Online Auto Insurance News

Massachusetts Gov. Deval Patrick signed a law earlier this month that will allow agents to maintain ownership of their clients’ expiring auto insurance policies.

The change means that if a policyholder who purchased coverage through an assigned-risk plan goes on to later purchase coverage that has been offered voluntarily by the same carrier, then the original producer of record — or agent — will by default continue to serve that policyholder.

The legislation was coupled with another law that puts an end to the state’s two-year exemption from the residual market for auto insurance companies that are new to the state. That law will apply to insurers entering the Bay State after January 2011.

These are just a few of several changes that have taken place since Massachusetts car insurance deregulation took effect. Since deregulation in 2008, 11 auto insurance companies have begun offering plans in the state.