Car Insurance Rates Climb Back Up Despite Deregulation

After a steep drop in car insurance prices following deregulation in Massachusetts in 2007, rates are climbing back up to levels from before the measure was passed, The Boston Globe reports.

The report said that while allowing companies to set their own prices has brought more insurance providers into the state, the savings consumers saw initially have essentially disappeared.

Advertisement - Continue Reading Below

Auto insurance premiums in the state dropped by about 12 percent between 2007 and 2009 to an average of $861 a year. For drivers, that meant an annual savings of $122.

But by 2012, the latest year for which statistics were available, the average annual premium had climbed to $974, just $9 below the average in 2007, the year before the state opened the market to competition.

You can read the full Boston Globe report here.