Why Is Car Insurance So Expensive in Massachusetts?

Last Updated on December 22, 2022

Drivers in Massachusetts often complain about the price of car insurance. Why is car insurance in Massachusetts so expensive? Keep reading to find out.

Why Is Car Insurance So Expensive in Massachusetts?

Insurance Premiums Vary Widely Across Massachusetts

Statewide, Massachusetts has more property damage and bodily injury claims per motor vehicle than almost any other state.

When there are more claims in a given area, then you’ll pay more for car insurance coverage.

That means drivers in urban areas of Massachusetts – like the greater Boston metropolitan area – will pay higher rates for car insurance than drivers in more rural areas.

Statewide, the average driver in Massachusetts actually pays some of the cheapest rates for car insurance in the United States. According to a report by Insure.com, drivers in Massachusetts pay an average of $1,245 per year for car insurance, making Massachusetts the 15th cheapest state in the country for car insurance.

Drivers in Boston Pay High Rates for Car Insurance

Statewide, most reports show that Massachusetts is one of the more affordable states in America for car insurance. Some reports show that average car insurance premiums in Massachusetts close to the national average or slightly above it, but most reports place Massachusetts significantly below the national average.

These assumptions get thrown out when looking at Boston. According to a report from Nerdwallet, Boston is the 14th most expensive major city in the United States for car insurance.

However, Massachusetts is the cheapest state in America for car insurance based on percent of household income. The average driver in Massachusetts spends 1.4% of household income on car insurance, which is a smaller percentage than any other state.

Other Factors that Impact Car Insurance in Massachusetts

Various factors impact car insurance premiums in Massachusetts, including:

ZIP Code: Insurance premiums vary widely across the state of Massachusetts. Drivers in the suburbs of Massachusetts pay some of the lowest rates for car insurance, for example, while drivers in city ZIP codes pay the highest rates. Drivers in smaller towns or cities with high crime rates, meanwhile, pay even higher premiums. That’s why drivers in Newton, Lexington, and Needham all pay cheap rates for car insurance, while drivers in Brockton and Lynn pay higher rates.

Driving Record: Drivers with at-fault accidents on their driving record will pay higher rates. Speeding tickets and other moving violations will also raise rates.

Age: Generally, drivers between ages 30 and 65 pay the lowest rates for car insurance in Massachusetts, with rates bottoming out in your 50s and 60s. Younger drivers pay higher rates than older drivers.

Coverage Options: Drivers with full coverage (liability, collision, and comprehensive coverage) will pay more for car insurance than drivers with basic liability coverage.

Your Credit Score Does Not Impact Car Insurance Premiums in Massachusetts

In virtually every state in America, your credit score will impact your car insurance premiums. Drivers with low credit scores will pay more for car insurance than drivers with high credit scores.

Massachusetts, however, is one of three states that forbids insurance companies from using credit scores to set prices.

California, Hawaii, and Massachusetts are the only three states in America where insurers cannot use your credit score to set your insurance premiums. If you’re wondering why you’re paying high rates for car insurance in Massachusetts, then a poor credit score isn’t the culprit.

Minimum Car Insurance Requirements in Massachusetts

Massachusetts is one of 13 states in America that uses a no-fault insurance system. Most other no-fault states have some of the most expensive car insurance in the country. Under no-fault systems, your own insurance company pays regardless of who was at-fault for the accident. No-fault states also tend to have unique insurance requirements.

In Massachusetts, drivers are required to carry four types of insurance, including:

  • $20,000 of bodily injury liability coverage per person and $40,000 of bodily injury liability coverage per accident
  • $8,000 of personal injury protection (PIP) coverage per person and per accident
  • $5,000 of property damage liability coverage per accident
  • $20,000 of uninsured driver insurance per person and $40,000 of uninsured driver insurance per accident

These minimums are low compared to other states, which is one possible reason Massachusetts is one of the cheapest no-fault states for car insurance.

Cheapest Auto Insurance Companies in MA

The following insurance companies offer the cheapest policies for minimum coverage in Massachusetts. If you are looking for the cheapest possible insurance option in MA, you should start by comparing quotes from one of the companies below:

RankInsurance CompanyAnnual Premium
5Arbella Insurance$720
7Plymouth Rock Assurance$960

How to Get the Cheapest Car Insurance in Massachusetts

Here are three easy ways to get the cheapest possible car insurance in Massachusetts:

Compare Quotes Online: Massachusetts has a competitive car insurance industry, and there are dozens of major insurance providers serving all corners of the state. Compare quotes online today by entering your ZIP code. You can save hundreds by making the switch.

Take Advantage of Discounts: Massachusetts car insurance companies offer all sorts of discounts, including bundling discounts, safe driving discounts, good grade discounts, and more.

Drop Coverage: We mentioned the minimum car insurance requirements in Massachusetts above. Consider lowering your car insurance to this minimum level. Dropping comprehensive and collision coverage (which are not legally required) can save you thousands.

Final Word on Why Insurance Is So Expensive in Massachusetts

Statewide, drivers in Massachusetts pay some of the lowest rates in America for car insurance, on average. However, drivers in Boston pay some of the highest rates in the United States.

Certain ZIP Codes have higher insurance rates than others. A ZIP code with high rates of break-ins and accidents, for example, will have higher insurance premiums than a ZIP code in a safe, low-incident suburb.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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