Massachusetts Auto Insurance Council passes-$ 1000 Mark.
The average auto insurance premium in Massachusetts barreled through the $ 1000 barrier yesterday, prompting Attorney General Thomas F. Reilly to declare that the state’s rate-setting system is broken and needs to be replaced with a competitive market.
Insurance Commissioner Julianne M. Bowler authorized a $ 1047 statewide average premium for next year, up 7 percent over the $ 978 rate she unveiled a year ago. The increase will keep Massachusetts premiums among the highest in the nation.
Even though yesterday’s rise was far less than what the state’s 20 auto insurers had sought - Year 1148 $ statewide average premium - it nevertheless preventable Reilly to call for an overhaul of the rate-setting process. Massachusetts is the only state that sets auto insurance rates.
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