Auto insurance. There’s no getting around this one.
If you own a car in Massachusetts, you can’t drive without it.
And now there’s a new law that allows insurance companies to compete for your business. Sounds like good news, right? Well, we found some drivers will indeed pay less, but some will actually pay more!
How can you make sure you’re getting the best deal possible? Let us help steer you in the right direction.
1. Should I just call insurance companies and shop around?
Well, it’s not like shopping for a TV. First, talk to your agent or insurer and even check out different websites. Then you need to compare specific proposals, written just for you. Experts say the quotes offered online are usually only estimates and may not be completely accurate.
2.If my policy doesn’t expire soon, do I have to stick with it?
You usually have about a month from the date your policy began or renews to make a change. If you want to change before that, sometimes you can. In that case, ask if there’s a cancellation fee or what’s called a “short rate.” Still, it may be worth taking the hit. If the penalty is 40 bucks, but you save hundreds of dollars … well, you get the math.
3. Will my insurance agent call and say, “I can get you a better deal”?
Perhaps, but don’t rely on it. Most Massachusetts drivers buy insurance through an agent, and that agent may only work with a handful of companies. So, ask which companies the agent represents. Then call the others approved to sell in the state. Compare the rates. Then call your agent with the results. (For a complete list of companies, check out www.mass.gov/doi.)
4. Will I have to change companies?
If you handle it wisely, staying put may be your best bet. Deirdre Cummings from MASSPIRG spent days shopping insurance companies. It turned out her existing insurer gave her the best deal, including a loyalty discount for sticking with the company. A Channel 7 photographer told us he was offered a lower quote from another company. When he called his current company, it matched the rate.
5. Are there other discounts available under the new law?
You may save more now if you have airbags, an alarm or anti-theft devices; if you are a senior citizen; or if you don’t rack up a lot of miles. Some companies may still give you discounts if you take public transportation, insure several cars or take a driver training class.
6. Could my premium actually go up?
Some estimate 20 percent of drivers will pay more. Under the new law, your driving record matters less, and insurance bean counters now may review your marital status, age and where you live. So, if you’re a single young renter, you may see your premium go up. A married 40-year-old homeowner? It might go down.
7. What do I do if an insurance company is not treating me fairly?
The Attorney General’s Office is monitoring companies during this transition. To file an inquiry or complaint, or to seek more information, check out www.mass.gov. {EXA}
Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. She is also a best-selling mystery novelist (http://www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience. She has won more than two dozen local, regional and national journalism awards for investigative, consumer, feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.
