Breaking down the facts on Auto Insurance
Posted by Ryan in Competition on March 9th, 2010
Auto insurance can be complicated but it is very important that you know all the details. A recent article published by MSN money breaks down the basics of auto insurance.
- If you have good credit, you’ll pay less
- Your car model affects your premium
- Pay in full to avoid installment fees
- Personal property within your vehicle is not covered
- Bad driving leads to higher rates
- If you lend your car out and something happens, you’ll be the one to pay
- The value of your “totaled” car may surprise you
- Check into “diminished value”
- Taxes can still be owed on a replacement car
- Wait to add your teenager to your policy until he or she is licensed
- Officially cancel your insurance policy when you switch insurers
When shopping around make sure to keep these points in mind because they may end up saving you money annually. MassDrive would like to help you in your efforts! MassDrive is excited about the competition that deregulation has created and we would like to pass on the savings to you. Our licensed professionals can compare policies from multiple carriers and give you a better understanding of the benefits of each plan!
Automated Toll Booths Anyone?
Posted by Cassie in Consumer Advocacy on March 5th, 2010
Highway officials may start testing a new form of electronic tolling in the next couple months. Governor Patrick Deval announced in his monthly radio station chat test runs of the proposed system may appear at the Massachusetts Turnpike at the Route 128 exchange. With the new system drivers would no longer have to pull up to toll booths, rather they would drive under a scanner that would read transponders like those currently utilized by FastLane drivers. However the electronic tolling would also have the ability to read a license plate and send a bill or charge a driver’s account.
Governor Patrick Deval believes the new system will make toll-paying easier and safer for drivers as they would no longer need to fumble for change. Although the FastLane transponders are given out free and payment lanes are available, some drivers still prefer to pull up to a booth. A cash lane would need to be kept for those who do not have transponders, such as out of state drivers or new vehicles. Deval said this past Wednesday he would like to have the new system trials up and running sooner then later. When asked to elaborate on a time period Deval stated he hoped to see testing in the next few months.
Senate Reviews Texting & Elderly Driving Bill
Posted by Cassie in Legislation on March 3rd, 2010
The Massachusetts Senate voted yesterday to ban texting while driving and to require elderly drivers to undergo regular cognitive and physical screenings every three years. The controversial bill finally made its way through the Senate with a 24 – 10 vote. The bill awaits a compromise between the House and Senate differences and lastly an approval by Governor Patrick Deval before it can be enforced by law. If this bill passes to law Massachusetts will join 19 other states that ban texting while behind the wheel. At any given time during the day in 2008 more than 800,000 drivers were using hand-held devices in their cars according to the United States Department of Transportation distracted driving website: distraction.gov.
The Senate rejected a portion of the House bill that would ban all cell phone use except by a hands-free device. The initial bill made proposed to make text messaging while driving a secondary offense, meaning an officer may only issue a citation if the driver was pulled over for a different violation than texting. The Senate rejected this as well and upgraded texting while driving to a primary offense.
The Senate’s revisions to the bill have created the following measures:
- Require drivers over 75 to pass an examination of the motorist’s cognitive and physical capabilities.
- Elderly drivers who fail the cognitive or physical examination may protest the RMV’s decision by taking a driving test demonstrating they hold the necessary driving skills for continued licensing.
- Civil immunity would be granted to physicians and officers who report, or fail to report, an individual who demonstrated unsafe and improper use of a cell phone or is not physically capable of driving.
- When a violation of the texting law has been reported to the RMV the driver’s license will be suspended.
- Drivers who attain 3 surchargeable incidents in a 2 year time frame must either take a driver’s training course or face a suspended license. Current laws require this measure after 5 surchargeable incidents in a 3 year period.
- Prohibits the use of cell phones for talking or texting for public transit operators.
The bills from both congressional bodies have been sent to a joint Senate and House committee to conjure a compromised version of the proposed measures. Keep an eye on the news for this piece of legislature, it is bound to affect every Massachusetts driver.
Five Dollar RMV Fee Rescinded!
Posted by Cassie in Legislation on March 2nd, 2010
Monday a new five dollar fee was put into effect for drivers who spoke with a Massachusetts RMV representative over the phone or at a branch looking to renew a license, a registration or request a duplicate license. Many drivers saw this registry fee as a “back door” tax. The new charge came as an unpleasant surprise to both drivers and politicians. The measure was meant to encourage the use of the online RMV system to complete transactions rather than visiting a branch in an effort to decrease operation costs.
Due to much outrage and distaste by the public and lawmakers alike, the five dollar fee has been removed. The Registrar stated in its rescinding publication it understands the government’s concern in that the additional five dollar fee would bring an unduly burden on Massachusetts drivers and in the future will not charge drivers for speaking with a representative on the phone or in a branch. The five dollar charge has been rescinded by the RMV; those who paid the fee yesterday should receive a refund via mail within the next two weeks.
