Yes, the rumors you have heard are true. The Massachusetts private passenger auto market is changing beginning April 1, 2008. Companies that sell auto insurance in Massachusetts (there are 19 of them) will be able to offer consumers competitive auto rates through a managed competition system. What does that mean for the consumer? Simple. You may now shop around for auto insurance coverage similar to shopping around for homeowner's coverage. Each company will have a set of rates and a set of discounts available that have been approved by the Division of Insurance. Drivers with good records may see substantial price reductions upon policy renewal. Additionally, consumers can save up to 20% on their homeowner's premium when both their auto and home are insured with the same company.

How does a consumer determine which company and or coverage is best for them? Call your insurance agent. Your insurance agent will take the time to look at all your coverage options and create a package that will allow you the best price but with the best coverage. There are a lot of options available right now and your independent insurance agent is able to look at those options with you. Discounts available include:

• Loyalty Credits for continuous coverage with a specific company
• Account Credits for having both your auto and home insurance with one company or one agent
• Low Mileage Credits for driving under 7500 miles a year
• Anti Theft Credits for having an approved device installed in your car
• Multi Car Credits for having more than one vehicle insured with a company on one policy
• Good Student Credits for young drivers who have B or better average

Companies are also offering new coverages (some for an additional premium and some at no cost). Examples include:

• Trip Interruption Coverage
• New Vehicle Replacement Cost Coverage
• Enhanced Rental Coverage
• Accident Forgiveness
• Disappearing Deductible Options

Your auto policy runs on a 12 month basis. You may have a 2008 policy that has already renewed. Most companies are allowing you to cancel and rewrite your policy effective 4/1/08 without penalty as long as the rewrite is within the company. However, if you choose to rewrite with another carrier and your policy has been in effect for more than 30 days, there is a penalty for canceling it mid term. Sometimes the cost of the penalty may outweigh the savings you would get by rewriting your policy to get new rates. Also, rates for auto insurance will be changing on regular basis. In the past, rates changed once a year. Companies can now change their rates whenever they want as long as they are approved by the Division of Insurance. Several of our carriers have already mentioned that they will be filing new rates this summer. So canceling and rewriting your policy now may not make the most sense.

Once again all the above information can be explained to you by contacting your independent insurance agent. Your agent will be the most knowledgeable regarding all the changes involved with this new managed competitive auto system.