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22.3% increase in auto insurance costs in Massachusetts between 1989 and 2010, lower than national average

Back in 1989, the average auto insurance expenditure in Massachusetts was $728.39 when the national average was $551.95. As of 2010, the average figure for Massachusetts stood at $890.83 representing an increase of 22.3 percent over the 21 years. In the same time the national average went up to $791.22, a rise of 43.3 percent. As of 2010, it is still more expensive to buy auto insurance, on average, in Massachusetts compared to the national average. However the gap has closed.

Massachusetts went from being ranked the 5th most expensive state in terms of auto insurance expenditure in 1989 to occupying the 12th rank in 2010. Despite this improvement Massachusetts is not a very competitive state when it comes to auto insurance. The National Association of Insurance Commissioners gave Massachusetts a Herfindahl-Hirschman Index (HHI) score of 1260 (the Department of Justice considers any score under 1000 as competitive and scores above 1000 are considered moderately competitive). That’s the sixth worst score in the country.

A November 2013 study released by the Consumer Federation of America found that states that had stringent auto insurance regulation in place had the most success in keeping insurance rates low. Moreover, these states achieved lower rate increases without adversely affecting profit margins for insurers. One of the key features of better regulation is a Prior Approval (PA) system which requires insurers to file rates and obtain approval before they can be used in the market. The study found this to be one of the most effective ways to keep costs low for consumers. In contrast, Massachusetts has a File and Use (F&U) which requires insurers to file rates without any requirement for approval.

Auto insurance expenditure in Massachusetts has traditionally been more expensive than the national average. Instituting better regulation will see consumers reap the benefits of lower rates.

Massachusetts Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Massachusetts, MA.

Lowest Rate:$800
Average Rate:$1,600
Highest Rate:$1,800

Recent Savings From Top Providers in Massachusetts

Rank Customer Zipcode Amount Saved
1 1005 $313
2 1001 $306
3 1002 $304
4 1005 $302

Compare Auto Insurance Companies in Massachusetts

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
Commerce A 1972
Arbella A- 1988
Liberty Mutual A 1912

Massachusetts Auto Insurance Requirements

Minimum limits of liability for auto insurance in Massachusetts as per MA State Laws

Bodily Injury Liability

  • $20,000 for death/injury of any one person, per accident.
  • $40,000 for all persons per accident.

Property Damage Liability

  • $5,000 per accident.

Massachusetts Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Massachusetts is the vehicle's make and model. Especially the vehicle's theft rates in Massachusetts

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

Related Links for Auto Insurance Alabama

  • Avg Rates in Massachusetts's Top Cities

Write Your Review & Save Money

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Latest Auto Insurance Reviews in Massachusetts

GEICO

$412 for 6 Months

I would rate my insurance provider up there with the best. I am currently 35 years old with 2001 Nissan Maxima. I shopped arond and Geico was the cheapest for the same amount of coverge. They are very easy to contact if I need any help. Their online website is also great. I can log on and print insurance cards, view or update my policy, and pay my bill right online. They also send out reminders week ahead of time when my bill is due. One last thing is I love their smartphone app that lets me store my insurance cards right on my phone.

Progressive

$50 for 1 Month

My car insurance is a basic package package including Bodily Injury & Property Damage Liability as well as a protection in case i got hit by someone who doesn't have insurance, or doesn't have enough insurance. I also have roadside assistance. I chose progressive as my first insurer when i decided to buy my own car. I like that they allow me to personalized my insurance with the time but also they are very responding So far i never had to use it, never had a single accident. I am insuring a Mazda 2 from 2012. I am a 25 year old, working male and single. I am driving everyday to work , approximately 45 min/day.

Commerce , mike gilcoine

$985 for 12 Months

I have been using Commerce insurance to insure my car for over 14 years now. They offer me the best price and that is why I moved to them. The customer service is also excellent and another reason I switched. I am a 34 year old male and insure a 2008 Ford Mustang. I have several discounts like AAA and low mileage. I do not drive as much as the average user because I take the T to work so I drive about 6500 miles a year. I like the company so much that I use them for home insurance as well.