Massachusetts Auto Insurance: Coverage, Costs, Laws

Car insurance is required in almost every state, including Massachusetts. You could expect to pay an average of $484 per year if you choose the legal minimum coverage level in Massachusetts. This amount is 10% less expensive than the national average. Massachusetts law mandates automobile insurance, requiring four compulsory coverages: bodily injury to others, personal injury protection, uninsured motorist coverage, and property damage liability.

Summary

Is car insurance mandatory in Massachusetts?

YES, you need auto insurance in Massachusetts in order to register a vehicle; it’s compulsory.  You are required by law to buy four types of coverage, known as compulsory (or mandatory) coverage, which is the minimum amount required by law.

Compulsory Coverage 

There are four compulsory insurance coverages in Massachusetts:

1) Bodily Injury to Others: If you unintentionally hurt or kill anyone while driving your car, bodily injury to others shields you and the person you permit to drive it from liability.

• • Bodily Injury: $20,000 per person

• • Bodily injury: $40,000 per accident

2) Personal Injury Protection (also known as PIP), which pays for replacement services up to a maximum of $8,000 in medical costs and up to 75% of expenses.

3) Bodily Injury Caused by Uninsured Auto covers losses resulting from an uninsured or unidentified (“hit and run”) driver for you and anybody you allow to operate your vehicle, including household members and passengers (who are not protected by another similar Massachusetts insurance).

• • Bodily Injury: $20,000 per person

• • Bodily injury: $40,000 per accident

4) Property damage, commonly referred to as damage to someone else’s property, is insurance that covers accidental damage to someone else’s property caused by you, a household member, or another driver you allow to use your vehicle.

You have to buy a policy with a minimum limit of $5,000.

Optional Coverages:

1. Additional coverage for bodily injury to others

• • Bodily injury: $35,000 per person.

• • Bodily injury: $80,000 per accident.

2. Additional coverage for bodily injury caused by an underinsured vehicle If you have underinsured limits of $50,000.00 per person and you collect the at-fault party’s $20,000.00 per person bodily injury limit, the most you can collect from your underinsured coverage is $30,000.00.

3. Comprehensive and Collision coverage

4. Medical payments of at least $5,000.

Other Optional Coverages:

• • Coverage for alternating modes of transportation, such as a rental car, while your vehicle is being repaired following an accident, collision, or comprehensive claim.

• • Coverage for towing and labor in case your car breaks down.

• • Accident forgiveness.

• • Roadside assistance.

• • Auto loan/lease coverage, also known as gap insurance. If your car is totaled or stolen and your debt exceeds the car’s depreciated value, gap insurance helps in paying off your auto loan.

• • Pet coverage.

Who has the cheapest car Insurance
In Massachusetts?

Company	Avg Annual Minimum coverage	Avg. Annual Premium
State Farm	$196	$532
USSA	$396	$1,222
GEICO	$407	$1,065
Amica Mutual	$470	$1,514
Allstate	$610	$2,003
Progressive	$681	$1,578
Travelers	$687	$1,913

Cost Range:

The average annual minimum coverage costs vary significantly, ranging from $196 (State Farm) to $687 (Travelers)

For average annual premiums, Allstate charges the highest at $2,003, while State Farm remains the most affordable at $532.

State Farm’s average annual minimum coverage requirement is $491 lower than Travelers‘, which means that drivers who choose State Farm could save up to $491 per year on their minimum coverage requirements.

Allstate’s average annual premium is $1,471 higher than State Farm’s, meaning drivers who choose State Farm could save up to $1,471 per year on their average annual premium.

To Sumup the Table above

State Farm is the only company that offers an average annual minimum coverage requirement below $400.

USSA and GEICO have the next lowest average annual minimum coverage requirements, at $396 and $407 per year, respectively.

Amica Mutual, Allstate, Progressive, and Travelers all have average annual minimum coverage requirements of $470 or higher per year.

Allstate has the highest average annual premium, followed by Travelers and Progressive.

State Farm, USSA, and GEICO all have average annual premiums below $1,500 per year.

Car Insurance grace period.

State Farm provides a 10-day grace period for car insurance in Massachusetts.

State Farm provides a 14-day grace period for adding a new car to an existing policy. This means that existing customers have 14 days after buying or leasing a new car to officially add it to their insurance policy

USSA provides a 15-day grace period for car insurance in Massachusetts.

USSA auto insurance’s new car grace period is 30 days. This means that after buying or leasing a new car, current customers have 30 days to formally add it to their insurance policy and acquire any additional coverage it might need.

GEICO does not offer a grace period for car insurance nor provides for adding a new car to the policy. This means that if you do not renew your policy on time, it will expire immediately.

If your policy lapses, you will be uninsured for any accidents or damages that occur during that time period.

Amica Mutual provides a 10-day grace period for car insurance and a 10-day grace period for adding a new car to an existing policy in Massachusetts.

The grace period for Allstate car insurance payments in Massachusetts is 30 days. This means you have 30 days after the due date to make your payment before your policy is canceled.

Additionally, Allstate offers a grace period of 30 days for adding a new car to an existing policy in Massachusetts.

However, your coverage will lapse during this grace period, which means you will not be covered for any accidents or damages that occur during that time.

Progressive provides a 10-day grace period for car insurance in Massachusetts.

And Progressive also offers a 30-day grace period for adding a new car to an existing policy

Travelers do not provide a grace period for car insurance payments when adding a new car to the insurance policy in Massachusetts. This means that if you do not pay your premium on time, your policy will be canceled immediately.

Why is Massachusetts car Insurance so expensive?

Because of the higher cost of living in Massachusetts, medical care, auto repairs, and litigation costs are higher, and the state has more property damage and bodily injury claims per vehicle than nearly every other state.

There are several other factors that contribute to the high cost of car insurance in Massachusetts. These include:

• • High population density: With a population density of over 800 people per square mile, which means over 7 million residents. Massachusetts has a high population density, making it one of the most densely populated states in the USA. This means that there are more cars on the road, which increases the risk of an accident.

• • Mandatory uninsured motorist coverage: All drivers in Massachusetts are required to have uninsured motorist coverage (UMC). UMC protects drivers who are hit by an uninsured or underinsured motorist. This type of coverage is more expensive than traditional liability coverage, which contributes to Massachusetts’ high car insurance rates.

• • Required personal injury protection: Massachusetts also requires all drivers to carry personal injury protection (PIP) coverage, increasing overall insurance costs.

• • High cost of living: Massachusetts is a high-cost-of-living state, Insurance companies base premiums on the cost of living, so the higher the cost of living, the higher the premiums.

• • High rates of distracted driving: Massachusetts has one of the highest rates of bad or inexperienced drivers, which causes lots of accidents and insurance companies take this into account while calculating premiums for each state.

• • Higher rate of Litigation: Litigation is common in Massachusetts, which is one of the most litigated states in the country. This means that many lawsuits are filed following car accidents, increasing the cost of insurance for everyone.

Conclusion

In Massachusetts, car insurance is required by law, and there are four mandatory coverages.
The average annual cost for minimum coverage is $484, which is 10% less than the national average.
State Farm has the most affordable rates,
while factors such as high population density, mandatory coverages such as uninsured motorists and personal injury protection, and a higher cost of living contribute to overall higher insurance costs in Massachusetts.

Question for Massachusetts Residents
If you reside in Massachusetts, we’d love to hear from you! Do you have any personal tips or hacks that have helped you save on car insurance premiums in the state? Share your insights in the comments below!