The RMV’s motivation behind the rescinded fee however should not be forgotten; online services not only save the RMV money, but drivers time as well. Over the last year the Massachusetts RMV added eight new online services to better serve drivers. You can check them out at: www.mass.gov/rmv. Before going into a branch MassDOT recommends residents to first check the online website and if possible to complete transactions online, saving themselves the hassle and time of going into a branch.
Inspection fees may rise
Posted by Ryan in Legislation on March 2nd, 2010
A 20 percent increase in the cost of Massachusetts automobile inspection fees may be coming. The increase is part of a legislation package that is aimed at helping stabilize the finances of cities and towns all over the state. Extra revenue will be dedicated to local police training.
The increase would cause the inspection charge for a passenger car to rise $6.
State Republican Paul Donato realeased a statement on the matter,
“It was something the commission felt would have a better impace on the communities by allowing them to have the opportunity to have police training.”
Under the new bill, municipalities would be able to e-billing programs and offer employee benefits already available to state workers, such as health care spending accounts and larger optional life insurance maximums.
An interesting new approach the bill proposes is cooperative purchasing agreements and mutual aid agreements with other cities and towns to save money on services, equipment and staffing.
Whether the bill will pass is unknown but it is under review by the House Ways and Means Committee.
Right to Repair is Stuck in a Rut
Posted by Cassie in Legislation on February 26th, 2010
The Right to Repair Bill seems to be stalled in congress as it waits yet another day to be considered by the Massachusetts Senate. The legislature was first introduced to Massachusetts in 2006 proposing to allow independent repair shops unlimited access to major manufacturer’s service techniques, repair codes, and tools. Bills similar to this one have been proposed in eight other states since 2001 however never enacted.
Proponents of the Right To Repair Coalition include consumers along with the auto parts and repair industry. In fact the Right to Repair legislation is funded and lobbied by some of the largest aftermarket auto part retailers. Those supporting the bill argue the computers vehicles rely on are becoming increasingly advanced and making repairs more of a nightmare for fix-it-yourselfers and independent repair shops.They argue its time repair shops and repair part manufacturers should have explicit access to the repair codes, techniques, and tools necessary to repair vehicles. This measure would drive down consumer’s repair costs and grant a greater convenience and choice in choosing repair shops. Supporters of the bill hopes the measure will pass giving the Federal Trade Commission authorization to enforce regulations and encourage competition.
Opposers of the bill believe it would force manufacturers to release confidential trade secrets and other information that would give competitors an unfair advantage. Others believe the Bill’s goal is gain access to automakers information to reproduce parts outsourcing at a lower cost overseas. Those opposed to the bill reference the National Automotive Service Task Force that was formed in 2000 to grant independent repair shops the same access to services and techniques franchised dealers had. The National Automotive Service Task Force (NASTF) created a website: www.nastf to address any questions independent shops have while repairing a vehicle. The largest organization representing independent repair shops, New England Service Station and Auto Repair Association, has told congress this piece of legislature is unnecessary as service information and repair codes are already available.
Here’s the big question… who is right? If you have an opinion on this piece of legislation contact your local congress member via the contact information at link: www.mass.gov/legis/.
Scattered Power Outages & Unruly Road Conditions Call for Cautious Driving
Posted by Cassie in Consumer Advocacy on February 24th, 2010
Heavy snow fell last night and this morning weighing down tree branches, roofs, and power lines. The snowstorm has dropped between four and twelve inches of snow over central Massachusetts as temperatures daunt around 30 degrees for the day. The recent snow storm has caught the blame for a number of accidents as morning commuters trudged through heaps of snow. Including a particularly dangerous one on Interstate 90 just past the Route 84 exit. A truck involved in the accident sustained a ruptured fuel tank spilling fuel over the road. The already challenging road conditions combined with this accident created a nine-mile back up.
Power outages also plagued Massachusetts as the snow fall cut power from a number households in many towns including Fitchburg, Lunenburg, Ashby, Townsend, Southbridge. Approximately 4,500 National Grid customers as well as 1,500 Unitil customers lost power for at least a portion of the day today. Support crews have been dispatched and expect to have power available soon if it has not been already. Power outages and slippery roads are a dangerous combination. Drivers should do their best be on the roads as little as possible.
Road conditions varied throughout the state from sleet and slush to icy and snowy roads cautious driving is key. In many areas as the snow turns to sleet and rain it is imperative drivers are aware as the night temperature drops icy roads will become increasingly dangerous. State police have reduced the speed limit on the Massachusetts Turnpike and caution drivers to reduce their speeds where ice and snow have covered the roads.
Bundle up and drive safely if you must!
Older Drivers Get to Know Their Limits
Posted by Cassie in Consumer Advocacy on February 22nd, 2010
As the baby boomers age the number of drivers 65 years or older rise on the road. Although new drivers joining the 65 + grouping drive further each year than generations before them, from 1997 – 2006 elderly drivers have experienced fewer fatal accidents than the same age groups in the past.
