Following a rate case against Occidental Fire and Casualty Insurance Co. of North Carolina, a company new to the auto insurance market in Massachusetts, filed by Attorney General Martha Coakley’s office, the company has made significant changes to the rates it charges Massachusetts drivers.
After Coakley’s office triggered a rate case against Occidental March 5, the company agreed to lower its base rates by approximately 12 percent for property damage coverages, 30 percent for Personal Injury Protection (PIP) coverages, and 25 percent for comprehensive coverages. The company also eliminated a 35-percent surcharge in the new filing.
In the company’s original request, filed Feb. 13, Occidental sought to charge drivers based on rates that other companies charge "high risk" drivers, as well as a 35-percent surcharge for any driver who held a foreign driver’s license or license from Puerto Rico.
Occidental began writing Massachusetts policies April 1, and intends to sell its policies in those areas where other insurers are declining business, such as inner city areas.
"We are pleased with the action that Occidental has taken," said Coakley. "Because Occidental is providing coverage in areas where insurance choices may be limited, it is important that consumers in those areas are protected from unduly excessive rates. Our office will continue in our role as consumer advocate to ensure that filings are fair and that rates are justified and not excessive."
