Massachusetts Car Insurance Guide
(Cheap Rates + Best Companies)

Massachusetts Statistic Summary

Road Miles 36,384

Registered Vehicles 4,869,170

State Population 6,902,149

Most Popular
Vehicle RAV4

Percentage of
Uninsured Motorists 6.2

Driving Deaths Speeding: 98 Drunk Driving: 120

Average Premiums Annually

Liability: $587.75 Collision: $348.68 Comprehensive: $1.28.92

Cheapest Provider: State Farm Mutual Auto

Boasting such sights to see as a house in Rockport that is built entirely out of newspaper and the Basketball Hall of Fame in Springfield, Massachusetts really is an exciting state.

The Bay State also ranks 40th in the nation for overall roadway miles even though it has a population of nearly 7 million people.

With so much to see, so many people to see it, and not that much road to get there, driving in Massachusetts does not come without its problems.

This is why it pays to have the right car insurance provider backing you up with every mile that you put behind you. How do you know which car insurance provider is right for you? This is where we come in.

Keep reading to find out about all of the information that we have collected for you to help you make the best decision for you and your family when purchasing your policy.

Massachusetts Car Insurance Coverage and Rates

The first thing that most people consider when they begin shopping for a car insurance policy is the amount of coverage they need and the rates that they will pay for it. There is so much more to it than that though.

Understanding your state’s car culture and the minimum coverage requirements before you purchase your policy can prevent hours of frustration later.

According to the Insurance Information Institute Massachusetts ranks 9th among the top 10 most expensive states for Automobile insurance. This is why shopping around can really save you money. We can help you with that.

We have looked at the statistics and sorted through all of the data concerning the Bay State so that we can help you make a smart decision when it comes to choosing your car insurance provider.

Keep scrolling to find out what the minimum requirements in Massachusetts are and how we can help you get the most for your money.

Massachusetts Car Culture

Ever since the Mayflower sailed into Plymouth Harbour in 1620 the Bay State has been known as a place where adventure meets history. It is no wonder then that so many residents of Massachusetts hit the open road to take in all that the state has to offer.

Admitted to the Union as a state on February 6, 1788, as the 6th state in the Union, some of the most popular ways to get around in Massachusetts include:

• Bicycle
• Tour Bus
• On foot in the larger cities
• And by private passenger car

“Leaf Peepers” also travel to the Bay State in the fall just to witness one of nature’s most beautiful displays: The Fall Foliage.

From the top of Mount Greylock in the northwest corner of Massachusetts to the sea-level landscapes of Martha’s Vinyard and Nantucket, the Bay State really is a day-tripper’s paradise. Vehicles and drivers in the Bay State are also as diverse as the scenery.

Whether you are a hardcore commuter who drives a hybrid and wants to save the planet, a gear-head who has a need for speed and performance (fuel costs be darned), or the type of driver who doesn’t care about either because your car is only meant to get you from A to B, you are going to need car insurance in the Bay State. In fact, it is required.

Minimum Coverage in Massachusetts

Massachusetts requires that all vehicle registered in the Bay State have the following minimum coverage:

• Bodily injury liability: $20,000/$40,000
• Uninsured/Underinsured Motorist: $20,000/$40,000
• Personal injury protection: $8,000
• Property damage liability: $5,000

AAA also notes that by law a person’s

Policy must cover any person operating [a] vehicle with [the] owner’s express or implied consent.

The official state website for Massachusetts also states that:

Your auto insurance policy must list all licensed drivers living in your household who are related to you by blood, marriage, or adoptoon, including drivers already covered by their own insurance policies.

The Bay State does allow you to exclude household members who don’t drive your car, but only if you have submitted an “exclusion form” to your car insurance provider.

If you fail to comply with the minimum requirements for car insurance in the Bay State you can be subject to fines, loss of your driving privileges, and in some cases imprisonment. The risks far outweigh the benefits so you should always be sure that you maintain the proper amount of coverage when operating a motor vehicle on Massachusett’s roadways.

Forms of Finacial Responsibility

Unlike most states in the Union, Massachusetts does not require that a driver carry proof of insurance when operating a motor vehicle.

This is because all of the information regarding the status of your insurance policy is already electronically available to law enforcement via the RMV database.

This can be a real headache for Massachusetts drivers of the Bay State who are pulled over in a state that does require such proof.

