Massachussets is currently the only state to offer a one-rate automotive insurance system. Over the years well connected insurance companies have leveraged their positions and smiled as they gleefully watched the rates go up.
Attorney General Tom Reilly called for an 18% reduction in state auto insurance rates, and Governor Romney wants to do away entirely with the one-rate system. WCVB reports:
A group headed by the auto industry has produced commercials blasting [Governor] Romney's plan, but drivers in Massachusetts pay the fourth-highest car insurance rates in the country and Romney says he wants to change that. The state sets one rate for all companies -- the only state to have a one-rate system.
Romney's plan would establish a competitive system, mandating a 5 percent reduction for clean drivers the first year and setting a 15 percent maximum hike for bad drivers. Drivers would have three years instead of six to wipe their records clean of violations, and there would be no automatic penalty for teenagers with clean records. If drivers receive five surcharges in three years they must undergo training or lose their licenses for 30 days.
Read more: Battle Over Car Insurance Rate System To Start
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