Auto Insurance
Massachusetts governor pushes for auto insurance changes.
Governor Mitt Romney yesterday called on the Legislature to scrap the state’s “Soviet-style” auto insurance system and replace it with a hybrid model that would give companies more flexibility in setting rates under oversight from state regulators.
Romney envisions moving toward a system under which companies could largely set their own premiums after a five-year transition period during which they would have greater and greater pricing flexibility.
Currently, state regulators set all auto insurance rates.
Romney said his bill would guarantee the two-thirds of Massachusetts drivers with clean records a 5 percent rate reduction next year, and rates within state-approved ranges the following three years. One-third of drivers could face significant price increases, although their liability coverages would be allowed to rise only 15 percent each year.
The promise of a 5 percent cut, or…
Source : accessmylibrary.com
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