Myth BUSTERS!!

The Higher Automobile Insurance Premium Myth

The Myth:

The Labor Rate Bill Will Be Paid For By Policyholders

The Truth:

• The Labor Rate Bill will cost less than $7.00 per policyholder staggered over the first couple of years

• Insurers put their policies ON SALE by offering gimmicks that cost hundreds of dollars per policy to get and keep customers

– “Better Car Replacement”

– “Accident Forgiveness”

– “Vanishing Deductibles”

– “10-15% Bundled Home and Auto Policy

Discounts”

• Auto insurance is not a “loss-leader” for carriers – they’re making money and they’re spending millions to promote their many discounts

• It is doubtful that they will pass this small expense on

to policyholders – in fact, IT’S A MYTH!

Massachusetts maintains one of the lowest insurance rates in the country as reported by Forbes.com and Insure.com (Click here) as well as the #1 most affordable insurance in the country as reported by insweb.com.(Click here)

The Labor Hour Myth

The Myth:

Low Labor Rates in Massachusetts Are Offset By Extra Labor Hours

The Truth:

• We all know an insurance company wouldn’t just pay for unjustified labor hours

• All labor hours on estimates and final invoices are agreed to by licensed insurance company appraisers

• No insurance appraiser would EVER commit fraud against his or her own insurance company

• EXTRA LABOR HOURS IN MASSACHUSETTS ARE A MYTH – OR ARE INSURERS COMMITTING FRAUD?

The “Bad for Consumers” Myth

The Myth:

The Labor Rate Bill Is Bad For Consumers

The Truth:

• The Labor Rate Bill will enable body shops to keep up with the technology to perform safer repairs

• Vehicles are not the same as they were even five years ago – shops need to update equipment, tools and training on an ongoing basis, not once every twenty years!

• An insurance company not paying for a proper repair is committing MALPRACTICE against their policyholders

• Consumers want their vehicles repaired to the condition they were in prior to the accident – THAT’S WHAT THEY PAY FOR!