The best way to avoid any hassles when traveling outside of Massachusetts then is to ask your provider if there is a place that you can download and print a paper copy of your car insurance ID card or access it electronically since 46 states in the country accept either one.

If your car insurance provider does not have a way for you to access either one then you can always carry a copy of your car insurance policy with you just to be on the safe side.

Premiums as a Percentage of Income

On average 2.2 percent of every resident of the Bay State’s annual disposable income is spent on car insurance.

This may not seem like a lot but when broken down the true cost of choosing the wrong car insurance provider is made clear.

The per capita disposable income for residents of Massachusetts is approximately $50,366 a year. Bay Staters spend about $1,129 of that income on car insurance assuming that the driver has no tickets or accidents.

This means that most Massachusetts residents spend around $94 of their $4,197 monthly budget on car insurance.

Car insurance rates in the Bay State have also been on an upward trend meaning that your monthly budget could be stretched even further in the next few years.

Thinking about moving to Connecticut or New York to avoid the pinch?  Forget it.

Connecticut ranks only slightly lower on the Insurance Institute’s list of top 10 most expensive states for car insurance, and New York actually ranks as the 3rd highest in the nation.

If you have tickets or accident the price could go even higher no matter where you live which is why you should always shop around for your car insurance policy first.

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Core Coverage

One of the best ways to get every penny’s worth from your car insurance policy is to understand what the state of Massachusetts requires of you as an owner and operator of a motor vehicle in the Bay State.

The rates reflected in the table above are from 2015 so with the upward trend in car insurance premiums over the last three years the rates for 2019 will be higher. This is why it is so important to educate yourself before you purchase your car insurance policy.

Part of shopping around is looking at the providers in your area and the rates that they are offering for a driver like you.

Additional Liability

Because every driver is unique it could pay big to add additional liability coverage to your policy.

Massachusetts already requires the purchase of uninsured/underinsured motorist as part of the minimum state requirements but another option available to you in the Bay State is the addition of MedPay to your policy.

MedPay insurance can help you cover the costs of the medical payments of all passengers in your vehicle who are injured in an accident.

This additional liability coverage kicks in after your policy limits have been reached. MedPay will even help pay for such things as the dreaded and notoriously expensive ambulance ride.

When deciding if you should add MedPay or any other type of additional coverage to your policy it is smart to consider the loss ratios of the companies that you are looking at.

While NAIC currently only has data regarding the loss ratio as it pertains to Personal Injury Protection the three-year data collected on this type of coverage reveals that Massachusetts has a relatively healthy car insurance market overall.

In 2014 the Bay State had a loss ratio for Personal Injury Protection of just 65 percent. This percentage is good news for you as you shop for car insurance.

Why? What does the loss ration really mean to you? Simply put:

• A High Loss Ratio (over 100 percent) would indicate that the car insurance companies in Massachusetts are losing money because they are paying out to many claims. This could result in bankruptcy if these companies aren’t careful.
• A Low Loss Ratio would indicate that companies in the Bay State are paying out to few claims which could result in the denial of your claim by your car insurance provider should you ever need to file one with them.

With a loss ratio of 65 percent then, Massachusetts falls near the middle indicating that the overall car insurance market is strong and stable.

The Bay State also ranks 49th in overall uninsured/underinsured motorists meaning that only 6.2 percent of its drivers are failing to comply with the state minimum requirements which is good news for you when shopping for coverage.

Less uninsured/underinsured motorists on the roadway translates into lower overhead for your car insurance provider which keeps rates down.

Add-ons and Endorsements

Even though Massachusetts has minimum coverage requirements that can help you if you sustain an injury or suffer property damage in an accident sometimes there is just not enough coverage to go around.

This is where choosing the right combination of add-ons or endorsements to add to your policy can really help out.

Some of the best-known add-ons include:

• Guaranteed Auto Protection (GAP)-This add-on covers your car if it is ever totaled or stolen. If you suffer from either of these unfortunate events then GAP will pay any money that is remains owed on the lease or loan as well.
• Substitute Transportation-this type of add-on broadens the coverage you receive from your collision and comprehensive components of your policy by paying for a rental car while your car undergoes repairs.
• Towing and Labor-For a small premium, this type of add-on will help you pay for the cost of towing and labor should you need either after an accident.
• Classic Car Insurance-One of the cheapest add-ons available, this type of insurance will cover your classic, antique or collector vehicle should something happen to it while you are out showing it off.
• Non-Owner Car Insurance-This type of coverage is perfect for you if you don’t own a car but still drive on occasion. If you are borrowing your friend’s ride it will be nice to know that this type of policy will protect you with limited liability coverage for bodily injury and property damage.
• Modified Car Insurance-If you have a need to stand out from the norm then modifications to your car are a great way to do it. With this type of coverage, all of the additions to your lean machine will be covered should the unfortunate occur.

