The Arbella Insurance Group reported that it has received approval for new private passenger auto rates in Massachusetts that will result in another one percent average drop on top of an earlier 7.7 percent decrease.
The company estimates that this additional reduction will add another $4.5 million to the discounts it has already provided to its customers, saving its customers a total of over $30 million.
Arbella, the third largest auto insurer in Massachusetts, earlier this year lowered rates by an average 7.7 percent following the state’s adoption of managed competition.
The latest rate reduction will be effective on July 1.
“Many Arbella drivers enjoy rate decreases of 25 percent or more over their 2007 rate. We are constantly evaluating market conditions and the new competitive environment and always looking for new ways to save our customers more money on their auto insurance premiums,” said John Donohue, chairman, president and chief executive officer of Arbella.
Arbella said it can trim rates in part because it has decided to no longer use the driving experience of deferred drivers to determine the rates of the main policyholder. A deferred driver is a household member listed as a potential driver on a customer’s policy.
Arbella said it also made refinements to the company’s “Customer Care” package of discounts and incentives that were introduced earlier this year.
Arbella will continue to offer a 20 percent discount for those customers who have both auto and homeowner’s policies with Arbella. They will receive a 20 percent discount off of homeowners and 5 percent off auto policies. The auto discount will include insurance policies for condominiums and rentals as well as for customers whose homes are insured by the residual market, the FAIR plan.
Source: Arbella Insurance Group http://www.arbella.com