Cheap Car Insurance Companies In Massachusetts

The average semiannual cost of car insurance in the state of Massachusetts is $657.33. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Massachusetts across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 2/29/2024

The Massachusetts car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in MA. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Massachusetts Minimum Liability Coverage

Massachusetts has minimum liability insurance requirements that all drivers must meet to legally drive on public roadways. These minimum requirements are designed to ensure drivers carry enough coverage to compensate other parties for injuries, damages, and losses in the event of an at-fault accident.

The Massachusetts minimum liability insurance coverage includes:

$20,000 for bodily injury per person

This covers medical bills and compensation for pain and suffering for injuries sustained by one person in an accident.

$40,000 for bodily injury per accident

This covers the total injuries sustained by all persons injured in a single accident.

$5,000 for property damage per accident

This covers damages to other vehicles and property resulting from an accident.

In addition to these state minimum requirements, Massachusetts drivers are required to have Personal Injury Protection (PIP) coverage of at least $8,000. This covers medical bills and some lost wages for the policyholder and passengers in the insured vehicle, regardless of fault in an accident.

Penalties for Driving Without Insurance in Massachusetts

Massachusetts law requires all drivers to carry minimum motor vehicle liability insurance. Individuals who fail to comply face significant penalties if caught driving without insurance.

The primary penalty for driving without insurance in Massachusetts is license suspension. Upon conviction, the Registry of Motor Vehicles will suspend the violator’s driver’s license. For a first offense, the suspension is 60 days. For second and subsequent offenses within a three-year period, the suspension is six months.

In addition to license suspension, individuals convicted of driving without insurance also face significant fines. For a first offense, the fine is $500. For second and subsequent offenses, the fine increases to $1,000.

Courts may also impose other penalties in addition to license suspension and fines. These can include court fees and costs, probation, community service, and driver retraining courses. In some cases, violators may be required to prove they have obtained insurance before their license suspension is lifted.

Individuals caught driving without insurance should act quickly. The sooner insurance is obtained, the stronger a defense against license suspension. However, individuals should be aware that license suspensions for this offense cannot typically be avoided. Individuals should obtain insurance immediately to avoid accruing additional penalties and fees.

Auto Insurance Rates in Massachusetts

Massachusetts auto insurance rates are among the highest in the country. The average annual premium in the state is $1,113, nearly twice the national average of $935. Several factors contribute to these high costs.

One reason is the high cost of medical care in Massachusetts. The state has some of the nation’s most expensive hospitals and health systems. When accidents occur, medical bills tend to be higher, increasing the payouts insurance companies must make.

Another factor is the state’s no-fault insurance system. Under no-fault, drivers file insurance claims with their own insurance company regardless of fault. This requires insurance companies to pay more claims, raising costs. Some argue the no-fault system encourages more insurance fraud and unnecessary medical treatments.

Massachusetts also has stringent insurance regulations that require policies to provide more extensive coverage. For example, policies must include personal injury protection of at least $8,000 and uninsured motorist coverage. While these regulations offer drivers more protection, they also increase the cost of policies.

Insurers say high rates of uninsured drivers in Massachusetts also contribute to higher costs. When uninsured drivers cause accidents, insurance companies foot the bill for damages. Insurers estimate about 7% of Massachusetts drivers are uninsured.

Low Cost Car Insurance Programs and Discounts in Massachusetts

Car insurance is required by law in Massachusetts, but that doesn’t mean premiums can’t be affordable. There are several ways to save money on your car insurance in the Bay State.

Some insurance companies offer low-income programs for qualifying customers. These programs provide minimum coverage at reduced rates to make insurance accessible. Requirements vary by company but typically include income thresholds and proof of eligibility. These programs can save eligible customers hundreds of dollars per year on their premiums.