The type of car you drive is only one of the many factors that car insurance companies use to determine your rates.

Keep reading to find out how your age, your gender, and even where you live can make a major difference in the price that you pay for your policy.

Male Vs. Female Rates

No matter your age or gender you are most likely going to find yourself shopping for car insurance at some point in your life. The external factors such as age and gender that you see as a part of life can add up though when purchasing your policy.

One of the most common things that can impact your car insurance rates is gender.

In fact, Consumer Federation of America released a study in 2017 that revealed that women of a certain age are more likely to pay more for car insurance than men in the same age range.

According to their study:

Most large auto insurers charge 40 and 60-year-old women higher rates than men, often more than $100 a year.

This is shocking to a lot of people since common belief has always been that men, in general, pay more for car insurance at any age level.

Age and gender are just two of the things that go into determining your premiums. Take a look at the table below to see how your marital status can also impact your rates.

Looking at the table reveals that Massachusetts is pretty egalitarian when it comes to car insurance rates across age and gender.

This means that your age and gender are two less things to worry about as you shop around for the perfect car insurance policy in the Bay State.

While age and gender might not make that big of a difference in the rates that you pay for car insurance where you live could cost you plenty. Keep scrolling to find out how.

Cheapest Rate by Zip Code

When choosing the perfect house most people consider the neighborhood or the schools and shopping that are close by. Almost nobody thinks about how their zip code could affect their car insurance rates.

City life definitely has its perks! As you can see from the table above though, moving just a couple of miles away from the city center could save you a few bucks.

A good example of this can be seen by looking at the difference in insurance rates in the Boston area.

Looking at the data reveals that Roxbury is the most expensive place to live in the Boston Metro area. In contrast, residents of Roslindale, which is just 4.5 miles away, pay approximately $1,000 less annually for the same coverage.

The comparison between Roxbury and Roslindale makes it clear that where you live in a city matters when it comes to car insurance rates. The city you love could cost you more as well.

Keep scrolling to see how your city stacks up against others in the Bay State when it comes to the cost of car insurance.

Cheapest Rates by City

Massachusetts has some of the most historic and interesting cities in the country. From Concord to Salem, navigating the city streets can be quite the challenge though just like shopping for car insurance.

With a little information in your hands purchasing insurance can be as enjoyable as receiving free “Jimmies” on your ice cream.

Part of purchasing the right amount of coverage from a provider you can trust means knowing what the average rates in your city are. This is where we come in.

We’ve put all the data in one place for you so that you can see just where your city ranks when it comes to the cost of car insurance.

With a population density of 13,841 people per square mile, it is no wonder that Boston has some of the highest rates in the state for car insurance.

Siasconset with its population density of only 3,025 people per square mile in comparison boasts one of the lowest rates for car insurance in the Bay State.

Why such a vast difference? The answer is simple. More people means more cars on the road which translates into more accidents resulting in more insurance claims.

Should you ever need to file a claim it will be good to know where your car insurance company ranks among the others in the Bay State. That is where we come in.

Best Massachusetts Car Insurance Companies

If the unfortunate arises and you find yourself in need of filing a claim it can be a huge comfort to know that you have chosen the right car insurance provider to have in your corner.

We have compiled a list of the top rated car insurance company in the Bay State according to AM Best to help you feel more confident in your decision.

Largest Companies Finacial Ratings

AM Best is the only global credit rating agency to have a singular focus on the insurance industry. As such, you can trust that the rankings that they provide to you are not be influenced by industries outside of the market.

The rankings provided by AM Best can help you determine the overall health and viability of all of the insurance providers available to you which could save you money when shopping for car insurance.

As you can see, the insurance market in the Bay State is in pretty good condition overall. This is good news to you as a consumer because a healthy insurance market breeds competition which means that companies are vying for your business making them more likely to keep their rates as low as possible.

The higher the rating from AM Best the less likely it is that your car insurance company will go bankrupt either, and companies with higher ratings are also more likely to pay out your claim should you ever have an accident.

