Massachusetts Auto Insurance

Although consumer advocacy groups say many good drivers will receive auto insurance rate increases and may bad drivers will receive large rate decreases some say the new Massachusetts Auto Insurance policy will be beneficial to all.

Massachusetts' Division of Insurance renewal auto insurance system, called managed competition, will be profitable for most of the drivers.

For the first time in 30 years, auto insurance companies can now set their own rates to good drivers, offer more product choices and better services. The new measure, which went into effect on April 1, will save at least 10% for good drivers on their 2008 auto insurance premiums and rates.

Consumers may be able to take advantage of this new policy even before their current auto insurance policy expires. All consumers are allowed to cancel or change insurance companies any time during the term of their policies.

Before making a change, however, the state is instructing Massachusetts drivers to contact their insurance agent or insurance company because insurance companies sometimes charge a fee, known as a "short rate value," for early cancellation.