Car Insurance Costs in MA

The experience for the first full year of the act, that of 1927, now available, demonstrates the inadequacy of the first rates arbitrarily established. They resulted in a loss to the companies of over one and a half million dollars in 1927. There will be an even greater loss in 1928, as the same rates were continued for a second year. The heaviest losses came from territory one, the Boston district. The Commissioner of Insurance has now issued new rates for next year which are a considerable increase over the rates of 1927 for the Boston district. A great outcry has gone up that the increase is exorbitant. Compare auto insurance rates in MA!

The new rates are a considerable increase over the first compulsory rates, but not so very much above the rates originally charged by the companies in this district, in fact about an 18 per cent increase, considering all three classes of cars in territory one. The small car which paid $41 in 1926 will now pay $55 (including extra territorial) ; the medium car which paid $50 in 1926 will now pay $55 and the larger car, which paid $61, will pay $72. In view of the fact that the companies are now compelled to take all the bad risks, which comprised a large part of the uninsured under the non-compulsory conditions, the difference in rates for 1929 under the compulsory law, as compared with the rates made by the companies themselves for selected risks in 1926, is easily justifiable and most reasonable.

The remaining territories of the state show even less difference in rates for 1929 as compared with the rates formerly charged by the companies before the compulsory law went into effect, averaging perhaps some five or six dollars for private passenger cars.

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