty Credits?

Some insurers offer Loyalty Credits to customers who have maintained their coverage with that insurer for at least three consecutive years.

Can I still receive Multi-Policy Discounts if I buy my Homeowners, Condominium, or Renter’s policy from the same insurance company?

Yes. Prior to 4/1/08, many insurers offered Multi-Policy Discounts on Homeowners policies if the customer also insured their auto with that insurer, but similar credits were not applicable to auto policies. Effective 4/1/08, some insurers are now offering Multi-Policy Credits on auto policies. In fact, some insurers have increased this discount on Homeowners policies to retain their current customers who have been insured by the same company for three or more years, similar to the longevity credits for autos.

The discount you can receive on additional policies purchased from the same insurance company should be calculated and considered carefully when you are comparing various automobile premium quotations. Often, Multi-Policy Discounts will be greater than any individual automobile premiums discounts you could secure from one company to the next. For this reason, you have to look at the whole picture, not just one policy.

Can I still receive a discount for being a member of an approved automobile discount group?

Yes. Discounts for approved groups will continue, subject to annual discount adjustments by the insurer. Contact your Renaissance Alliance agent for updated credits and approved groups.

What is a Public Transportation credit?

A discount is available for policyholders who provide evidence of purchase of eleven monthly passes or tickets from a qualifying mass transit system during the automobile policy period. The maximum discount available is $75 per vehicle. Check with your Renaissance agent for specific details on your situation.

What is a Passive Restraint Discount?

A 25% discount applicable to the parts of your policy premium that cover bodily injury to occupants of your vehicle.
Qualifying Passive Restraints approved by the Massachusetts Commissioner of Insurance are:
• An airbag installed for the driver’s seating position
• Airbags installed for both front driver and front outer passenger seating positions
• An automatic seatbelt installed for the driver’s seating position
• Automatic seatbelts installed for both driver and front outer passenger seating positions.

What is the Hybrid Automobile Discount?

A 10% policy premium discount will apply to all Hybrid vehicles. A Hybrid vehicle is a vehicle that uses two or more distinct power sources to propel the vehicle.

What is Diminishing Deductible coverage?

Some insurers now offer Diminishing Deductibles for an additional annual premium. These are also known as Deductible Dividends or Deductible Credits. Purchasing this coverage is a way you can reduce your out-of-pocket expense at the time of an accident. You do this by earning a Collision Deductible Credit (typically $100) for each year you are accident free over a specified number of years. For example, if your policy deductible is $500 and you experience an accident after two consecutive accident-free years, you may receive a credit of $200 to reduce your deductible to $300. In no case can your Deductible Credits exceed $500 or reduce your deductible lower than -0-. Other conditions and limitations may apply depending upon the insurers offering this coverage.

What is Accident Forgiveness coverage?

Experienced drivers with excellent driving records may be eligible for this coverage, which is available from select insurers. If all the drivers on a policy qualify for Accident Forgiveness coverage, the insurer agrees not tocharge applicable accident surcharges to the policy premium upon renewal following the first accident. There may be an additional charge for this optional coverage.

What is Auto Loan or Lease Gap coverage?

For a modest additional premium, this coverage will pay off your automobile loan or lease in the event your vehicle is determined a total loss due to a collision or other physical damage loss to your vehicle. Specific conditions may apply depending on insurers offering this coverage.

What is an “inexperienced” driver?

The Commonwealth of Massachusetts Junior Operator Law designates individuals age 16 to 25 years old and licensed fewer than six years to be inexperienced drivers. Inexperienced drivers will typically pay higher automobile premiums due to the negative combined statistical driving records of this segment of the population.

How can inexperienced drivers reduce their premiums?

There are a number of ways inexperienced drivers can minimize their cost of automobile insurance, and these may vary by insurance companies.

1. Maintaining a good driving record with no moving violations or accidents over a period of years after obtaining a license

2. Obtaining a certificate of completion from an accredited Advanced Driver Training School
Standard Driver Training classes do not currently qualify for automobile premium credits. For more information regarding approved Advanced Driver Training contact the following organizations. Both are excellent safe driver programs and well worth attending for both inexperienced and
experienced drivers.

In Control
www.incontroladt.com

Skid School by Stevens Advanced Driver Training
www.skidschool.us"#CCCC00"

3. Qualifying for a “Good Student” premium credit
Good Student Credits are available from some insurers to inexperienced student drivers who submit evidence of their grades in one of the following categories:
• High School
• Undergraduate and Graduate College & University
• Vocational School

And one of the following:
• Grade B (3.0) or better
• Honor Roll or Dean’s List
• Upper 20% of class ranking

4. Being a student driver at an accredited educational institution more than 100 road miles from the driver’s automobile principal place of garaging. In other words, the student does not have access to the vehicle while away at school.