Dear Valued Massachusetts Customer:
I am please to inform you earlier today we completed our filing with the Commonwealth of Massachusetts Division of Insurance (DOI) for private passenger auto rate and product changes that will be effective April 1, 2008 (pending DOI approval), in conjunction with implementation of the commonwealth's competitive auto market.
While the initial filing date for all carriers was November 19, 2007, we decided to hold our communications until today to ensure all of our customers receive the most accurate information about our important changes that will impact your and your customers.
Highlights of our changes, which will apply to our NGM Insurance Company private passenger auto products for both new and renewal business in The Bay State, include:
- 7.6% decrease on existing NGM personal auto policies
- Approximately 40% of our current policyholders will receive a decrease of 15% or more on their NGM auto policy
- Another 30% of our customers will see decreases of up to 15%.
We are also implementing 10 pricing tiers that will provide pricing flexibility and the opportunity to more accurately reflect savings for a wide variety of Massachusetts drivers. Our tiering components will include discounts for:
- Multi-policy
- Coverage package
- Number of drivers
- Vehicle age for liability coverage
- Student away at school
- Farm use
- No lapse in coverage
- Good student
- Safe Driver Insurance Plan (SDIP)
In regards to SDIP changes, Class 10 will be broken into seven groups by range of years driving and Classes 17 & 18 will be broken into individual years of driving.
On April 1, we are also going to introduce our new Auto Elite program that provides many features our customer focus groups indicated they wanted for their private passenger auto customers. This includes accident forgiveness, new car replacement coverage and disappearing deductible.
We will continue to monitor all carriers' filing with the DOI and are committed to put our vast experience in competitive auto markets to work for your and your customers. Within the near future, we will provide you with more information about our existing changes and will plan to also meet with you in 2008 to discuss strategies that you help you take advantage of these opportunities.
As always, thank for your continued business with The Main Street America Group.
Sincerely,
Steven T. Berry, New England Region President
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