Vast Net WorthWhy is Car Insurance So Expensive in Massachusetts? Massachusetts drivers commonly complain about the high cost of auto insurance. Why is car insurance in Massachusetts so expensive? Continue reading to find out.
The cost of insurance varies substantially. Massachusetts has more claims for property damage and personal injury per motor vehicle than nearly any other state.
When there are more claims in one area, your auto insurance coverage will cost more.
This means that drivers in urban areas of Massachusetts, such as the greater Boston metropolitan area, will pay more for vehicle insurance than those in more rural areas.
The average Massachusetts driver pays some of the lowest car insurance prices in the country.
According to Insure.com, Massachusetts drivers pay an average of $1,245 per year for vehicle insurance, ranking the state 15th in the US.
Drivers in Boston Pay High Rates for Car Insurance
Most figures show that Massachusetts is one of the least expensive states in America for car insurance.
According to some studies, average vehicle insurance premiums in Massachusetts are close to or somewhat higher than the national average, while most reports show that Massachusetts is far lower than the national average.
These preconceptions are challenged when looking at Boston. According to Nerdwallet, Boston is the 14th most expensive metropolitan city in the United States for vehicle insurance.
However, in terms of vehicle insurance costs as a percentage of household income, Massachusetts is the cheapest state in America.
The average Massachusetts driver spends 1.4% of his or her family income on auto insurance, the lowest amount in the US.
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Why is Car Insurance So Expensive in Massachusetts?
You may have noticed that vehicle insurance premiums are rising throughout the country, including in Massachusetts.
MoneyGeek discovered that factors such as high driver density, mandated coverage for uninsured motorists, and others can raise prices.
Personal injury protection (PIP) coverage is also required for Massachusetts drivers. This means that when giving basic coverage, insurers include PIP, which can raise prices.
Other Factors that Impact Car Insurance in Massachusetts
The following factors influence Massachusetts vehicle insurance premiums:
In Massachusetts, insurance premiums vary substantially by ZIP code.
Drivers in the suburbs of Massachusetts, for example, pay some of the lowest rates for vehicle insurance, while drivers in city ZIP codes pay the highest.
Meanwhile, drivers in smaller towns or cities with high crime rates pay far higher insurance premiums.
As a result, drivers in Newton, Lexington, and Needham pay lower automobile insurance prices than those in Brockton and Lynn.
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Drivers with at-fault incidents on their record will face higher insurance prices. Speeding fines and other traffic offenses will also raise rates.
Drivers between the ages of 30 and 65 had the lowest vehicle insurance premiums in Massachusetts, with rates increasing in their 50s and 60s.
Younger drivers must pay more than older drivers.
Coverage Options: Drivers with full coverage (liability, collision, and comprehensive coverage) will pay more for automobile insurance than drivers with only liability coverage.
Your Credit Score Does Not Impact Car Insurance Premiums in Massachusetts
In practically every state in America, your credit score will have an impact on your vehicle insurance premiums. Drivers with bad credit will pay more for car insurance than those with good credit.
However, Massachusetts is one of three states that restricts insurance companies from basing pricing on credit ratings.
Insurers can use your credit score to decide your insurance premiums only in California, Hawaii, and Massachusetts.
If you’re wondering why you’re paying so much for Massachusetts auto insurance, don’t blame it on a poor credit score.
Minimum Car Insurance Requirements in Massachusetts
Massachusetts is one of 13 states in the United States that have no-fault insurance. Most other no-fault jurisdictions have among the country’s highest vehicle insurance premiums.
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No matter who was at fault for the accident, your own insurance company pays under no-fault regimes.
No-fault states are also required to have insurance.
Drivers in Massachusetts are required to carry four types of insurance, including bodily injury liability coverage of $20,000 per person and $40,000 per accident.
$8,000 in personal injury protection (PIP) coverage per person and accident
$5,000 per accident in property damage liability coverage
The coverage for uninsured drivers is $20,000 per person and $40,000 per accident.
These requirements are low compared to other jurisdictions, which may explain why Massachusetts has one of the lowest no-fault vehicle insurance rates.
How to Get the Cheapest Car Insurance in Massachusetts
Here are three simple strategies to find the cheapest car insurance in Massachusetts:
- Online Quote Comparison: Massachusetts has a competitive auto insurance sector, with dozens of large insurance firms serving the whole state. Enter your ZIP code to compare quotes online today. Making the move can save you hundreds of dollars.
- Take Advantage of Discounts: Massachusetts auto insurance companies provide numerous discounts, such as bundling discounts, safe driving discounts, good-grade discounts, and more.
- Drop Coverage: We already discussed the minimum car insurance requirements in Massachusetts. Consider decreasing your auto insurance to the bare minimum. Dropping comprehensive and collision coverage (which are not needed by law) can save you thousands of dollars.
Final Word on Why is Car Insurance So Expensive in Massachusetts?
On average, Massachusetts drivers pay some of the lowest vehicle insurance premiums in the country.
However, Boston drivers pay some of the highest rates in the country. Insurance prices are higher in some ZIP codes than others.
For example, a ZIP code with a high number of break-ins and accidents will have higher insurance premiums than a ZIP code in a safe, low-incident suburb.
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