The American Insurance Association warned that the Massachusetts Insurance Commissioner’s decision to maintain the “fix-and-establish” rate-setting mechanism is bad news for most Massachusetts drivers.
“The ‘fix-and-establish’ system is simply government price fixing,” stated Paul Moran, AIA vice president, northeast region. “The result is that consumers have few choices among the small number of insurers doing business in the state. Many consumers are paying much higher than needed premiums to subsidize riskier drivers under this system.”
The decision does not allow companies to offer “optional endorsements” for enhanced rental car or towing coverage options. “Even refusing to take a tiny step toward competition through the allowance of ‘optional endorsements’ needlessly limits consumer choice in auto insurance coverage,” Moran continued. “This decision simply maintains the status quo of a very bad system where good drivers are forced to subsidize high-risk drivers.”
Topics Massachusetts
Was this article valuable?
Here are more articles you may enjoy.
Carnival Cruise Passenger Served 14 Shots Awarded $300,000 After Fall Down Stairs 
State Farm Agrees to $15M Settlement for Underpaid Vehicle Claims 
Viewpoint: Japan’s $550B Bet on America—What it Means for the US Insurance Market 
AI Ruling Prompts Warnings From Lawyers: Your Chats Could Be Used Against You 
