Why is there no competition amongst Massachusetts auto insurance?
I have to write a term paper about a state, local, or federal issue and I've decided to write about why massachusetts is the only state in the coutry that will now allow any competition amongst auto insurance providers. It's an issue amongst drivers state-wide and Im wondering if anyone knows anything about this obscene policy that might help me put this puzzle together. If anyone has any websites or just general knowledge that may help me, I would appreciate it.
Will the last insurance company in Mass please turn out the lights when they leave? I work at a small auto insurance company and when I want to cut the tension in a meeting, I suggest we sell in Massachusetts; breaks 'em up every time. Even GEICO sells in 49 states, everywhere but Mass.
The Mass insurance commissioner & legislature only allow 1 policy the be sold and sets rates that insurers can charge. Mass drivers have no real incentive to keep a clean driving record and companies have no incentive to find good drivers. The 15 or so auto insurers in the state like the way things work so pay big $$ to the legislature to keep things the way they are. Once in a while someone brings up the 'reform' word and kick it around but nothing ever really changes.
In ten words or less, overregulation of the industry. No competition, no cost controls. Mass has 15 companies competing, Ohio has over 600.
Try insurancejournal.com and search for Mass & auto; there are lots of articles.
