Massachusetts Auto Insurance

The state of Massachusetts requires all insurance companies to offer uninsured and underinsured motorist insurance to all their policy holders.  Uninsured and underinsured coverage provides protections against drivers who do not carry the mandatory liability auto insurance demanded by the state.  Underinsured and uninsured coverage is not mandatory in the state of Massachusetts but it is recommended.  If you decide to forego this option, the insurance company is required to provide a signed declaration page stating that you chose not to take the underinsured and uninsured coverage.

All eligible drivers in a household must be covered under a liability auto insurance policy. This includes anyone who may drive your car including individuals living in your home who have their own insurance policies.  They should be listed as “deferred operators.”  Listing them on your policy will not increase your premiums but if you do not list them as a “customary operator” and they are involved in an accident with your vehicle, the insurance company will not be obligated to pay the claim.  The insurance company may refuse to pay if they are present in the vehicle when you get in an accident.  To exclude individuals who do not drive your car, you will be required to fill out an exclusion form for the insurance company.  Teenage drivers with Learner’s Permits are not required to be listed until they obtain their full license. 

Massachusetts insurance companies can use your credit history to accept applicants and set insurance rates.  They may also use your credit score to determine your risk factors however many other factors are used to determine your rates such as the age of the drivers on the policy, the car you drive, your driving record, where you live and your marital status.  Since Massachusetts is a No Fault state, the insurance company is obligated to pay for your injuries even if you are not at fault.  For this reason, insurance companies advise policy holders to buy more than the minimum liability auto insurance.  The average insurance premium in Massachusetts as of 2006 is approximately $1,042.00 and the state is ranked as the 6th most expensive for insurance premiums in the nation.

There are 30 officially accepted insurance companies listed in Massachusetts.  They include Allstate Insurance Company, American Automobile Insurance Company (Fireman’s Fund), American International Insurance Company (AIG), Amica Mutual Insurance Company, Arbella Mutual Insurance Company, Citizens Insurance Company or America (Hanover), Commerce Insurance Company, Electric Insurance Company, Encompass Insurance Company of Massachusetts, Farm Family Casualty Insurance Company, GEICO, Harleysville Insurance Company, IDS Property Casualty Insurance Company (Ameriprise), Liberty Mutual Insurance Company, Massachusetts Homeland Insurance Company, Metropolitan Property and Casualty Insurance Company, NGM Insurance Company, Norfolk & Dedham Mutual Fire Insurance Company, Occidental Insurance Company, Peerless Insurance, Plymouth Rock Assurance Corporation, Praetorian Insurance Company, Preferred Mutual Insurance Company, Premier Insurance Company of Massachusetts, Progressive Insurance Company, Quincy Mutual Fire Insurance Company, Safety Insurance Company, State Farm mutual Automobile Insurance Company, United Services Automobile Association (USAA), and Vermont Mutual Insurance Company.

One of the methods you can use to reduce the cost of your auto insurance premiums is to purchase more than one type of insurance policy with the same company.  You will also get discounts for a clean driving record and possibly for renewing you policy with the same company repeatedly.  Making sure you insurance never lapses will sometimes reduce your premiums as well as belonging to a particular professional group such as engineers, teachers, or doctors.  Younger drivers can get discounts for maintaining good grades, and completing a driver safety course approved by the state.  Insuring multiple vehicles will also reduce your premiums.  Anti theft devices and safety mechanisms such as airbags and seat belts will contribute to the reduction of your auto insurance premiums.  It may also be useful to know which cars are frequently targeted by thieves.  The list of the top ten most often stolen cars in the state of Iowa are listed below.

1. 2000 Honda Civic
2. 1994 Honda Accord
3. 1991 Toyota Camry
4. 1995 Accura Integra
5. 1999 Jeep Cherokee/Grand Cherokee
6. 2006 Toyota Corolla
7. 1997 Ford Taurus
8. 2000 Dodge Caravan
9. 1997 Ford Explorer
10. 1993 Oldsmobile Cutlass