What’s New in Massachusetts Auto?
Managed Competition
What’s Managed Competition and how does it affect me?
Beginning in April 2008, insurance companies will be able to set their own auto insurance rates within certain guidelines set by the Division of Insurance creating what is called, “Managed Competition”.
Insurance companies are now filing their individual rates and programs with the Division of Insurance, and the media is starting to report some details. Keep in mind however, that the media won’t be giving you all the details, since all the details have not been clearly defined yet.
What to expect from O’Connor & Co. Insurance?
We continually strive to be your trusted advisor and provide you with the guidance and solutions necessary to protect your “whole” life. Competitive auto insurance will not cause us to change that goal. During this transition in the Massachusetts Insurance industry there will be a lot of questions. From us you can expect:
• Information and honest answers
• Sound guidance and advice from a trusted source
• Competitive solutions because we work with 7 different auto insurance companies
• A focus on getting the best combination of coverage, price, and service
• One stop shopping meaning we do all the work for you
• Peace of mind knowing that we’ll support you if you have a claim
Be sure to keep focused on the right combination of price and protection!
When listening to the media, please keep in mind that they can make broad generalizations about potential savings while looking at a very narrow situation. All insurance companies tell us that auto insurance is going to have many more options, so such generalizations can set false expectations. Keep in mind that an average taken from a group is just a spread and won’t necessarily benefit the whole group in a positive way.
What is next?
At this point, we are learning like everyone else what the insurance companies have filed and are working to organize and understand this information. Because the insurance companies all have the ability to file amended rates within the next couple of weeks, things could still change. As the implementation date of April 1, 2008 approaches, we are working with all our carriers to determine how these changes will impact you. In some instances, we may request additional information from you to assist us in helping you with your specific needs. We’ll be in touch as this process is further clarified.
Don’t worry…you won’t have to go it alone.
We’re here to assist you and help make sense out of the confusion that many options can create. Our trusted associates will take care of you. Please let us know if we can be of any assistance during this time of change.
10 Things you should know about insurance and investments
(but probably don’t).
1. Your Homeowners Policy only provides for $2500 in coverage for business property in your home. If you have a home office you may need to increase coverage to fully protect items like, your computer, office furniture, equipment, filing cabinets, etc.
2. If a tree falls on your vehicle, the damage is not covered under your Homeowners Policy. You are only covered if you carry comprehensive coverage on your Auto policy.
3. Without a Renters Policy, the contents of your apartment are not covered if they’re stolen or lost in a fire (or other claim). Your landlord may carry an insurance policy but that only covers his interest in the property, and your personal property is not his responsibility.
4. Your Homeowners Policy alone does not cover flood damage. If houses in your neighborhood have flooded in the past, you should speak to us about getting a Flood Insurance Policy.
5. You can lower your payments on most policies by simply raising your deductible. But, a higher deductible does mean you’ll pay more “out of pocket” if you have a claim.
6. On average, Social Security and a traditional pension provide only 45% of the retirement income needed by most people. You can help bridge the gap by contributing to an IRA.
7. If you drive in a carpool, you might need to increase the medical coverage on your auto policy to fully protect your passengers.
8. An employee who is injured while driving a business vehicle is covered under Workers’ Compensation, but not under the Commercial Auto Policy.
9. 3 out of 5 people over the age of 65 require nursing home assistance. A long term care policy can help protect you from the financial burden of nursing home costs.
10. Your company could be liable if an employee has an accident while operating their own vehicle for work purposes.