Although the causes for this decline are not clear the Insurance Institute for Highway Safety compiled statistics and believes it may be due in part to a greater self awareness. According to the Institute drivers are limiting their own driving more often as they age and develop physical or cognitive conditions. Some impairments that come with age include a greater limitation in vision, hearing, and flexibility as well as medication side effects.
Many elderly drivers are pushed by their friends and family to hand over their keys; which may also contribute to the decrease in elderly accidents. In these cases the older driver will need to ask family members for rides or depend upon public transit. This may be difficult when someone needs to get to and from church, the pharmacy, grocery shopping, and other places throughout the week.
Older drivers, all drivers for that matter, may attend safety driving courses to increase road safety and awareness. Although some drivers need to be taken off the road, these classes may instill the extra caution and safety tips elderly drivers need to be safe on the road. Driver-safety classes are offered by AARP, AAA, and other organizations touching on defensive driving, new traffic laws, and safety tips. A new bill passed through the Massachusetts House of Representatives last week and is currently pending in the Massachusetts Senate that would require elderly drivers to take a vision exam every few years to renew their license. Measures such as these will increase everyone’s safety on the road.
Progressive Falls Behind
Posted by Cassie in Competition on February 19th, 2010
Flo, the popular Progressive personality, will bring higher premiums with her quirky commercials and price zapping gun this quarter. Progressive entered the Massachusetts auto insurance market two years ago with rates attractively lower than most competitors. The lower premiums however have not endured as Progressive raises their rates for a fourth time since their debut in 2008. The new price increase of 6.63% will raise prices a grad total of about 16% over the last two years.
Andrew Quigg, a Progressive executive in charge of the company’s Massachusetts business states,”We’re still very competitive… Thousands of consumers still shop around and find us to have the lowest cost for auto insurance.” Even so, Progressive has become less and less attractive to the Massachusetts driver as time continues to provided a history of constantly increasing premiums. If these price increases continue to follow their repetitive pattern, Quigg’s statement is unlikely to remain true for long.
Insurance commissioner Joe Murphy told the Boston Globe he believes the deregulated auto insurance market, “has been wildly successful.” And successful it has been. The Massachusetts Division of Insurance reports drivers saved $270 million in the first year of deregulation. Eleven new insurance carriers have entered the Massachusetts auto insurance market since the new system emerged. Before deregulation insurance rates were set by the government and depended upon the driver’s location and driving record only. The new market allows insurance carriers to offer discounts from holding a AAA membership to owning a home. Deregulation holds great potential savings for drivers state wide.
Some critics of the newly deregulated system find it difficult to compare prices through the plethora of new auto insurance carriers. Adjusting to a new system may difficult for some, however it does not have to be difficult for you. MassDrive Direct Auto Insurance understands you have better things to do with your time than compare auto insurance quotes while understanding it is an important process. Here at MassDrive we quickly gather your basic information and compare auto insurance quotes for you!
No longer will you need to worry about comparing rates, coverages between quotes, or stress about discounts – MassDrive has your back. We compare quotes through various Massachusetts insurance carriers helping you find the best price and saving you time. One carriers may offer discounts another does not, in comparing your information through various carriers we help you get the most bang for your buck. And the best part? The quotes are completely free! Give MassDrive a call, one of our friendly representatives will compare your quotes saving you time and money.
New Insurance Carriers = High Risk Exemption
Posted by Cassie in Legislation on February 18th, 2010
This past Tuesday the Massachusetts Supreme Judicial Court upheld the Massachusetts Division of Insurance’s decision to temporarily excluded new auto insurance companies from covering high risk drivers. The Abrella Mutual Insurance company filed a lawsuit claiming Nonnie Burnes had exceeded her authority as the insurance commissioner while favoring national companies new to the Bay State. Burnes had adjusted the insurance regulations to exempt the new insurers from covering high risk drivers for two years.
Abrealla with the Massachusetts Association of Insurance Agents brought the law suit in 2008 arguing the exemption place Massachusetts insurers at a disadvantage. This legislation would require the Massachusetts insurers to share the cost of high-risk losses based on their state market share allowing the new insurers to escape this burden.
The Massachusetts Supreme Judicial Court upheld Burnes decision deciding although the new companies would not share the cost of high risk drivers they do help fund the administrative costs of the Massachusetts Automobile Insurance Plan that in turn provides the high risk insurance. Burnes had worked during her career as the insurance commissioner towards deregulation in an effort to bring new insurance agencies to Massachusetts giving drivers better competitive prices and more options.
Frank Mancini, president of the Massachusetts Association of Insurance Agents, stated his association was disappointed in the outcome however will not be giving up. The group has already brought two additional bills attempting to keep the ownership of expiring policies with agents.
Before deregulation state regulators set auto insurance rates charging drivers by their location and driving record. The new system allows carriers to grant discounts for everything from being a student with good grades to holding a AAA membership. It has also brought more competition the the state as carriers set their own rates as opposed to following state regulated rates as before. Deregulation has brought eleven new insurance carriers and looks to be a good step forward for the State.
