Massachusetts Auto Insurance Rates: Fair?

Auto insurance rates in Massachusetts vary depending on several factors, including age, driving record, location, and vehicle type. The statewide average annual rate for car insurance in the state is $1,399 for full coverage and $469 for minimum coverage, with the cheapest rates offered by Geico, Vermont Mutual, and National General.

Massachusetts law requires vehicles to have auto insurance that meets the state's minimum requirements, which include bodily injury liability, personal injury protection, property damage liability, and uninsured motorist coverage. The specific limits for each type of coverage are $20,000 per person and $40,000 per accident for bodily injury liability, $5,000 per accident for property damage liability, and $8,000 per accident for personal injury protection.

When shopping for auto insurance in Massachusetts, it is recommended to compare quotes from multiple companies, as rates can vary significantly between insurers. Additionally, maintaining a clean driving record, choosing a higher deductible, and taking advantage of discounts can help lower insurance premiums.

Factors affecting insurance rates in Massachusetts

Several factors influence auto insurance rates in Massachusetts. Here are the key components:

• Driving Record: A clean driving record can result in more favourable insurance rates, whereas accidents or violations may increase your premium. Maintaining a clean driving record is essential for obtaining affordable insurance rates, as it indicates responsible driving behaviour.
• Age and Gender: Generally, younger and inexperienced drivers face higher premiums due to their perceived higher risk of accidents. Insurers often charge higher rates for young male drivers than their female counterparts.
• Location: Urban areas, such as Lowell, with denser traffic and higher crime rates, tend to have higher insurance rates compared to rural regions. Living in cities increases the risk of theft, vandalism, and accidents, which contributes to higher premiums.
• Vehicle Type: The cost of insuring luxury or sports cars is typically higher than that of more modest vehicles due to their higher repair costs and increased risk of theft. Newer models may also have higher insurance rates due to their higher value and costlier repair expenses.
• Coverage Limits: The higher the coverage limits and the more additional coverage options you add, the more your insurance rates will increase. Collision and comprehensive insurance, which cover accidents and non-collision incidents, respectively, contribute to higher overall rates.
• Credit Score: In Massachusetts, a higher credit score can be advantageous. Insurers may consider those with good credit scores as more financially reliable, potentially leading to reduced premiums.
• Annual Mileage: The more you drive, the higher the risk of an accident. Drivers who work from home or drive shorter distances are often rewarded with lower insurance rates due to their lower mileage and reduced risk.
• Deductible Amount: Opting for a higher deductible can lower your monthly premiums. However, it's important to remember that a higher deductible means you'll pay more out of pocket if you need to file a claim.
• Insurance History: Maintaining consistent insurance coverage without gaps can positively impact your rates.
• Discounts: Taking advantage of available discounts can help lower your insurance costs. These may include discounts for safe driving, bundling policies, completing defensive driving courses, having certain vehicle safety features, and more.
• Vehicle Safety Features: Cars equipped with advanced safety features, such as airbags and collision avoidance systems, can lead to reduced insurance rates as they provide added protection and pose lower risks on the road.
• Usage-Based Insurance: This type of insurance can benefit low-mileage drivers, safe drivers, and those who avoid hard braking. By enrolling in telematics tracking or pay-as-you-drive policies, you can potentially reduce your insurance rates.

Cheapest car insurance companies in Massachusetts

The cost of car insurance in Massachusetts is influenced by several factors, including age, driving history, location, and vehicle type. The average cost of full-coverage car insurance in Massachusetts is $1,296 per year, or about $108 per month. However, the cheapest car insurance company in Massachusetts is Vermont Mutual at $772 per year on average, or $64 per month.

• Cheapest for good drivers: National General
• Cheapest for full coverage: National General
• Cheapest after a speeding ticket: National General
• Cheapest after an at-fault accident: National General
• Cheapest for drivers with poor credit: National General
• Cheapest for young drivers: National General
• Cheapest for old drivers: National General
• Cheapest for drivers with a DUI: State Farm
• Cheapest for married drivers: State Farm

It's important to note that car insurance rates can vary significantly based on individual factors, so it's recommended to compare quotes from multiple companies to find the cheapest option for your specific needs.

