Commonwealth Automobile Reinsurers (CAR), created pursuant to Chapter 175, Section 113H,
of the Massachusetts General Laws, is the industry operated residual market and statistical
agent for motor vehicle insurance in the Commonwealth of Massachusetts and operates pursuant
to a Plan and Rules of Operation.
In its residual market role, CAR provides access to private passenger and commercial motor
vehicle liability and physical damage insurance to that segment of the state's motoring
public that is unable to obtain coverage through the voluntary market.
Every company licensed to write motor vehicle insurance in Massachusetts is required to
become a member of CAR. Member companies writing private passenger insurance will be
eligible for appointment as an Assigned Risk Company and be required to accept assignments
through the Massachusetts Automobile Insurance Plan (MAIP) in accordance with the Rules of
Operation. All member companies writing commercial automobile insurance are required to
participate financially in the residual market pool, while a limited number of member companies
have been selected to issue and service commercial residual market policies.
All licensed property and casualty producers are required to become certified as Assigned
Risk Producers for private passenger residual market purposes and may apply for appointment
as an Exclusive Representative Producer for commercial automobile insurance business. This
includes those producers who are licensed but unable to obtain a voluntary market contract.
In its role as statistical agent, CAR collects, edits, and processes Massachusetts private
passenger and commercial automobile premium and loss statistics. CAR processes more than
80 million statistical records annually and utilizes numerous programs to ensure that this
data meets the highest standards for data quality. The data is subsequently provided to the
Automobile Insurers Bureau of Massachusetts, the Merit Rating Board, and the Highway Loss