What factors determine car insurance rates in the Commonwealth
In a recent study, the on-line consumer information site NerdWallet took a look at car insurance rates in Massachusetts. More specifically, it focused on the towns and cities with the most and least expensive rates and what factors go into those rates.
While no surprise to agents and insurance professionals in the Commonwealth, NerdWallet found that in addition to an insured’s personal driving record, the mileage of the vehicle to be insured and the years of driving experience an insured has, the two most influential factors in determining car insurance rates in the Bay State is location and population density. Based on those qualifications, it should come as no surprise that drivers in Suffolk County pay the highest auto insurance rates in Massachusetts drivers.
On average, however, NerdWallet says the median amount a Massachusetts driver spends on car insurance is $1,118.58 a year, which is only slightly higher than the national car insurance average of $1,099.71. After discussing the various factors that could affect a Massachusetts insured’s rates, NerdWallet then composed the following list of Massachusetts cities and towns with the most and least expensive insurance rates.
How the rates were determined
NerdWallet retrieved quotes for two different driver profiles as outlined in an excerpt from the report below:
To determine the average insurance premium increases, we retrieved quotes for two different driver profiles in Massachusetts locations with populations over 6,000: 27-year-old and 40-year-old men and women each driving a Toyota Camry and a Ford Escape. The 27-year-old profiles have a driver’s personal liability coverage limit of 30/60/10 and uninsured motorist coverage for the same amount. The 40-year-old profiles have a liability coverage limit of 100/300/100 and uninsured motorist coverage for the same amount. Both profiles have personal injury protection of $8,000 per person in an accident. All profiles have a comprehensive and collision deductible of $500.
The following lists the cities and towns with the least expensive car insurance rates in Massachusetts
3. West Concord
16. North Adams
And the most expensive places to insurance a car in the Commonwealth…
14. New Bedford
16. Fall River