Reform of car insurance in Massachusetts over the past two years has actually been good for agents, with 70 percent of drivers in the state now seeking the help of an insurance professional to purchase coverage, about twice the national average.
Although some agents who work on commissions tied to premiums are seeing reduced income as a result of managed competition, most are embracing the idea of saving customers money as an appropriate business tool. That attitude is bringing more business through their doors.
During the first year of managed competition in the state, the Division of Insurance estimated drivers saved an average 8.2 percent. Some eleven companies have joined the market in the state since April 2009, bringing the total from which consumers may choose up to 30, making choice another by-product of the reforms.
State laws prohibit companies from deciding to insure an individual or setting prices for an automotive policy on the basis of factors that could be considered discriminatory. Insurance consumers also have guaranteed access to insurance coverage.
Additionally, polls indicate that drivers are highly satisfied with the new system that guarantees lower rates for good drivers. Massachusetts residents say they no longer feel that they in a position of being forced to subsidize bad behavior.
Reforms in automotive coverage, coupled with the high rate of health insurance coverage in the state (only 4.1 percent of residents lack health insurance), have made Massachusetts one of the most progressive states in American in terms of real, meaningful insurance legislation.