Companies with Best Ratings

AM Best ratings are a great place to start as you are trying to determine just which car insurance provider is right for you. AM Best is not the only one looking out for you though.

JD Power also has your back, and what they have discovered is that customer satisfaction among car insurance consumers is at an all-time high.

Purchasing car insurance in Massachusetts isn’t always a satisfying experience though. Scroll down to see just which car insurance company in the Bay State has the highest complaint ratio and what that means to your bottom line.

Companies with the Most Complaints

When choosing your car insurance provider you will want to consider how many complaints have been filed against them before making your purchase. This means knowing what the complaint ratio is and what it means to you.

The baseline for the complaint ratio is 1.0. A company with a 1.0 complaint ratio thus has an average number of complaints. Consequently, the more complaints a company has filed against it the higher its complaint ratio will be.

Below is a list of the top 10 best car insurance companies in Massachusetts along with their complaint ratio so that you can see how each one compares.

Taking the raw data and just looking at the complaint ratio could be deceiving.

In order to put the complaint ratio into context, you should consider the market share that each company has. Higher market shares mean that these companies service more customers.

Servicing more customers raises the possibility that eventually some customers might feel dissatisfied with their service and thereby complain.

This explains why Mapfre Insurance Group has such a high complaint ration given that it has $1,239,686 in Direct Premiums Written and thereby commands almost 25 percent of the total market share in the Bay State.

If you ever need to file a complaint against your insurance provider you should contact The Massachusetts Division of Insurance.

Here are a few of the ways that you can contact them:

• In person1000 Washington Street, Suite 810, Boston, MA 02118
• By Phone – At (617) 521-7794 or toll-free at (877) 563-4467
• Online– https://www.mass.gov/service-details/about-the-division-of-insurance

The Massachusetts Division of Insurance also offers the following options and advice when filing a complaint against your provider:

• Online – https://www.mass.gov/forms/doi-insurance-complaint-submission-form
• Through e-mailsimply fill out the complaint form and attach it to an e-mail addressed to CSSComplaints@mass.gov
• Snail Mailjust print out the complaint form and mailing it to: Commonwealth of Massachusetts Division of Insurance, Consumer Service Department, 1000 Washington Street, Boston, MA 02118-6200
• Or FAX your complaint form to (617) 753-6830

Now that you know how the loss ratio and complaint can help you determine what car insurance provider might be best for you it is time to start comparing rates.

Cheapest Companies in Massachusetts

Anyone who has ever shopped around knows that it is human nature to start from the lowest price and sort out your purchases from there. This is where we can help.

The table below puts you in control of choosing the best car insurance by showing you just how far your hard earned money can go when purchasing your car insurance policy.

Knowing just how mighty your dollar in on the car insurance market is a key component of making a financially responsible decision. Another key factor is understanding that there is more to what goes into determining your rates than what meets the eye.

Everything from your education level to your commuting distance can have an impact on how much you will pay for car insurance. Keep scrolling to find out how we can help.

Commute Rates by Company

Many residents of the Bay State don’t realize that the more they drive the higher their rates will be. This is why it is just as important to shop around for car insurance as it is for your next new car.

Comparing annual rates that Massachusetts car insurance providers charge their customers based on the miles that these customers travel each year can help you save big.

The table below makes sense of it all so that you can make the best decision for your family budget while keeping the ones you hold dear safe and protected when they travel in your car with you.

Looking at these numbers demonstrates how shorter commute rates translate into money saved on car insurance. Some of us don’t have a choice though when it comes to how much we drive each year.

If your commute is short and sweet then it might be best to go with a company like State Farm. If your commute is longer though you might want to consider choosing USAA.

Longer commute rates increase your chances for an accident. Because USAA has a relatively low loss ratio they will be more likely to pay out a claim in case you should be forced to file one.

Coverage Level Rates by Company

As you can tell, knowing which company is the cheapest in your area is only part of what goes into deciding on the perfect car insurance provider to protect you and your loved ones in case of an accident.

When making a smart decision you should also consider how much coverage you will need. The table below can help you get started.

As you can see, the more coverage you purchase the more you will pay for that coverage. That is not all there is to it though.

The age of your car might mean that you need more or less coverage.  Your credit can also impact how much you will pay for the coverage you need no matter how old you are or what type of car you drive.

Credit History Rates by Companies

Massachusetts is one of the few states that prohibits insurers from using your credit score to set your rates.