Average Cost of Car Insurance in Massachusetts

Insurers use a range of factors when determining a driver’s premiums, both related and unrelated to the driver’s personal history and traits. Keep reading to learn more about what insurers in the Old Bay State use to determine premiums, the range of average costs for car insurance policies in Massachusetts, and how the average policy in the Old Bay State differs from the national average. 

Massachusetts car insurance costs, on average, about $1,330 annually for a full coverage policy. Most insurers will offer a rate in the range of the state average. However, some drivers may be subject to higher or lower premiums depending on key factors.

Premiums vary from person to person, so while one driver may pay a rate on par with the state average, another driver may pay much more or less. Insurers use various factors to determine one’s rates, ranging from state statistics to unique facts about each driver. For example, insurers may use one’s gender, age, ZIP code, driving record, and insurance history, among other factors, to determine one’s premiums. 

Each of these factors, plus any statistics about drivers in Massachusetts, helps insurers assess the risk they take by binding a policy with you. Some drivers may be categorized as high-risk, especially if they have a history of at-fault accidents, driving without insurance, or filing an SR-22 form. High-risk drivers are at higher-than-average risk of filing a claim. Typically, insurers will translate this risk into higher premiums. 

For example, teenage boys are more statistically likely to cause or be involved in accidents than any other age group, according to the CDC. Because of this statistic, male drivers under 20 may be charged higher premiums than their female counterparts, even with a clean driving record. 

While it can be daunting, especially if you’re considered high-risk, to be in charge of an insurance premium, it’s important to remember that premiums ebb and flow over time. While you may pay more in some years, you may pay premiums much lower than average in others.

It’s always essential to put your values first when selecting a policy. If you value cost over coverage, the best policy for you may be a minimum coverage that meets the legal requirements but doesn’t exceed them. If you value coverage over cost, the best policy for you may be a full coverage one with plenty of optional coverages. However, you must always carry a policy that makes you feel at ease when getting behind the wheel. 

Here at Clovered, we tend to err on the side of safety and recommend a full coverage policy. While the premiums can get costly, it’s much easier to budget for a premium than for an accident where you lack sufficient coverage to pay for your expenses. 

The average auto insurance cost in Massachusetts is about 20% lower than the national average, but that doesn’t mean that every driver will be eligible for the average rate. Premiums are highly subjective to each driver, as insurers often use individual characteristics to determine a driver’s rates. Just as premiums vary based on the driver, insurers use state statistics to determine the average rate in each state.

Insurers typically look at a few key factors when determining the average range of premiums in a state: state population, if the state has any densely populated cities, and the number of uninsured drivers in the state. If a state has any combination of these factors, lawmakers may decide to enact a no-fault law to mitigate the demand on the legal and insurance systems. 

Massachusetts is a no-fault state because Boston is a densely populated city. No-fault states typically have higher-than-average premiums because drivers must carry personal injury protection (PIP), a relatively costly first-party medical benefit (FPMB). However, the average rate for a full coverage car insurance policy in the Old Bay State remains below the national average because the state doesn’t have an inordinately high population or number of uninsured drivers. 

If the premiums on your full coverage policy are more than $1,330 annually, you likely have a characteristic that insurers categorize as high risk. However, hope for the cheapest policy in the state isn’t lost, as many of the state’s top insurers offer lower-than-average rates and plenty of stackable discounts. 

The average car insurance in Massachusetts is a full coverage policy with some optional coverages from an insurer that offers lower-than-average base rates and plenty of discounts. Drivers must at least maintain a policy with the legal minimum amount of coverage, but many drivers elect to add optional coverages for more protection on the road.

The legal minimum coverage required in Massachusetts is $20,000 in bodily injury liability coverage per person, $40,000 in bodily injury liability coverage per accident, $5,000 in property damage liability per accident (20/40/5 liability coverage), $20,000 in uninsured motorist bodily injury coverage per person, $40,000 in uninsured motorist bodily injury coverage per accident (20/40 UMBI), and $8,000 in PIP. 

Old Bayers tend to bind a full coverage policy rather than a minimum coverage one because it offers a much more expansive range of coverage and can be tailored to one’s individual needs. A full coverage policy in the Old Bay State is any policy that exceeds the legal minimum amount of coverage and may contain optional coverages like collision coverage, comprehensive coverage, or MedPay, among other coverages.

In Massachusetts, car insurance rates average at about $1,330 annually for a full coverage policy or about $665 annually for a minimum coverage one. However, it’s crucial to remember that a premium isn’t the only thing policyholders pay when it comes to a policy. When filing a claim, policyholders must pay their deductible before receiving the full amount of their coverage benefits. 

Typically, policies with low premiums have high deductibles and policies with high premiums have low deductibles. When binding your policy with your insurer, they should offer you whichever combination you prefer. There isn’t much difference between the two; it’s just a matter of personal preference. 

The cost of auto insurance in Massachusetts per month is, on average, about $110 for a full coverage policy and about $55 for a minimum coverage policy. A minimum coverage policy will meet the state’s legal auto insurance requirements but won’t exceed them. In the Old Bay State, a minimum coverage policy has 20/40/5 liability coverage, 20/40 UMBI coverage, and $8,000 in PIP per person and accident. 

While a monthly premium is easy enough to budget for, premiums aren’t always the only thing you’ll need to pay when it comes to your policy. When outlining your budget, be sure to set aside enough funds to cover your deductible should you need to file a claim. 

The average cost of auto insurance in the Old Bay State is about $1,330 annually for a full coverage policy, or about 20% less than the national average of $1,670 annually. Car insurance isn’t particularly expensive in the Old Bay state, as the average full coverage premium in the state costs less than the national average.

However, if your premiums are higher than the state and national average, you may have a few traits or characteristics working against you to raise your premiums. The cheapest policy in the state may not be available to drivers living in a densely populated city like Boston, drivers with several at-fault accidents on their record, or drivers who may be otherwise considered high-risk. 

If you’re looking for a full coverage policy near or below the average rate in the state, the best way to find the right policy for your budget is to get and compare quotes from the state’s top insurers. By getting and comparing quotes online, you can see all the rates and policies for which you’re eligible to make the most informed decision about your policy.

Lucky for you, quotes are our specialty. Here at Clovered, we have a free quoting tool you can use to access your unique quotes in minutes. If you prefer to chat with a professional, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.