Massachusetts Car Insurance

Before you buy car insurance in Massachusetts, you should learn about minimum MA car insurance requirements and why more coverage may be a better choice for some drivers. We provide average car insurance rates for your location so you can compare quotes and also outline Massachusetts auto insurance laws.

The average car insurance rate in Massachusetts is $1,191 a year. The severity and frequency of claims in your neighborhood, your driving record, the type of car you drive and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates. For example, in Boston area ZIP code 02121 the highest rate among six carriers ($3,477) is over $2,000 more than the lowest ($950). When shopping for car insurance, use our average car insurance rates tool to compare rates. Enter a ZIP code to see the average premium for your neighborhood. You will also see the highest and lowest rates from the six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area. For a customized rate, choose among six age groups and three coverage levels.

Cheap car insurance in Massachusetts

Massachusetts car insurance requirements

Your state's minimum car insurance requirements will be the cheapest coverage you can get. Massachusetts laws mandate that drivers carry minimum liability coverage limits of 20/40/5 on their vehicle. You must also have matching amounts of uninsured/underinsured coverage, and personal injury protection (PIP) limits of $8,000. In Massachusetts, PIP pays for the first $2,000 of your medical expenses, then your health insurance kicks in. If you don't have health insurance, PIP pays out up to the limits you bought, which must be at least $8,000.

Buying the state required limits to drive is definitely the cheapest way to go. Everyone likes to save money, but buying cheap car insurance in MA may not be the wisest option for many drivers. Your assets and savings are in jeopardy if you get into an accident and only have minimum coverage.

It does cost more to buy more protection, but as you’ll see in the chart below, additional coverage is typically affordable. Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $652 more, or $54 a month.

*The table shows the average annual rate of nearly every ZIP code in Massachusetts from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.

Recommended car insurance coverage

Buying cheap car insurance in MA may not be the wisest option for many drivers. This is because even a minor wreck can cost much more than what your minimal insurance will pay out. For instance, say you have Massachusetts’ minimum bodily injury of $20,000 and $5,000 in property damage. You then cause an accident that totals the other driver’s car, valued at $20,000. It also results in $45,000 of medical expenses for the other driver’s injuries. You’re responsible for damages not covered by insurance. That means you have to pay $25,000 for medical bills and $15,000 for the damaged car – a total of $40,000.

Car insurance companies by market share in Massachusetts

Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.

Massachusetts car insurance laws and resources

Proof of insurance and registering your car in Massachusetts

There are no car insurance cards issued in Massachusetts because your registration acts as proof of your policy. That means your car insurance company is part of the registration process. When you register a car for the first time, your car insurer begins by filling out, stamping and signing a form. This form is called the Application for Registration and Title (RMV-1). Once completed, your insurer sends it to the Massachusetts Registry of Motor Vehicles (RMV).

MA Safe Driver Insurance Plan (SDIP)

Massachusetts does not have a driver’s license points system. Instead, driving behavior is tracked with the point-based Safe Driver Insurance Plan (SDIP). The goal of SDIP is to reward safe drivers with low car insurance rates and to penalize those with at-fault accidents and traffic violations with higher rates.

Not every insurance company uses SDIP when determining car insurance rates. Massachusetts car insurance companies have the option of using the SDIP driver rating system or can use their own merit-rating system to set rates. All insurance companies are required under law to explain how discounts or increases to rates were made when applying merit-ratings to your policy. This is true regardless of whether the insurer uses SDIP or its own merit-rating system and can be found on the “Coverage Selection” page of your policy.

Here we explain how SDIP works for those who have insurers that use it to set rates. Your driving history is used to create your SDIP rating. You are given “surcharge” points for unsafe driving, but may get a discount if you are a safe driver. For instance, new drivers are automatically assessed higher premiums because they have no driving experience yet. Additionally, you will receive surcharge points for car accidents or traffic violations. On the other hand, experienced drivers with clean records are given discounts. SDIP discounts and increases count toward your liability and optional collision coverage.

The more surcharge points you have, the higher your car insurance rate will be. Surcharge points might be imposed if:

• Your insurer deems you more than 50 percent at fault in an accident
• Your insurer pays out more than $500 on an accident claim you file
• You are convicted of a traffic violation
• Pay a fine for a traffic violation
• You are convicted of a DUI and required to take an alcohol education program

For more information, read the RMV page SDIP and Your Auto Insurance Policy. The MA RMV also provides a detailed outline of surchargeable incidents. If you have questions about SDIP, call  a  customer service representative at the merit rating board by calling 857-368-8100.

SDIP MA car insurance discounts

You may be able to save money on your MA car insurance with the following discounts if your insurer uses the SDIP system and you’re a safe driver:

• Excellent Driver Discount Plus -- To qualify for this 17 percent discount, you must have six years of driving experience and no surcharges in the past six years.
• Excellent Driver Discount -- To qualify for this 7 percent discount, you must have at least five years of driving experience with no surcharges in the past five years.
• Excellent Driver Discount with one incident -- To qualify for this 7 percent discount, you must have at least five years of driving experience and only one surcharge for a minor traffic violation in the past six years that is at least three years old.

How much does a speeding ticket raise your rates?

If you get cited for speeding, your rates will go up 27 percent, on average, per year, according to an analysis of rates from six insurers for 10 ZIP codes in the commonwealth.

Credit and gender not a rating factor

Car insurance companies in Massachusetts are not allowed to factor in your credit information or gender when calculating your rates. Most states allow the practice.

Lemon and Lemon Aid laws

Massachusetts, like many states, has a Lemon Law regarding defects that consumers may find with their new or leased vehicles; however, it also has a unique Lemon Aid law.

The Lemon Aid law allows you to cancel or void a car sale or contract if your vehicle fails to pass inspection within seven days from the date of sale and the estimated repair costs of emissions or safety-related defects exceed 10 percent of the purchase price. This applies to dealer and private party sales of cars and motorcycles acquired for personal use.

Uninsured motorist penalties for Massachusetts

You may be fined $500, be sentenced to one year in jail and have your license suspended if convicted of driving without insurance.

Uninsured motorist bodily injury coverage is required in the state even though Massachusetts has the lowest uninsured motorist rate in the nation at 4 percent, according to the Insurance Research Council. For comparison, Oklahoma has the most uninsured drivers at 26 percent.