21st Century Auto Insurance - 21 Century Car Insurance QuotE

Date: Jan 17, 2005
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Amica Mutual Insurance Co. said Friday it is lowering what it will charge Bay State drivers in 2005 because of Romney administration efforts to reform the state auto insurance system.

Amica, of Lincoln, R.I., said it wants to give a 5 percent discount to the drivers with the best safety records and an additional 5 percent off for those same drivers with multiple-car policies.

The state Division of Insurance lowered statewide average rates by 1.69 percent for 2005. As a result, eligible drivers would save up to 10 percent off the state set rates. A two car household with an average premium of $2,000 could realize a savings of approximately $200 on annual premiums.

In November, the Romney administration said it would phase in a plan to change the way auto insurers share the risk of bad drivers' policies. Under the plan, risky policies will be assigned randomly between companies rather than through the broker called exclusive representative producers. It is believed to be a first step toward competitive rate setting. Massachusetts has not allowed companies to set their own rates since 1977.

Thomas Taylor, Amica's president and CEO, said that the decision to discount rates beyond those set by the insurance commissioner last month was due to moves by the Romney administration.

"Commissioner (Julianne) Bowler has demonstrated that she is serious about fixing the anti-competitive automobile insurance system that has existed for years within the Massachusetts marketplace," said Taylor in a statement. "We are in turn incorporating her work in bringing positive change to consumers, and our 2005 deviation filings reflect the anticipated savings that will come with the administration's willingness to see through the reform effort."





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