Budget cuts could affect automobile insurance rates

One of the least discussed proposals in Gov. Deval Patrick’s budget cuts could cost insured drivers in the commonwealth a little more money.Patrick attached several acts making appropriations for Fiscal Year 2009 to his budget cuts presented last week. If passed, the acts could increase the cost of doing business for insurance companies and possibly impact rates for drivers in the state.The acts would provide a minimum of $6.3 million for State Police and the Municipal Police Training Committee, “provided 100 percent of the amount appropriated” shall be assessed upon property and casualty insurance companies writing motor vehicle insurance policies in the commonwealth.Section 2 of the act provides $3.1 million for the Municipal Police Training Committee and Section 3 provides $3.2 million for State Police. Section 4 would provide an unspecified amount for training and other programs related to the Municipal Police Training Committee.Sen. Thomas McGee (D-Lynn) said Patrick previously filed a bill similar to the provisions in the act that was rejected by the Legislature.”We were opposed,” he said. “There wasn’t even much of a discussion. It was rejected outright and I think it’s something that isn’t even on the table at this point as far as the Legislature is concerned.”McGee said he believes the general consensus is there have been a lot of changes in the automobile insurance industry and the impact of those changes haven’t even shaken out yet.”We’re opposed to additional changes in the insurance industry,” he said. “This can’t take affect without Legislative approval and I don’t even think it’s on the table at this point as far as we’re concerned.”State Rep. Kathi Reinstein (D-Revere) said Patrick’s previous bill did not make it past the House Ways & Means Committee. She said she hasn’t made a decision on how she would vote on the acts but she does see some merit.”I know there have been a lot of issues with police training,” she said. “There are harbor masters, constables, university police, municipalities and state. Not all police are trained under one umbrella and this would change that. We have a huge amount of state police eligible for retirement. Lack of police training and adequate police would hurt everyone in the commonwealth. Having enough adequately trained police is vital.”If this passes it may have an effect on policy holders,” she said. “I was told it would have an impact of approximately $5 per policy.”Several North Shore insurance agents said they were not aware of the acts attached to the budget document and were unsure what effect it would have on consumers, but Daniel Rizzo of the Rizzo Insurance Group in Revere said he believes the impact on consumers would be negligible.”There are three or four million vehicles on the road in Massachusetts,” he said. “So I think it is unlikely an aggregate assessment of $10 million to insurance companies would have an impact on consumers. If it does shame on the insurance companies.”