Reacting to Massachusetts' new consumer insurance rateregulations, insurance companies announced decreases for autoinsurance customers of up to 30 percent.

Nineteen companies made filings in time for today's deadline forcompanies doing business in the state, and all of them filed fordecreases on average.

Prior to the inauguration of the new managed competitionregulation, insurers' rates were set by the state insurancecommissioner. The only variance allowed was for groups or gooddriver discounts.

The new regulation also changes the manner in which the stateapportions high-risk drivers to insurers who are obliged to, offercoverage. Some carriers had complained that the old arrangement wasinequitable, allowing some companies to game the system and avoidtheir proportional share of the residual market.

Among the insurers who said they will seek rate cuts, Worcester,Mass.-based Hanover Insurance Group, Inc. said its rates andproduct filing sought Division of Insurance approval to reduce thecost of auto insurance by as much as 30 percent for its bestcustomers and 8 percent on average.

USAA said that it filed to reduce auto insurance ratesthroughout the state by 15 percent on average.

Travelers of Massachusetts in Worcester said it was offering newdiscounts and plans to provide savings to approximately 75 percentof its customers. It said more than a third of its customers willsee savings greater than 10 percent, with some customers saving asmuch as 20 percent. Overall, not including the value of anydiscounts, customers can expect an average savings of 6percent.

Hanover said it also asked to:

o Cut rates by 20 percent or more for approximately 25 percent,or about 40,000 of its customers. The company currently insuresabout 150,000 drivers in the state.

o Cut the state's six-year surcharge period--during whichdrivers pay penalties for at-fault accidents and moving violationsas currently mandated by the state--in half, to only threeyears.

o Offer several new coverage options, as well as new or enhanceddiscounts and account credits that enable drivers to reduce theircosts beyond simple rate reductions.

At the same time, the company announced that it will expand itspresence in the state, adding more local independent insuranceagents to its network.

"Contingent upon the division's approval, we will on April 1offer Massachusetts drivers the competitive rates and innovativeproducts they have earned," said Vincent Nieroda, president of TheHanover's Massachusetts personal lines group.

He said the regulatory change by Commissioner Nonnie Burnes meanCommonwealth drivers "will gain the benefits that a competitivemarket gives drivers in every other state--better products,services and pricing."

According to the statement from Mr. Nieroda, even thoughcompetition is just getting under way, Massachusetts drivers "willrealize significant savings now, [and] many more benefits willevolve over time, as new companies enter the market, new productsare introduced and companies fight for market share."

He said the company's plans to expand its already strongindependent agent distribution channel also will benefitconsumers.

Hanover said it will also offer deeper discounts for individualswho insure more than one car, drive less than 7,500 miles a year,or successfully complete a driver's education program. The companyalso will offer a new discount for drivers who take an advanceddriver training program, and will offer an account credit for anydriver who purchases insurance for his or her cars as well as hisor her apartment, condo or house.

For certain products under certain conditions, Hanover said itwill waive the surcharge for one at-fault accident under a driver'spolicy every 36 months.

The Hanover, which currently insures more than?????, will makeConnections Auto available for new and renewal business effectiveApril 1, contingent upon approval. Connections Auto, like all ofThe Hanover's products, will be sold exclusively though thecompany's network of independent agent partners.

USAA announced said it was able to offer lower rates due to thestate's regulatory improvements, "which for the first time innearly 30 years allows private insurers to set their own rates." Ifapproved, the company's decrease goes into effect April 1,2008.

USAA said for a number of years it has wanted to pass along thesavings it has realized through efficient operations and decreasingclaims costs, "but the state regulatory environment required aone-size-fits-all approach.

"Until now, all insurers writing policies in the state wererequired to charge rates annually set by the Commissioner. USAAmembers and policyholders residing in Massachusetts will benefitfrom a newly dynamic marketplace that fosters competitive pricingand services among insurance providers."