The impact of location on Massachusetts car insurance

Are you moving to or within Massachusetts anytime soon? Moving is never easy, no matter how close or far your new home is. There is always something you forget to pack, but one thing you don’t want to forget about is your car insurance. Just because you are driving the same car does not mean your insurance stays the same after you move, especially if you are coming from a different state.

Adjusting car insurance is usually the last thing anyone is thinking about when moving. Once you get settled in your new home, remember to update your auto insurance before you end up with a fine! Unfortunately, auto insurance does not work like a Netflix subscription where you get the same perks anywhere you go.

Important things to remember when moving

Don’t forget to check your car insurance policy before you move! If you are moving within or to Massachusetts, car insurance companies will likely adjust your rates depending on two things:

• The claims history (amount of theft, break-ins, and accidents) of the place you’re moving to
• Your commute distance

For those moving into Massachusetts

If you’re making Massachusetts your new home, you will need to cancel your old insurance policy and get a new one, even if you wish to stay with the same insurance company.

You cannot have car insurance in two different states, because every state has different coverage requirements and regulations. Contact your current insurance provider to find out if they offer auto insurance in Massachusetts. If not, Surround Insurance can help you find a Massachusetts policy!

It is also important to learn as much as you can about the insurance requirements in Massachusetts. While there are many types of coverage offered, you are only required to have four. They are the following:

1. Bodily Injury to Others
2. Personal Injury Protection (PIP)
3. Bodily Injury Caused by an Uninsured Auto
4. Damage to Someone Else’s Property

Be aware that, in Massachusetts, you will have 30 days to switch your auto insurance, driver's license and car registration. If you don’t update your policy and documents in time, the state will fine you.

Learn more about Massachusetts state requirements for auto insurance on their website.

For those moving within Massachusetts

Luckily for you, if you are moving within the great state of Massachusetts, you do not need to cancel and purchase a new insurance policy. All you need to do is update your address with your provider. Your provider will likely adjust your rate, but the changes will often be smaller compared to moving from out-of-state.

Best insurance companies for Massachusetts drivers

There are a lot of car insurance companies to choose from in Massachusetts. We understand that this can be very stressful, so here are some average annual rates from the most popular companies for you to compare.

• State Farm: $576
• Safety Insurance: $792
• Vermont Mutual: $873
• N&D Group: $1,110

These averages are for motorists with a clean record. If you have traffic violations on your record, your average rate will be higher.

Cities where your car insurance rate will be higher

The more claims people file in a given area, the more it costs insurance companies to provide coverage there. To make up the difference, they charge more to customers. Two major factors affecting the number of claims in an area are traffic rates and population density. If you reside in a city with a higher population and more drivers, your insurance will be more expensive. On the other hand, if you live in a rural area with little traffic, your insurance will cost less. The number of accidents and the crime rate in an area also affects the claims volume.

Additional auto coverage options in MA

While purchasing the bare minimum requirement for auto insurance might seem like a good way to save money, we don’t recommend it. The minimum car insurance requirements in any state, not just Massachusetts, are often inadequate to protect you. Since most states only require liability insurance, getting the minimum coverage means your provider will not cover your car repair bills if you get into an accident.

Comprehensive and Collision Insurance

If you want coverage for your car repairs , you will need collision and comprehensive insurance (often sold together). Together, these cover:

• Damage from car accidents
• Car theft
• Vandalism
• Collisions with animals
• Falling objects
• Fires, floods, and hail damage

Gap Insurance

Gap insurance is for when your car is totaled due to a problem covered by your insurance policy. It works exactly like its name: it covers the gap, or difference, between the cash value of your car and how much you owe on your loan or lease of the car. For example, if you have $18,000 outstanding on your loan but the value of your car is $14,000, the insurance will bridge this gap with $4,000.

Rental Reimbursement Insurance

When would you need rental reimbursement insurance? When your vehicle is being fixed at a shop for a reason covered by your policy. The key phrase here is “due to a problem covered by your policy.” If it is not a problem covered by your policy, then any money you spend on your substitute transportation during that period will not be reimbursed. This type of insurance covers any form of transportation while your car is in the shop, such as a rental car, bus, train, etc.

Roadside Assistance Insurance

Worried about what will happen if you suddenly break down on the side of the road? That’s what roadside assistance insurance is for! For example, roadside assistance can help you out if you have a flat tire on the highway, need a jumpstart or must arrange a tow.

How do driving records affect your premium in Massachusetts?

Accidents happen all the time, especially when driving in New England weather. Unfortunately, the more accidents you get into, the higher your insurance premium will get. A simple minor traffic violation could cause a 10-15 percent increase in your premiums. These violations also stay on your driving record for six years. Driving records that insurance companies will look into before getting new or renewing insurance. Just remember, a clean driving record can lower your premium. To save money, drive safely!