Massachusetts drivers are now benefiting from the kind of insurance regulatory reform USAA has supported for many years. USAA members will start seeing auto insurance rate reductions — an average of 15 percent — as the first wave of auto insurance policies begins to renew this month. The reductions are the direct result of efforts by the Massachusetts Division of Insurance to improve the state’s regulatory environment. The regulatory change went into effect last year to allow private insurers to set their own rates for the first time in nearly 30 years.
“This rate reduction is an example of the tangible benefits of a truly competitive insurance market,” said John Friedman, USAA assistant vice president for government relations. “We applaud Governor Patrick and Commissioner Burnes for allowing USAA to implement these rate reductions by modernizing a stale insurance regulatory system. A competitive insurance market offers the most choice for consumers by attracting new insurers to the state. We are excited about the opportunity to reduce rates and to operate in a thriving open market that provides real benefits to Massachusetts drivers.”
The new system goes into effect April 1, 2008. USAA members with policies renewing in April are already starting to receive their renewal statements with the new lower rates. Members will see the effects of the rate reductions throughout the year as their annual policies renew.
USAA has long-advocated for the state to modernize its regulatory system. Until now, all insurers were required to charge the same rates, which were set by the commissioner, creating a totally non-competitive market. “The best part about the new competitive system is that our members — U.S. military members and their families — will benefit from the savings that USAA generates through efficient operations and decreasing claims costs,” said Friedman.
USAA, a diversified financial services company, is the leading provider of financial planning, insurance, investments, and banking products to members of the U.S. military and their families. Named as BusinessWeek’s top Customer Service Champs in 2007 and 2008, USAA provides convenient and accessible financial products to its 6.4 million members. For more information about USAA, or to learn more about membership, visit usaa.com.