Why is auto insurance so expensive in Massachusetts?
Massachusetts has some of the highest auto insurance costs in the country. Many factors contribute to these high costs. The state is densely-populated with the majority of its drivers living in urban areas where accidents are more likely to happen. In addition, Massachusetts’ higher cost of living means higher costs for medical care, auto repairs and litigation costs. The bottom line is that Massachusetts has more property damage and bodily injury claims per vehicle than nearly every other state. As the number of claims increases, so does the cost of insurance. When claims decrease, insurance rates decrease as well.
Massachusetts auto insurance costs are among the highest in the country, although rates have continued to decline over the past few years. Many factors contribute to the high cost of insurance here. Densely-populated areas with many cars see more accidents than rural areas. The higher cost of living in Massachusetts means higher costs for medical care, auto repairs and litigation. The bottom line is that Massachusetts has more property damage and bodily injury claims per vehicle than most other states. As the number of claims increases, so to does the cost of insurance.
