The Massachusetts State Rating Bureau announced it has filed a recommendation for a statewide 2 percent increase for private passenger auto insurance rates in 2003, denying the 7 percent increase requested by auto insurers.
According to State Ratings Bureau Director Wayne Perkins, a review of data by the Division of Insurance’s statistical unit found the 7 percent increase too high. By approving only a 2 percent hike, policyholders will save about $160 million next year, according to Perkins.
While acknowledging that loss experience for private passenger auto has worsened slightly from 2000 to 2001 and that Massachusetts continues to have one of the highest accident frequencies in the nation, Perkins said the insurers are still overstating some projections.
By law, Insurance Commissioner Julie M. Bowler is to issue a decision in the case by December 15, 2002.