Auto Insurance Association Concerned with Massachusetts’ Proposed Regulations

Massachusetts Attorney General Martha CoakleyNew auto insurance regulations have been proposed in Massachusetts by Attorney General Martha Coakley, and the Property Casualty Insurers Association of America has expressed reservations and concerns about them.

The proposed consumer protection regulations for auto insurance in Massachusetts would create more transparency for the state’s residents and allow people to compare automobile insurance quotes and shop for car policies more effectively, Coakley’s office said. The Attorney General also believes deceptive practices will more easily prevented. The proposed regulations are available on the Attorney General’s website.

However, the PCI sees Massachusetts’ proposed regulations a little differently. The insurance organization believes drivers will be deprived of certain benefits and discounts if Coakley’s new managed competition system is approved.

Massachusetts was known for its auto insurance market being one of the least competitive in the country, PCI said. It has recently been introduced to a broader variety of coverage options, and PCI believe the new system will limit consumer’s choices.

However, since the deregulation of Massachusetts’ auto insurance market two years ago, Coakley believes positive changes have been made and that the proposed regulations will only increase benefits for the state’s drivers. Prior to the deregulation of Massachusetts auto insurance, the state set the rates for insurers.ADNFCR-3298-ID-19823274-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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