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Feel like your auto insurance is expensive? MA car insurance some of the priciest in US
Feel like your auto insurance is expensive? MA car insurance some of the priciest in US
Feel like your auto insurance is expensive? MA car insurance some of the priciest in US

Published on: 05/29/2024

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Report: Car insurance rates up by 26%
A new report from Bankrate show car insurance premiums have jumped about 26% over the last year.

Massachusetts is notorious for its drivers, earning the name "Massholes." What was until now just a dubious reputation has become codified in the most indelible of institutions, however.

Car insurance. After all, the numbers don't lie.

The Bay State has been identified as having the 10th highest annual car insurance costs in the country, according to new research released by MarketWatch Guides. Annual costs statewide came to an average of $873, alongside an 8.8% rate of uninsured drivers.

Over the course of their research, MarketWatch analyzed the percentage of uninsured drivers, the average minimum-liability car insurance costs and the laws and the potential consequences for uninsured drivers in each state.

A major contributor is that Massachusetts is a no-fault state, according to WalletHub. This means no matter who causes the accident, Personal Injury Protection insurance cover a large portion of the medical expenses for you or anyone you let drive your car, anyone living in your household, passengers in your vehicle and pedestrians.

This raises costs for insurance providers, and as the cost of providing insurance goes up, the premiums insurers charge correspondingly rises, which in turn means more people will drive uninsured, choosing to take the risk of no coverage rather than pay the premiums. The cost of uninsured drivers is then passed on to consumers through higher premiums, in a self-perpetuating cycle.

It isn't all on drivers or state law, however. Some of it is just New England's temperamental weather. As the state experiences more severe weather events like storms, blizzards and tropical cyclones, car insurers have to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.

While Michigan took the top spot at an average of $1,604 in annual car insurance costs, New England was still represented in the top three, with Connecticut as a close runner-up.

The Constitution State's average was barely over $100 less at $1,503 per year, with a 10.4% rate of uninsured drivers.

RankStateAverage Annual CostRate of Uninsured Drivers
1Michigan$1,60419.6%
2Connecticut$1,50310.4%
3New York$1,47210.8%
4Florida$1,34315.9%
5New Jersey$1,03210.9%
6Nevada$1,0158.8%
7Maryland$97215.1%
8Delaware$94118.1%
9Louisiana$93213.7%
10Massachusetts$8738.8%
Data from MarketWatch Guides

News Source : https://www.telegram.com/story/news/2024/05/28/massachusetts-car-auto-insurance-expensive/73834443007/

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