Massachusetts Auto Insurance Requirements
Massachusetts has broad auto insurance requirements and laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Massachusetts are mandated by state law and the Massachusetts Division of Insurance. The following minimum coverage is required on every registered vehicle, except as noted below:
(Source: Massachusetts Office of the Attorney General)
Driving without the mandatory liability insurance in Massachusetts will result in a $500 fine and suspension of driving privileges, with reinstatement fees and license points. Subsequent offenses are subject to higher fines, reinstatement fees, and jail time.
The Massachusetts Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the Massachusetts Consumer Affairs website.
Alternatively, drivers not wishing to carry basic liability insurance in Massachusetts may deposit cash or securities or execute a surety bond with the State Treasurer in an amount equal to mandatory liability coverage requirements, who will issue a certificate of financial responsibility in lieu of an insurance card.
Factors Influencing Car Insurance Premiums in Massachusetts
Getting a quote for cheap car insurance in Massachusetts requires some research and rate comparisons between different insurance companies, even though Massachusetts ranks below national averages for car insurance costs. Some factors that impact insurance rates in Massachusetts include:
• Location – insurance rates are much cheaper in the Western part of the state, rather than the heavily populated eastern half of the state
• Massachusetts is not a “no-fault” state, but does require PIP insurance
• Vehicle repair costs are generally more expensive in Massachusetts than elsewhere
• Overall accident fatality rates in Michigan are the lowest in the nation
• A higher percentage of uninsured drivers compared to national averages
• Higher instance of auto insurance fraud
• Vehicle theft rates near national averages
The average auto insurance premium for residents in Massachusetts is $1,328 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Massachusetts
• If you’re over 55, take a state-approved defensive driving course for a policy discount
• Several insurance companies offer “pay as you drive” car insurance for low mileage drivers in Massachusetts – the state has an excellent mass transit system for daily commuters
• Maintain a good driving record
• Bind multiple policies (homeowners, life, auto) with the same provider
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Massachusetts Statistics
• Auto Theft: Massachusetts has a vehicle theft rate somewhat lower than national averages, and it has decreased significantly over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:
(Source: Auto Thiefs)
• Automobile Accidents: The total vehicle miles traveled in Massachusetts has remained consistent in recent years, and vehicle accident fatality rates have been the lowest in the nation for the past three years running despite having a fairly high population concentration.
(Source: National Highway Traffic Safety Administration)
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