Special Auto Discounts in Massachusetts

Age 65 or Older

A 25% discount for all coverages will be applied to a premium after all other discounts and rating factors if the driver meets the following conditions:

·                    The principal operator is 65 years or older,

·                    There are no Inexperienced Operators (less than 6 years driving experience) on the policy, and

·                    The vehicle is not customarily used for business

Passive Restraint

A 25% discount applied to the premium paid for parts 2, 3, 6 and 12 is available if your automobile is equipped with an air bag or automatic seat belts.

Annual Mileage

A 10% discount applied to the premium paid for Parts 1-8 and Part 12 is available if your verified annual mileage falls between 0-5000 miles. A 5% discount off of the premium paid for Parts 1-8 and Part 12 is available if your verified annual mileage falls between 5001-7500 miles. Please note: antique vehicles are not eligible for this discount.

Anti-Theft

Anti-theft discounts of up to 36% on Part 9 are available for automobiles with various types of qualifying anti-theft devices. Your insurance company or agent can provide you with a list of the qualifying anti-theft devices and the corresponding discounts available.

Multiple Cars

A 5% discount applied to the premium paid for compulsory coverages (Parts 1, 2 and 4) and, if selected, optional coverages (Parts 5, 7, 8 and 9) is available if an individual or married couple own two or more automobiles insured by the same company.

Advanced Driver Training Programs

A 5% discount will be available at some point in 2007 to Inexperienced Operators who complete an Advanced Driver Training Program at a Registry of Motor Vehicles (RMV) approved Advanced Driver Training School. Currently, the RMV is formulating a process for certifying such schools. Drivers should contact the RMV for up-todate information on when such schools and programs will become available.

Public Transit

A 10% public transit discount applied to the premium paid for Parts 4 and 7 (up to a maximum of $75 per eligible vehicle) is available if:

1.                You provide your insurer with evidence of purchase of 11 months of commuter passes from qualified transit systems, and

2.                You do not drive your automobile to work or school more than 10 days or more per month.

Your insurance company or agent can provide you with a list of the qualified transit systems and requirements for proof of eligibility .

Rate Deviations

Some insurance companies have been offering discounts to their existing policyholders by filing requests with the Commissioner of Insurance to "deviate" from the basic insurance rate. These discounts have been offered primarily to the safest drivers. Check with your agent to see if your insurance company has been approved to offer discounts to its safest drivers. If you are eligible for a group and a safe driver discount, you can take advantage of both!

Group Discounts

In recent years, many insurers have been offering discounts to numerous groups to attract new customers. These discounts will decrease your entire insurance premium. In addition, many group plans do not charge interest or require an initial deposit.

Groups can be sponsored by an employer, civic organization, motor club, association, trade union, credit union, etc. You may want to check with agents of several different insurers to learn which groups the insurer has been approved to offer discounts to and the size of the discounts. Any member of an approved group is eligible for the discount.

Group plans are not guaranteed to be renewed or to be renewed at the current discount level. By law, groups may be continued if after two years of operation the group has 35% of its eligible members participating. If, however, after three years a group's loss and expense ratio makes the group unprofitable it cannot renew policies.

The Safe Driver Insurance Plan (SDIP) is a program created by state law that encourages safe driving with lower premiums for drivers who do not cause accidents or commit traffic violations and by ensuring that high-risk drivers pay a greater share of insurance costs. The SDIP premium adjustment is the last step in your premium calculation, after all rating factors and discounts have been applied.

Beginning in 2006

Beginning with policies effective on or after January 1, 2006, the Massachusetts SDIP switched from a “step” to a “point” system. This change made the system of discounts and surcharges easier to understand and comparable to what is in place in other states. More importantly, drivers in Massachusetts now have even greater control over their premium through safe driving.

Your Driving Record Affects Your Rates

If you have at-fault accidents or commit traffic violations, your driving record will accumulate surcharge "points" depending on the nature of the incident. You accumulate surcharge points if you are responsible for an accident or commit a traffic violation.

·                    Accidents - You receive surcharge points if you are more than 50% at-fault for a motor vehicle accident that results in damage to property or bodily injury of more than $500. If you disagree with the determination that you are at fault for an accident, you may appeal the surcharge to the Board of Appeals. For details, please read the appeals section at the bottom of this page.