Average cost of car insurance in Massachusetts

The average cost of car insurance in Massachusetts varies depending on the level of coverage, age, location, driving record, and other factors. Here is an overview of the average costs:

Average Annual Cost

The yearly average cost of car insurance in Massachusetts ranges from $458 for minimum coverage to $1,734 for full coverage. The average cost for full coverage is $1,070 per year, or about $89 per month.

Average Cost by Company

The cost of car insurance in Massachusetts can vary significantly between companies. For example, State Farm offers the cheapest full coverage at an annual premium of $483, while the most expensive average premium for similar coverage is $1,947 by Travelers.

Average Cost by Coverage Level

The level of coverage also affects the cost. Minimum coverage with state-mandated requirements typically costs around $38 per month, while full coverage with a $1,000 deductible averages $89 per month.

Average Cost by City

Location plays a significant role in determining insurance rates. For instance, the average annual cost of full coverage in Boston is $1,891, while in Cambridge, it is $1,109 for the same coverage.

Average Cost by Age

Age is a critical factor, with younger drivers often paying higher premiums. The average cost of full coverage for a 22-year-old in Massachusetts is $1,226 per year or $102 per month.

Average Cost for Newer Cars

The cost of insurance also depends on the age of the vehicle. For a 2012 model, the average annual cost for full coverage is $1,034, while for a 2022 model, it increases to $1,255.

Average Cost by Driving Record

A clean driving record can lead to lower insurance rates. In Massachusetts, the average cost of full coverage with a speeding ticket is $1,356 per year, while an at-fault accident increases the average cost to $1,712, and a DUI raises it further to $1,918 per year.

Factors Affecting Rates

Other factors influencing rates include driving experience, credit score, annual mileage, vehicle type, location within the state, and the level of coverage chosen.

Tips to Save on Car Insurance

To secure affordable car insurance in Massachusetts, it is recommended to shop around for rates, maintain a clean driving record, bundle insurance policies, and opt for higher deductibles. Taking advantage of available discounts, such as those for good students or safety features, can also help reduce costs.

Car insurance requirements in Massachusetts

Massachusetts law requires vehicles to have auto insurance before registering a vehicle in the state. The state has minimum liability limits of 20/40/5. This means that drivers must carry:

• $20,000 for bodily injury liability per person
• $40,000 for bodily injury liability per accident
• $5,000 for property damage liability per accident
• $20,000 uninsured motorist bodily injury per person
• $40,000 uninsured motorist bodily injury per accident
• $8,000 personal injury protection (PIP) per accident

Massachusetts is a no-fault state, meaning that your insurance will pay for your damages regardless of who is at fault, up to the limit of your policy.

Massachusetts drivers must also carry uninsured motorist coverage. Unfortunately, not all drivers have insurance, and uninsured motorist coverage steps in to offer added protection for your injuries if the at-fault party has no insurance coverage and cannot pay for your medical expenses. In Massachusetts, drivers are required to carry at least $20,000 per person and $40,000 per accident in uninsured motorist coverage.

Massachusetts does not mandate collision or comprehensive coverage as part of its minimum insurance requirements, but lenders do if you finance or lease a car. This requirement ensures that the car, serving as collateral for the loan or lease, is covered for damage or theft. For those who own their vehicles outright, it is an optional coverage that can provide peace of mind.

How to save money on car insurance in Massachusetts

Shop around for rates

Comparing quotes from multiple insurers can lead to finding the cheapest car insurance in Massachusetts. Insurers rate risk differently, so shopping around is important.

Maintain a clean driving record

A clean driving record free of accidents and traffic violations can significantly reduce insurance premiums, as it indicates responsible driving behavior to insurers.

Bundle insurance policies

Bundling car insurance with other policies like homeowners or renters insurance can unlock discounts and lead to more affordable overall rates.

Increase your deductibles

Opting for higher deductibles can lower your premium costs. Ensure you choose a deductible amount that you can comfortably afford in case of a claim.

Take advantage of discounts

Insurers offer various discounts for things like being a good student, driving a low number of miles annually, or having anti-theft devices installed in your vehicle.

Choose your vehicle wisely

Driving a car that is less expensive to repair or replace and has strong safety features can lead to lower insurance rates.

Improve your credit score

In Massachusetts, a good credit score can influence your insurance rates. Work on improving your credit score to potentially lower your insurance costs.

Frequently asked questions