Mass. motorists to receive auto insurance rate cut

From the Boston Globe



Massachusetts drivers will get their biggest auto insurance rate cut in 25 years next year, with a ruling by the state insurance commissioner pushing premiums back below $1,000 for the first time since 2003.



In her decision, Insurance Commissioner Julianne M. Bowler set a statewide average premium of $995, a drop of about $95. She also said residents of Lawrence would receive a slightly larger cut because of their efforts to curb fraud.



Bowler's 8.7 percent reduction was about halfway between the 0.1 percent decrease the auto insurance industry was seeking and the 18 percent cut sought by Attorney General Thomas F. Reilly.



Reilly said Gov. Mitt Romney had the chance to cut the statewide average premium by $200, but instead decided to split the money between drivers and insurers. "The whole thing was a scam," he said.



Romney said Reilly reminded him of a fourth grader who promised his classmates to expand recess to two hours. "It's just not reality," he said.