Who of us doesn’t love a bargain? Maybe in the New Year one of your resolutions was to save money. You may be thinking of shopping around your services like phone, cable, and insurance, to see if you can save some money. Before you sign up with that online insurance company that is giving you a super low price, here is something you should know about insurance quotes. The state of Massachusetts is looking into passing a bill that would require Insurance companies to verify a person’s driving record before accepting a down payment and putting the policy in place to avoid what some are calling “bait and switch” tactics.
The state of Massachusetts has a standard driving record points system. All insurance companies use it while they are calculating your rate. If you call Bright Insurance for a quote one of our sales people will usually take your information and call you back with a quote after running your information through the states record system. Not all companies do the checking before writing the policy though. The Massachusetts Insurance Association (MAIA) says that many direct writer companies (companies who write policies with just their company), will often review the customers driving history after the insurance has been granted, leading to a rate increase.
This is how it works. I am looking for an insurance quote, so I go online to ABCcompany.com and start filling out all my information, my driver’s license, car VIN # etc. The website asks me for my driving history and if I’m a good driver, I don’t really know the answer, but I think I’m a good driver so I say yes, I am a great driver. They quote me a great rate, I accept the policy and cancel my old insurance. A few weeks pass and they finally run my license and find the car accident or speeding ticket, from several years go, that I forgot about. My rate goes up, it almost doubles, and suddenly that great deal doesn’t seem so great anymore.
If you have questions about your policy, or are looking to save money on your policy, contact your customer service representatives and we’ll do our best to help find a solution that meets your needs.