There are various factors that impact the price of car insurance; some more so than others. Massachusetts drivers must have at least minimum car coverage; what kind and how much of that coverage you choose can have an effectful influence on rates. MoneyGeek conducted extensive studies on how companies calculate premiums to help drivers understand which influences most strongly impact them in Massachusetts. Here are some key components which will impact this expense.
Insurance companies will charge different amounts for similar coverage depending on their own risk assessment of drivers, with Geico offering rates 40% lower than the state average and offering superior customer service and optional coverages that go beyond pricing alone. The state average annual premium rate for a driver with a clean driving record in California is currently at $1,399. Geico stands out with their low prices; their annual rates for drivers with no accidents total $1,399. Additionally, customer service and optional coverages should also be taken into consideration as you compare insurance companies that provide similar policies across their various offerings – pricing can differ significantly between insurers so do your research to find your ideal insurer before purchasing coverage – Geico has significantly lower than its state average annual premium rate; plus they offer over 40% lower customer service with over 40% lower customer service and optional coverages offered that might just fit what you need!
Age and coverage level selection will have a direct influence on your car insurance premium. For instance, adding a teenage driver could cause rates to jump by as much as 2.7x due to insurers viewing them as higher risk drivers. Furthermore, upgrading from state minimum coverage levels to full comprehensive and collision policies could further raise premiums.
Location can also have an enormous effect on your car insurance rates. State insurers place considerable weight on ZIP code when calculating rates; thus drivers in urban areas typically pay more than those living in rural areas. Furthermore, your number of miles driven can have an effect as insurers assess risk based on driving behavior.
Your marital status will also have an effect on your rates, with married drivers typically paying less in Massachusetts than single drivers; Safety Insurance offers married drivers their cheapest coverage with an annual premium rate of $1049.
Massachusetts auto insurers had previously been required to report all at-fault accidents and traffic violations to a state agency known as the Motor Vehicle Rating Board (MRB), however starting in 2018 this will change to a merit rating system where auto insurers can establish their own rules regarding surcharges on premiums.
Outside of any changes to the merit rating system, most Massachusetts motorists will still enjoy similar coverage options as before. These include mandatory liability and uninsured motorist policies as well as personal injury protection (PIP) coverage for medical costs, lost wages and death benefits regardless of who caused an accident. To maximize savings on car insurance premiums in Massachusetts, motorists are encouraged to shop around and take advantage of any discounts or additional coverages available – doing this will help them find coverage with appropriate terms at an economical price point.