Why is Massachusetts Car Insurance So Expensive?

Why is Massachusetts Car Insurance So Expensive?

Drivers in Massachusetts frequently grumble about the cost of auto insurance. Why does vehicle insurance in Massachusetts cost so much? Continue reading to find out.

Massachusetts has more property damage and bodily injury claims per vehicle than nearly any other state.

When there are more claims in a specific location, your auto insurance coverage will cost more.

That means that drivers in Massachusetts’ urban areas, such as the greater Boston metropolitan area, will pay higher auto insurance rates than those in more rural locations.

The average driver in Massachusetts pays among the lowest car insurance premiums in the United States.

According to Insure.com, Massachusetts drivers pay an average of $1,245 per year for vehicle insurance, making it the 15th-cheapest state in the US. Read More When Must Your Vehicle Have Valid Insurance Cover in 2023

Boston drivers pay high rates for car insurance.

According to most reports, Massachusetts is one of the most affordable states in America for vehicle insurance.

According to some reports, average vehicle insurance premiums in Massachusetts are near to or somewhat higher than the national average, while the majority of reports place Massachusetts well below the national average.

When it comes to Boston, these assumptions are challenged. According to Nerdwallet, Boston is the 14th most costly large city in the US for vehicle insurance.

Massachusetts, on the other hand, has the lowest car insurance rates in the United States, depending on household income percentage.

The average motorist in Massachusetts pays 1.4% of their family income on vehicle insurance, which is lower than any other state.

Why is Massachusetts Car Insurance So Expensive? Other Factors That Affect Car Insurance in Massachusetts

Several factors influence vehicle insurance rates in Massachusetts, including:

ZIP Code: Insurance costs vary greatly throughout Massachusetts. Drivers in the suburbs of Massachusetts, for example, pay some of the lowest car insurance premiums, while drivers in city ZIP codes pay the most.

Drivers in smaller towns or cities with high crime rates pay considerably higher premiums. That is why drivers in Newton, Lexington, and Needham pay low vehicle insurance rates, and those in Brockton and Lynn pay more.

Driving Record: Drivers who have had at-fault incidents will pay higher insurance premiums. Speeding fines and other movement infractions will also result in higher rates.

Age: Drivers aged 30 to 65 typically pay the lowest car insurance rates in Massachusetts, with prices peaking in their 50s and 60s. Younger drivers pay more than senior drivers.

Coverage Options: Full coverage (liability, collision, and comprehensive coverage) costs more than just a liability policy.

Your Credit Score Does Not Impact Car Insurance Premiums in Massachusetts

Your credit score affects your vehicle insurance costs in almost every state in the United States. Drivers with low credit ratings will pay more for auto insurance than those with strong credit scores.

However, Massachusetts is one of three states that prohibits insurance firms from setting premiums based on credit scores.

California, Hawaii, and Massachusetts are the only three places in America where insurers cannot use your credit score to determine your insurance price. If you’re wondering why you’re paying such expensive vehicle insurance premiums in Massachusetts, a low credit score isn’t the problem.

Minimum Car Insurance Requirements in Massachusetts

Massachusetts is one of 13 states in America with a no-fault insurance system. Most other no-fault jurisdictions have some of the most costly auto insurance in the country.

Under no-fault regimes, your own insurance company pays regardless of who caused the accident. No-fault states also have different insurance requirements.

Massachusetts requires drivers to carry four types of insurance, including:

  • Coverage for bodily injury liability is $20,000 per person and $40,000 per accident.
  • Personal injury protection (PIP) coverage is $8,000 per person and per accident.
  • $5,000 in property damage liability coverage per accident.
  • Uninsured driver’s insurance costs $20,000 per individual and $40,000 per accident.

These minimums are modest in comparison to other states, which could explain why Massachusetts has one of the lowest no-fault vehicle insurance rates.

Cheapest Auto Insurance Companies in Massachusetts.

The following insurance providers provide the cheapest policies for minimal coverage in Massachusetts. If you’re seeking for the cheapest insurance option in Massachusetts, you should start by comparing rates from one of the firms listed below:

RankInsurance CompanyAnnual Premium
1Hanover$390
2Safety$410
3Metropolitan$420
4GEICO$540
5Arbella Insurance$720
6Progressive$760
7Plymouth Rock Assurance$960
8Travelers$970

How to Get the Cheapest Car Insurance in Massachusetts

Here are three simple strategies to find the cheapest car insurance in Massachusetts:

  • Compare Quotes Online: Massachusetts has a competitive vehicle insurance sector, with dozens of major insurance providers serving all areas of the state. Simply input your ZIP code to compare estimates online immediately. Making the switch can save you hundreds.
  • Take Advantage of Discounts: Massachusetts car insurance providers provide a variety of discounts, such as bundle discounts, safe driving discounts, good-grade discounts, and more.
  • Drop Coverage: We discussed the minimum car insurance regulations in Massachusetts before. Consider cutting your auto insurance to this minimum amount. You can save thousands of dollars by dropping comprehensive and collision policies, which are not legally needed.

Final Word on Why is Massachusetts Car Insurance So Expensive?

Massachusetts drivers pay some of the lowest average vehicle insurance premiums in the United States. However, Boston drivers pay some of the highest rates in the United States.

Some ZIP codes have higher insurance premiums than others. A ZIP code with a high rate of break-ins and accidents, for example, will pay greater insurance premiums than a ZIP code in a safe, low-incidence suburb.

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