Boston Globe's Todd Wallack on Auto Insurance Rates in MA

Our next guest. Writes articles June -- gets my blood pressure rise is my name's Todd wallet from the Boston Globe. And all I know is whenever I read his articles I have to take an aspirin and and and a -- Cabinet he's he's just giving you the real deal stuff that's on him he's just got that the real deal of information for -- loves to do his research and he's done some great research on auto insurance rates here in Massachusetts before we go to Todd though we got to get better opening bell numbers you -- -- I I need some good news our take it along we can go a long month I'm not a happy guy what do we. Now well OK everything -- it actually doesn't look that great right now Barry because the Dow like I seeping down 33. And I didn't want to let you. All right it's creeping as we speak it's moving three briskly the Dow had its now creeping up only ten points right so went down and now it's moving as we speak NASDAQ up four S&P up one tenured US at one point 776 gold. Is standing up 1660. And oil's trading up 73 cents to 9354. Days ago. I'm not gonna let you back on until the markets that's it that's it there's just it's not tiny bit. You're done it right away that was these -- stock market Belmont the guest bill. Yet yet you knows the S stock market all there already texting and that that was not the guest though. Pay our guest Todd walked Todd nice job yesterday on your article about auto insurance rates here in Massachusetts welcome to the show. Banks could be your story about the blood pressure. The half nine and knowing he's still -- just -- just the the messenger right. Exactly I might -- At -- just reporting on on. What do we looked -- for auto insurance increased rates here in -- Source start checking around and unfortunately it looks like. -- all major auto insurance companies. Of raising rates and raising rates sometimes multiple times over the past year now. The media is of over 4% last year so for a little over 4% this year that it -- the law. And these increases keep compounding. The attorney general's office figured out that. Travelers insurance for instance and increased rates for more than 30% since the beginning of 2000. Why -- rates going up what's the justification for the premium increases among auto insurers and man's. Well it it's interesting there are few things going on one is that. Oh a lot of new companies actually did come in in the market you four years ago in the states. Ratcheted back its rules and said hey we're gonna try something new we're gonna let companies set their -- rates for the most part. In hand. That encourage a lot of companies like Geico and progressive. And all states to come into the state the first time after avoiding it for twenty years. Exactly so that's a big changes at least thirteen or fourteen companies have come into the market the last four years and when it first happened. A lot of the new entrants came in with really low rates to get new customers in a lot of existing trust companies were worried about losing our customers drop their rates. Really significantly. It and now things are starting to settle down on the companies are saying okay we. We need to make money. We actually be higher premiums to Paper also claims. I have at the same time it's very -- Kirk also keep -- going out. Last year was really bad year stored there and a lot of trees came down with Halloween storm and they fell on cars and cost a lot of damage the full variety of reasons. -- But most major companies are raising rates though the amount varies -- But tidy and guess here's what I don't understand New Hampshire I think has a population of about a million people we have a population I think of seven million Massachusetts. They have more auto insurance options in New Hampshire than we have here in mass like that I know they loosened it up a few years ago. But why didn't they loosen it up enough to bring in instead of you know fourteen companies bring in a 114 did any of the -- of the attorney general address that with you or did the any of the legislature let legislators addressed that with you. Well I've talked at -- -- some of the companies and executives there. Part of what may be going on is is some companies so that stayed out of markets for years awaiting to see how things in. Is Massachusetts -- experimenting. With this. Deregulation off in its competition -- -- and come back and so rates began how horrific going to be. How much money in terms companies are coming into the state and they. So one of the the biggest actually companies cross country. In auto insurance state farm has continued to stay out of the market waiting to see how things shake out also. -- economies -- so lot of companies are reluctant to make big investments right now spending money on marketing and everything else. Yet they just -- they don't wanna command because they don't trust us and they're worried that Martha might say well we're not gonna let you put that if she can. Did she have the authority to limit rate increases says she cannot put her nose under the tent and and get involved in what companies are are charging for premiums. Or her job is to act as the advocate for consumers with a -- rates are seeking it separates but overall system. Have a lot of clout in terms can lobby of the division of insurance. To. I'll push back on rates and they have been raising concerns about how about some of the practices as the men raising concerns about. Rate increases and pushing the division of insurance to call war hearings. And things start to nine rate increases so big they can't demand that they can't -- but they can they do have a lot of them. Right now -- June my co host has a complaint about the way insurance premiums are calculated and June you wanna do that it did that voice your complaint to Todd Walker I don't know they don't do any good bit -- I feel that. I was reading an I heard that people that you know have the money if you will because they've got all these vehicles and I've got a big home an incredible media. Vacation home. And age by there insurance in this one lump sum and everything want to instantly get a huge discount. And it's on the back of us poor people that are driving around in you know all of beat -- jalopy. Just trying to -- monthly insurance bills. -- -- crying -- crying baby. We have to take it if you will. What do you think come -- work harder and be rich guy -- -- Well well what are our things we can all do when they're shopping around I mean I think. From what I've heard a lot of people. Haven't bothered to look around because -- so used to the old system in Massachusetts where every every company offered the same rates and the minister returned -- over you like to joke that conflict. Award in the models to be wary of any color -- was black. To people more used to shop around now he can and now he might really get a better deal and ask about discounts. One big discount is a lot of companies will be revealed -- if you package your home in terms with your -- don't -- -- you -- to be rich even if your router. He probably have routers have to turn the passage with his future. You can also figure out is do you are you -- in some ways if you have -- drive and an old jalopy that. Twenty years old maybe you don't need collision and comprehensive bond maybe and maybe it's just cheaper to stomach the cost of you have to replace that. Maybe sort of toward bigger deductibles that you have an emergency fund. So some companies offer discounts of based on where you went to college or certain other groups so it's worth asking your agent -- -- companies directly and asking what that the discounts off. She could've should've gone to a better college to and that's why you're paying more for your -- it all goes back to that right -- it odd to me ten years to pay out these student loans. As the college ball -- Todd thanks for your arrive for your time he did a great job in the article keep up the good work. Thank you hope will have better news later yeah you do and I you do to follow up story. Are out I'm always looking you have insurance almost looking for for stories -- all right well thanks again appreciate your time Todd walked from the Boston Globe joining us there.