·                    Traffic Violations - You also receive surcharge points if you are convicted of, or pay a fine for a traffic violation; or are assigned to a drug or alcohol education program. If you disagree with a traffic violation, you must appeal it through the court system. Traffic violations cannot be appealed to the Division of Insurance Board of Appeals or the Merit Rating Board.

Drivers with no at-fault accidents or moving violations will have zero (0) surcharge points. Drivers with at least 5 years of clean driving will receive a considerable discount.

No surcharge points will be assigned to any surchargeable incident in the sixth (oldest) year of the policy experience period.

The schedule of surcharge points is as follows:

Beginning in 2006, at-fault Bodily Injury Liability claims over $500 are now subject to surcharge if there is no Property Damage Liability (PDL) or Collision claim as a result of the incident.

Surcharge Points Cost You Money And Increase Your Premium

Is there much of a difference between point levels? The differentials are established as part of the rate setting process. The more points you have, the higher your premium.  Points can accumulate quickly and each new incident increases the number of points on your record. Each point increases the premium paid for 4 coverages in your policy:  Compulsory Bodily Injury (part 1), Personal Injury Protection (part 2), Damage to Someone Else’s Property (part 4), and Collision (part 7). In 2006, the premium for drivers with less than 6 years of driving experience (Inexperienced Operators) was 7.5% above the base rate on parts 1, 2, 4, and 7 for each surcharge point on their driving record. The premium for drivers with 6 or more years of driving experience (Experienced Operators) was 15% above the base rate on parts 1, 2, 4, and 7 for each surcharge point. Contact your agent to learn the updated figures for 2007.

The SDIP system has built-in discounts to reward drivers with consistently clean driving records. Drivers who have at least 5 years of driving experience and no surchargeable incidents
- or exactly one, non-criminal minor traffic violation that is at least 3 years old - will receive the Excellent Driver Discount. This discount will lower their premium on parts 1,2 4 and 7, in addition to any decrease from the removal of surcharges from the previous policy period. Drivers with 6 years of driving experience and no surchargeable incidents in the last 6 years will receive an even greater discount on parts 1, 2, 4 and 7 - the Excellent Driver Discount Plus.

The exact amount of these discounts changes each year. In 2006, drivers receiving the Excellent Driver Discount saw a 7% decrease on the premiums for parts 1, 2, 4 and 7.  Recipients of the Excellent Driver Discount Plus qualified for a 17% discount on those parts. Contact your agent to learn the updated figures for 2007.

If I Have Surcharge Points, How Can I Lower My Premium?

Even if your driving record contains surcharge points, the system has built-in incentives for improving your driving. If you have no more than 3 surchargeable incidents over the last 5 years, the point value of each of those incidents will go down by 1 when you have 3 years of incident free driving. For many drivers, three years of clean driving could lead to significant reductions in surcharges. Let’s see how:

Both Bill and Jane have the same incidents on their respective driving records - one minor accident and two speeding tickets. However, Jane's last 3 years of driving have been incident free. Since she has no more than 3 total incidents in the last 5 years, she will see her surcharge point total go down from 5 to 3. For a typical experienced Massachusetts driver, the difference between 5 and 3 surcharge points could amount to hundreds of dollars, depending on car model and location. If Bill can keep a clean driving record for the next 3 years, he will see the same decrease in his surcharge points. Let's look at another example:

Both Tom and Mary had the same incidents through 2003 – 2 speeding tickets and one major at-fault accident. The difference is that Tom improved his driving and has had no incidents over the last 3 years. The result is that his surcharge points decreased from 6 to 4 starting in 2007. On the other hand Mary has not made any changes in her driving habits. She has accumulated three additional incidents – 2 minor, non-criminal, traffic violations and a minor at-fault accident. This means that she not only has 7 new surcharge points on her driving record since 2003, but she loses out on the point reduction for her three older incidents. Mary’s insurance bill will be very high again this year. For typical experienced Massachusetts drivers, the difference between 4 and 13 surcharge points could amount to hundreds or even thousands of dollars, depending on car model and location. As long as her driving places other people at risk, she will continue to pay much higher premiums than drivers like Tom and Jane.