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Breaking Legal News & Current Events

Massachusetts Businesses Overpay $1Billion for Auto Insurance

Posted on Jun 13, 2011

Massachusetts Attorney General, Martha Coakley, recently released a report following a review of the National Association of Insurance Commissioners (NAIC) and Automobile Insurers Bureau (AIB) stating that, since 2004, business owners have overpaid by $1 Billion for commercial auto-insurance. The statement followed a review by the Attorney General's office in which she responded with:

“These inflated commercial auto premiums impact virtually every industry in Massachusetts – from manufacturing, trucking, and construction to sales and services. The added costs limit the ability of businesses to invest in Massachusetts and cost Massachusetts residents thousands of jobs. The problem is especially acute for small businesses, who ability to create jobs is impaired by excessive rates.”

The report also narrowed down the dramatic sum to a yearly commercial auto-insurance overcharge of nearly $150 million, dating back to 2004, in which rates were high by at least 21.6%.

Phillips & Garcia Law offers an extremely helpful Free Book on Auto Insurance which can help your business choose the correct and financially reasonable plan.

For more information about auto insurance in Massachusetts check out our video below which asks an important question for any Massachusetts resident.