Part of a series of articles on the NAIC”s recently published 2022/2023 Auto Insurance Database Report
The National Association of Insurance Commissioners (NAIC) has released its 2022/2023 Auto Insurance Database Report, providing updated data on premiums, expenditures, and claim experience across the country. The report compiles premium and exposure data from statistical agents and state insurance systems to help regulators, insurers, and policymakers analyze trends in the personal automobile insurance marketplace.
One of the most useful comparisons in the report for Massachusetts insurance professionals is how the Commonwealth’s liability premiums compare with the national average and those of neighboring New England states.
U.S. Auto Insurance Premiums Rise Sharply in 2023
The combined average premium per insured vehicle nationwide reached $1,438 in 2023, representing a 14.42% increase from 2022, according to the National Association of Insurance Commissioners’ (NAIC) latest Auto Insurance Database Report. The combined average premium reflects the total cost of a policy, including liability, collision, and comprehensive coverages, and is a commonly used benchmark for comparing overall auto insurance costs across states.
Massachusetts Premiums Increase, But Still Fall Below National Average
Massachusetts reported a combined average premium of $1,413.49 in 2023, up from $1,256.62 in 2022, reflecting a trend similar to the national marketplace.
| Year | Massachusetts Combined Average Premium |
|---|---|
| 2023 | $1,413.49 |
| 2022 | $1,256.62 |
| 2021 | $1,254.88 |
| 2020 | $1,248.44 |
| 2019 | $1,261.84 |
From 2019 through 2022, Massachusetts premiums remained relatively stable in a narrow range around $1,250 before increasing materially in 2023. Despite the increase, the Commonwealth’s premium remains slightly below the national average of $1,438.
New England States Show a Wide Premium Range
Across New England, the NAIC data show a clear spread in combined average premiums, with southern New England states generally reporting higher premiums than northern states.
Rhode Island and Connecticut report the highest premiums in the region, both well above the national average. Massachusetts falls in the middle of the regional range, while Maine, Vermont, and New Hampshire report significantly lower premiums.
Rhode Island
Rhode Island reported the highest combined average premium in New England at $1,709.69 in 2023, placing it well above both the regional and national averages. The data show a continued upward trajectory from $1,577.02 in 2022, following relatively stable results in prior years. Rhode Island’s position at the top of the regional range reflects its status as a predominantly urban state, where higher traffic density and related loss costs tend to influence premium levels.
Connecticut
Connecticut recorded a combined average premium of $1,508.21 in 2023, the second-highest in New England and above the national average. The increase from $1,377.39 in 2022 continues a steady upward trend over the five-year period. As with Rhode Island, Connecticut’s higher premium levels align with factors typically associated with more urbanized and densely populated markets.
Massachusetts
Massachusetts reported a combined average premium of $1,413.49 in 2023, slightly below the national average of $1,438. The Commonwealth’s premium increased from $1,256.62 in 2022, marking the most significant change in the five-year period after several years of relative stability. Massachusetts sits in the middle of the New England range, reflecting a balance between urban exposure and the regulatory framework that shapes its auto insurance market.
New Hampshire
New Hampshire posted a combined average premium of $1,032.01 in 2023, well below both the national and New England averages. The increase from $921.80 in 2022 follows a consistent upward trend over the past several years, though overall premium levels remain significantly lower than those in southern New England.
Vermont
Vermont reported a combined average premium of $957.80 in 2023, placing it among the lowest-cost markets in the region. The premium increased from $854.38 in 2022, continuing a gradual upward trend. Despite the increase, Vermont remains well below the national average, consistent with its lower population density and differing market characteristics.
Maine
Maine recorded the lowest combined average premium in New England at $926.02 in 2023. This represents an increase from $831.22 in 2022, but overall premiums remain substantially below both regional and national levels. Maine’s position at the bottom of the regional ranking reflects its comparatively lower-cost market conditions over the five-year period.
Ranking of New England States by Premium
Based on 2023 combined average premiums, the New England states rank as follows:
- Rhode Island – $1,709.69
- Connecticut – $1,508.21
- Massachusetts – $1,413.49
- New Hampshire – $1,032.01
- Vermont – $957.80
- Maine – $926.02
This ranking highlights a clear regional divide, with higher-cost markets concentrated in more densely populated states.
NAIC: Interstate Comparisons Require Caution
The NAIC cautions that comparisons of premiums between states should be interpreted carefully.
Differences in premiums reflect a wide range of underlying factors, including:
- types and amounts of coverage purchased
- underwriting and loss adjustment expenses
- traffic density and accident rates
- vehicle repair and medical costs
- state insurance laws and tort systems
- demographic and economic conditions
As the NAIC notes, auto insurance premiums ultimately reflect “a complex set of state-specific factors related to the insurers’ claims costs,” and the data do not represent identical coverage or risk exposures across states.
