Why is Massachusetts Car Insurance So Expensive?

Why is Massachusetts Car Insurance So Expensive? -...
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Why is Massachusetts Car Insurance So Expensive?

Drivers in Massachusetts often express frustration over the high cost of auto insurance. But what exactly drives up these prices in the Bay State? Let’s delve into the reasons behind Massachusetts’ expensive vehicle insurance rates.

One significant factor contributing to the high costs is the frequency of property damage and bodily injury claims per vehicle, which surpasses rates in nearly every other state. More claims in a particular area inevitably lead to increased insurance premiums. Consequently, drivers in Massachusetts’ urban centers, such as the greater Boston metropolitan area, bear the brunt of these higher rates compared to their rural counterparts.

Despite this, Massachusetts drivers actually pay relatively low car insurance premiums on average nationwide. Insure.com reports an average annual cost of $1,245 per driver in the state, ranking it as the 15th cheapest state for auto insurance in the U.S.

However, within Massachusetts itself, there’s a notable discrepancy. While the state as a whole may fare well in terms of affordability, Boston stands out for its high insurance rates. According to Nerdwallet, Boston ranks as the 14th most expensive large city in the U.S. for auto insurance.

Nevertheless, when considering household income percentages, Massachusetts boasts the lowest car insurance rates in the nation. On average, Massachusetts motorists allocate only 1.4% of their family income towards vehicle insurance, a figure lower than any other state.

Various factors contribute to the fluctuation in insurance rates across Massachusetts. ZIP codes play a significant role, with premiums varying significantly between suburban and urban areas. Similarly, drivers with at-fault incidents on their record or residing in cities with higher crime rates face inflated premiums. Factors such as age and coverage options also influence insurance rates, with younger drivers and those opting for full coverage typically paying more.

Interestingly, unlike most states, Massachusetts prohibits insurance companies from factoring credit scores into premium calculations. This stands alongside California and Hawaii as one of the three states in the U.S. where credit scores do not impact insurance costs.

Furthermore, Massachusetts operates under a no-fault insurance system, requiring drivers to carry four types of coverage, including bodily injury liability, personal injury protection, property damage liability, and uninsured driver’s insurance. These minimums, although modest compared to other states, contribute to Massachusetts’ relatively low 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:

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

How to Get the Cheapest Car Insurance in Massachusetts

Here are three straightforward approaches to securing the most affordable car insurance in Massachusetts:

  • Online Quote Comparison: Massachusetts boasts a competitive auto insurance market, featuring numerous major providers catering to all regions of the state. Simply enter your ZIP code to swiftly compare quotes online. Switching providers could potentially yield substantial savings, sometimes amounting to hundreds of dollars.
  • Maximize Discounts: Take advantage of the various discounts offered by Massachusetts car insurance providers. These may include bundle discounts for combining multiple policies, safe driving discounts for maintaining a clean driving record, good-grade discounts for students, and more.
  • Adjust Coverage: As previously discussed, Massachusetts has minimum car insurance requirements. Consider revising your coverage to meet these minimums. By dropping optional coverages such as comprehensive and collision policies, which aren’t legally mandated, you could save significant sums, potentially totaling thousands of dollars.

In summary, while Massachusetts drivers generally enjoy comparatively low average vehicle insurance premiums nationwide, residents of Boston may face some of the highest rates in the country. Insurance premiums can vary greatly between ZIP codes, with areas prone to break-ins and accidents typically experiencing higher rates compared to safer, low-incidence suburbs.


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