Post by Logan on Feb 25, 2016 6:06:15 GMT -6
Thousands of drivers in low-income and minority communities in Massachusetts could face higher auto insurance costs if a long-running incentive program for insurance companies is scaled back, the Massachusetts attorney general’s office and some insurers warn.
The incentive program is designed to encourage insurance companies to offer coverage in underserved communities such as Chelsea, Lowell, East Boston, Springfield, and Brockton, as well as to riskier drivers. But the industry group that manages the high-risk insurance pool is now calling for that program to be reduced by more than 20 percent statewide, arguing that it is not as necessary in a competitive market.
That move could push more drivers into the high-risk pool, which is the insurer of last resort for those who can’t get commercial coverage, according to the office of Attorney General Maura Healey. The change could affect far more than bad drivers; good drivers who live in poor and minority communities that insurers rate as risky might also be pushed into the high-risk pool, meaning fewer choices, higher premiums, and more fees.
“These credits play an important role in providing low-income residents with greater access to auto insurance products,” said Jillian Fennimore, a spokeswoman for Healey. “They also incentivize insurers to do business in diverse communities across Massachusetts.”
Read more: www.bostonglobe.com/business/2016/02/24/state-looks-reducing-incentives-for-insurance-companies-serve-low-income-communities/ZFpEjA3nnIdRXBStACKtlL/story.html
The incentive program is designed to encourage insurance companies to offer coverage in underserved communities such as Chelsea, Lowell, East Boston, Springfield, and Brockton, as well as to riskier drivers. But the industry group that manages the high-risk insurance pool is now calling for that program to be reduced by more than 20 percent statewide, arguing that it is not as necessary in a competitive market.
That move could push more drivers into the high-risk pool, which is the insurer of last resort for those who can’t get commercial coverage, according to the office of Attorney General Maura Healey. The change could affect far more than bad drivers; good drivers who live in poor and minority communities that insurers rate as risky might also be pushed into the high-risk pool, meaning fewer choices, higher premiums, and more fees.
“These credits play an important role in providing low-income residents with greater access to auto insurance products,” said Jillian Fennimore, a spokeswoman for Healey. “They also incentivize insurers to do business in diverse communities across Massachusetts.”
Read more: www.bostonglobe.com/business/2016/02/24/state-looks-reducing-incentives-for-insurance-companies-serve-low-income-communities/ZFpEjA3nnIdRXBStACKtlL/story.html