Independent Insurance Agencies Deem AAA Bill Unfair, Offer Alternative Plan

The Massachusetts Association of Insurance Agents and its 1,500 member agencies are blasting a plan by Governor Deval Patrick to outsource Registry of Motor Vehicle functions, such as license renewal and registration, exclusively to AAA of Massachusetts. MAIA contends that Governor Patrick’s plan leaves Massachusetts residents with unequal access to public services and creates an uneven playing field within the Massachusetts auto insurance industry. As an alternative, MAIA has put forward its own proposal to ease the strain on overworked RMW offices across the state.

FAVORING AAA

Because AAA is a membership-based company, the expanded registry services they provide are only available to AAA members. “License renewals and registration are a public service,” noted Frank Mancini, President of MAIA. “The state should not be allowed to exclude certain citizens from accessing basic state services simply because they are unable or unwilling to pay for membership in a private organization.”

MAIA also insists that allowing AAA to provide registry functions gives AAA’s insurance agency business an unfair advantage over other agencies writing auto insurance in Massachusetts. “By providing registry functions and insurance services under the same roof, AAA can more easily lure customers in and convince them to leave their current insurer for AAA,” explained Mancini.

By outsourcing registry functions to one private company, MAIA argues, Massachusetts’ consumers could easily construe the Governor’s plan as a state endorsement of AAA’s products and services. “At a time when the Massachusetts economy is in deep turmoil, the state should not be promoting policies that favor one particular company at the expense of thousands of small locally owned businesses,” insisted Mancini.

MAIA’S PLAN

MAIA feels strongly that any outsourced registry function must be made available to every Massachusetts’ resident, regardless of their membership status in a private, for-profit organization. To this end, MAIA has offered to make certain non-license plate bearing transactions available to the general public at every independent insurance agency in Massachusetts.

“While AAA has only 26 branches in Massachusetts and only offers registry services to paying AAA members, MAIA has over 1,500 member agencies located in virtually every city and town in the Commonwealth,” explained Mancini. “There is simply no question that we can reach more people and be of more assistance to the RMV as it seeks to ease the burden on its overworked offices.”

The transactions proposed by MAIA would include registration transfers, renewals and re-registrations, registration amendments, plate cancellations/lost plate transactions, duplicate registrations, summer/winter swaps, registration reinstatements, e-stamps to stop plate revocations, salvage title/owner-retained title applications, surviving spouse transactions, and duplicate title applications.

“All of the transactions MAIA is offering to perform for the Registry already begin in an insurance agent’s office,” explained Mancini. “Our proposal would simply close the loop and allow citizens to initiate and complete their transactions in one place without having to ever set foot in a registry itself.”

These transactions would be performed at virtually no cost to the RMV. They could be performed by agents without any special software or equipment and would require nothing more than a special password for agents to log onto the RMV website.

“We look forward to sitting down with the Governor and RMV officials to discuss this proposal further, “concluded Mancini. “It is the fairest and most effective way to outsource Registry functions while at the same time ensuring universal access to this public service.”

For more information please contact Dennis Murphy at (617) 423-0028