2017‑2018 Premium Change in Massachusetts
According to the Massachusetts Division of Insurance, the average annual auto insurance premium rose from $1,328 in 2017 to $1,432 in 2018, a 7.8% increase. This jump outpaced the national average of roughly 5% for the same period and reflected a combination of higher claim costs, statewide regulatory adjustments, and shifting driver risk profiles.
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Key Drivers Behind the Increase
Three primary forces pushed Massachusetts rates upward:
- Rising bodily‑injury claims: The state's no‑fault law and higher medical expense awards inflated loss costs.
- Weather‑related damage: Increased frequency of winter storms led to more comprehensive claims for collision and glass repair.
- Regulatory fees: Adjustments to the state's insurance surplus lines tax added roughly 0.4% to carrier expenses, which carriers passed on to consumers.
Comparison with Neighboring States
| State | 2017 Avg. Premium | 2018 Avg. Premium | Percent Change |
|---|---|---|---|
| Massachusetts | $1,328 | $1,432 | 7.8% |
| Connecticut | $1,254 | $1,332 | 6.2% |
| New Hampshire | $1,180 | $1,240 | 5.1% |
Impact on Different Driver Segments
While the overall average rose 7.8%, the effect varied:
- Young drivers (16‑24): Premiums increased about 10% due to higher crash frequencies.
- Clean‑record drivers: Saw a modest 5% rise as insurers rewarded low‑risk profiles.
- High‑risk drivers: Experienced up to a 12% jump, reflecting greater exposure to costly claims.
What Drivers Can Do Now
To mitigate ongoing cost pressure, Massachusetts motorists should consider:
- Shopping quotes annually and leveraging online comparison tools.
- Bundling auto with home or renters insurance for multi‑policy discounts.
- Maintaining a good credit score, which insurers still use in premium calculations.
- Exploring usage‑based insurance programs that reward low mileage and safe driving habits.