Mass. Governor Wants to Save Constituents Money

It has been stated, 5 years ago, by Deval L. Patrick the governor of the state of Massachusetts that he alongside his administration has one thing in mind, saving the money of the consumers and the residents of the state. He started doing that as he deregulated the infamous and stupidly costly Bay State insurance for cars business. He presented a new idea that was named “controlled competition”. At first, this new approach worked the premium rates of cars insurance decreased by almost 14% in two years, from the year it was implemented in 2007 to 2009. Then, things started to change, as according to the numbers provided by Martha Coakley, the Attorney General, the premium rates started to increase once again. It increased by 18% at Plymouth Rock and Liberty, increased by sixteen percent at Progressive and Commerce and an unbelievable increase of 30 % at Premier/Traveler.

Coakley is also known for representing a lot of clients in cases that are related with insurance. She stated that many of them are pissed because of the sudden increase of rates, and they demand transparency. As the consumers have the right to know the reason behind any increase in the rates. As was stated by an analyst in automotive insurance, Diedre Cummings, who is also the a Legislative Director in Massachusetts, he said that a lot of people voiced their concern when the administration of Deval L. Patrick carried out the deregulation that sooner or later, the rates will eventually increase. They were right, as this is exactly what we saw happen after 2009.

He added that this deregulation has only served the rich clients. This is because the big clients with many assets are always targeted form companies to provide them with insurance packages. These insurance packages include home, boat, car and other types of insurance. So, these rich customers are the ones benefiting for such deregulation.

On the other hand, these benefits are coming at the expense of the poor people who don’t have their own boat or home, and they suffer badly from the increase of such rates. Responding to the allegations of Diedre Cummings, the executives of the insurance business state that it was only normal for the costs and rates for insurance to drop in 2007 and 2008 and increase after 2009. This is due to the fact that that year was a recession year, and few people bought new cars, so, the rates for insurance decreased. After the economy stood back on its feet, the people started to purchase new cars once again, and it was only normal for the rates to increase.