Written by While this may not be a huge story, or a national one – it’s still very important for residents of Massachusetts.
Arbella Insurance, a local (to the State of Massachusetts) insurer that currently writes auto insurance policies in the state facing has decided to up its ad spending in the local market for 2008. As both the current insurers and residents of Massachusetts are realizing – lower car insurance premiums are coming as will increased low cost competition.
What does this mean to Arbella? It’s not just Arbella that’s going to face this issue, the other current 19 insurers will as well. Increased competition in this state, while great for residents, can drastically reduce revenue/profit for the businesses (insurers) due to attrition (customers switching insurance companies). There are only a few ways companies like Arbella can compete with low cost insurers like Progressive, great customer service and smart ad spending.
Arbella is mum on how much they are increasing their ad spending by, but said that premiums for the average customer will drop from 7.8%, to more than 20% for drivers with great records from this time last year.
