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Auto insurance rates rising in Massachusetts

Massachusetts drivers will see auto insurance rates rise between6% and 9% in the coming months, The BostonGlobe reported July 7.

MAPFRE USA Corp.Inc. is raising its rates by 3% and United Services Automobile Association has been raising ratesby an average of 8% since May for its more than 80,000 drivers, according to thereport.

Safety Insurance has scheduled a rate hike of more than 6% whichwill go into effect later this month, the news outlet said, citing the MassachusettsAssociation of Insurance Agents. Liberty Mutual sought a rate hike of 8% but settledat an increase of 5% which was implemented in April, the news outlet reported.

Insurance executives reportedly told the Globe that the cost of repairing cars andhealth care expenses are rising. Low interest rates and the struggling energy sectorhave resulted in lower investment income for insurers, increasing the pressure toraise auto insurance rates, according to the report.