Auto insurance rates in Massachusetts vary depending on where you live, with drivers in densely populated urban areas paying more on average. Newton has one of the lowest rates at $133 per month, while Revere has one of the highest at $229 per month. The top 10 most expensive municipalities in Massachusetts for auto insurance are all in urban areas, reflecting the correlation between population density and costs.
This disparity is due to territorial ratings used by insurance companies to determine rates based on the likelihood of accidents in each area. In urban locations with higher congestion, there is a higher risk of accidents, leading to higher insurance rates. In 2022, over 90% of vehicular deaths in Massachusetts occurred in urban areas.
Critics argue that territorial ratings discriminate against communities of color that are more likely to live in urban areas. Senator Pavel Payano has proposed a bill that would change the state’s rating formula to give more weight to a driver’s local area, potentially reducing rates in urban areas. Data shows that diverse communities in Massachusetts pay 90% more on average than less diverse areas.
Overall, the geographic disparity in auto insurance rates in Massachusetts reflects the impact of population density, congestion, and the risk of accidents on insurance costs. Proposed legislative changes aim to address concerns about discrimination and potentially lower rates in urban areas.
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