Massachusetts Drivers Paid Way Too Much for Car Insurance Last Year
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At the peak of the COVID-19 pandemic there were fewer cars on the road, yet many drivers saw unchanged car insurance premiums. This was especially true in Massachusetts, where drivers paid way too much for insurance in 2020.
According to the Boston Globe, Massachusetts drivers overall paid millions of dollars more than they should have during the pandemic.
Massachusetts insurance companies charged too much during the pandemic.
How much did Massachusetts drivers pay for car insurance?
The Consumer Federation of America and the Center for Economic Justice, two consumer advocacy groups, released an insurance study on August 11. The study reviewed insurance data across all states, but data on Massachusetts were particularly striking. In the study, researchers found that Massachusetts drivers had overpaid for insurance by about $632 million.
Before this, Massachusetts Attorney General Maura Healey also raised the issue of overpayment and estimated a similar amount. It’s considered an overpayment because fewer people filed claims, but drivers didn’t see decreased car insurance rates.
Though there weren’t any government mandates, some insurance providers offered refunds or reduced premiums during the peak of the pandemic. However, these were often small discounts, and the lack of driving meant that people were still overpaying.
Healey said that her office was troubled by the insurance industry’s profits at a time where many families are struggling financially.
How do officials plan to help drivers who overpaid?
The study found that insurance providers paid out exponentially less in claims in 2020 than in previous years. Despite this, insurance companies saw increased profits. This is because drivers still paid standard rates even though there was much less traffic on the roads and fewer claims filed.
In Massachusetts, which was hit particularly hard by overpaying, Healey proposed putting some of the $632 million back in the pockets of drivers. The attorney general’s office calls for a total of $700 million in refunds in the state, or about $150 per policyholder.
Save money on car insurance
The reports on how drivers in Massachusetts overpaid for car insurance are frustrating, but there are ways to help fight back against high rates. One way to do this is through telematics, which keeps track of how often and how safely you drive. In Massachusetts, MAPFRE has recently introduced a telematics program that can save drivers money.
When you have an insurance plan with telematics, you can be rewarded for safe driving habits. If this isn’t enough, though, there are other ways to save money on car insurance. Modern technology provides new resources to help you find cheaper coverage.
Jerry is an app that uses advanced artificial intelligence to compare quotes and save you money. The pandemic may have affected insurance rates, but Jerry helps make sure you’re not overpaying. It only takes 45 seconds to sign up. After answering a few questions about your driving, Jerry will get to work to find you cheap insurance coverage.