Multiple discounts are also available from many insurers. The most common discounts include:

• Good student discount. Available for full-time students under 25 with a B average or higher.
• Multi-policy discount. Bundling home and auto insurance with the same company typically saves 5% to 15%.
• Multi-vehicle discount. Insuring more than one vehicle with the same company saves 5% to 20%.
• Defensive driving course completion. Taking an approved safe driving course can lower rates by up to 10%.
• Anti-theft devices. Having an alarm, immobilizer or other approved security system can save 5% to 10%.
• Low annual mileage. Driving fewer than 8,000 to 10,000 miles a year often qualifies for a discount of up to 20%.
• Good driver discount. Maintaining a clean driving record for several years without at-fault claims saves 5% to 15%.

Quotes can vary significantly between insurers based on their underwriting models and target markets. Use online quote tools to quickly compare rates from the major carriers in Massachusetts.

With a combination of low-income programs, available discounts and rate comparisons, many drivers can find affordable car insurance options that meet their budget and coverage needs.

Massachusetts Car Insurance Statistics

Massachusetts has a unique car insurance system that differs from most other states. Here are some key Massachusetts car insurance statistics to keep in mind:

• Massachusetts has the highest average annual car insurance premiums in the country at $1,505 per year, nearly 50% higher than the national average of $1,004.
• Massachusetts requires drivers to purchase two types of coverage: bodily injury liability insurance and property damage liability insurance. Optional coverages like collision, comprehensive and uninsured motorist coverage are not mandated.
• The state operates an at-fault insurance system. This means insurance rates are based primarily on a driver’s history of traffic violations, accidents and insurance claims.
• Massachusetts has a high-risk insurance pool called the Massachusetts Automobile Insurance Plan (MAIP). Drivers who are considered high-risk and cannot obtain insurance in the standard market are assigned to carriers through MAIP.
• Over 20% of Massachusetts drivers obtain their insurance through MAIP, contributing to the state’s high average insurance rates.
• Massachusetts has strict penalties for uninsured drivers, including license suspension, vehicle registration revocation and fines up to $500. This helps keep the state’s uninsured motorist rate below 3%, lower than the national average of around 8%.

The 10 Largest Massachusetts Car Insurance Companies

Massachusetts has one of the highest car insurance rates in the country, making it important for drivers to find the best coverage at the most affordable cost. Here are the ten largest car insurance companies in Massachusetts based on market share:

1. Progressive – Progressive is the largest car insurance company in Massachusetts, insuring over 15% of drivers in the state. Progressive is known for its flexible policies, wide range of discounts, and claims ease.
2. Liberty Mutual – Liberty Mutual is the second largest insurer in Massachusetts, insuring over 13% of drivers. Liberty Mutual is a major carrier that offers competitive rates and a variety of coverage options.
3. Allstate – Allstate insures over 11% of Massachusetts drivers, making it the third largest auto insurer in the state. Allstate is a well-known national insurance company that provides standard coverage options.
4. Arbella Insurance – Arbella is a Massachusetts-based insurance company that insures over 9% of drivers in the state. Arbella is known for offering competitive rates to Massachusetts drivers.
5. State Farm – State Farm insures over 8% of Massachusetts drivers, ranking as the fifth largest auto insurer. State Farm is a major national carrier that offers standard insurance coverage.
6. Hanover Insurance – Hanover Insurance is a Massachusetts-based insurance company that insures over 6% of drivers in the state. Hanover is known for offering specialized coverage options and competitive rates.
7. USAA – USAA is an insurance company that primarily serves military members and their families. In Massachusetts, USAA insures over 5% of drivers. USAA is known for offering some of the most affordable rates.
8. Mercury Insurance – Mercury Insurance is a relatively unknown national insurer that insures over 4% of Massachusetts drivers. Mercury offers standard coverage options.
9. MetLife Auto & Home – MetLife Auto & Home insures over 3% of Massachusetts drivers, ranking as the ninth largest auto insurer. MetLife offers standard coverage options.
10. Plymouth Rock Assurance – Plymouth Rock is a Massachusetts-based insurance company that insures over 2% of drivers in the state. Plymouth Rock is known for offering coverage tailored to Massachusetts drivers.​