In its 2010 Car Insurance Affordability Index, InsWeb Corp. awarded Massachusetts the top spot in a comparison of the most affordable automobile insurance rates in the United States. The June 16, 2010 report can be viewed here. The good news comes only two years after the reform of the automobile insurance marketplace in Massachusetts conducted by the Patrick-Murray Administration. In April 2008, the Division of Insurance eliminated the fix-and-establish system of automobile insurance replacing it with a managed competition system.
InsWeb stated that Massachusetts’ affordability index was 1.84 percent compared to runner up New Hampshire with a 2.23 affordability index factor. The “affordability index” is an index based on the state’s median automobile insurance rates as part of the median state income. A family that devotes less of its household budget to car insurance is deemed to have a lower “affordability factor.’ The other states rounding out the top five spots were Vermont with 2.39 percent, Minnesota with 2.39 percent and Utah and Nebraska with 2.43 percent respectively.
“Managed competition has proven to be a success for drivers across the Commonwealth, and this report is more evidence that families are saving money on car insurance,” said Joseph G. Murphy, the Commissioner of the Division of Insurance. “We continue to urge drivers to shop around for insurance, knowing that researching options can save even more for good drivers.”
For more information you may view the Governor’s press release on the Office of Consumer Affairs and Business Regulation website here.