Commercial Auto Rates in Massachusetts: Attorney General Martha Coakley Urges Rate Reduction
May 31st, 2011 § Leave a Comment
According to a recent article from Insurance Journal, “Massachusetts Attorney General Martha Coakley claims insurers have overcharged commercial auto customers by $1 billion over the last seven years and has asked the state’s insurance commissioner to slash premiums for the coverage.”
Here are some important facts from the article:
- Coakley said her office arrived at the $1 billion figure after reviewing information from the National Association of Insurance Commissioners (NAIC) and Automobile Insurers Bureau (AIB).
- Coakley claims businesses overpaid by $150 million per year between 2004 and 2010 – a total overcharge of about $1 billion dollars.
- During the same period, 2004-2010, Coakley said rates were high by at least 21.6 percent.
Coakley also said, in her letter to Commissioner Joseph Murphy, “These inflated commercial auto premiums impact virtually every industry in Massachusetts – from manufacturing, trucking, and construction to sales and services. The added costs limit the ability of businesses to invest in Massachusetts and cost Massachusetts residents thousands of jobs. The problem is especially acute for small businesses, who ability to create jobs is impaired by excessive rates.”
One important fact, as mentioned in the article is that Massachusetts law allows the commissioner to reduce commercial automobile insurance premiums that are deemed excessive.
This is very important to the state of Massachusetts, as mentioned by Coakley, since these high premiums effect every industry in the state.
For more information regarding Business Insurance Worcester MA and Auto Insurance Worcester MA, contact us today!
