Insurance (Boston, Worcester, Springfield: car insurance, credit rating, live in)

[MM530]

I am thinking of having a car when I move to Boston . Is the insurance really that bad as everyone makes it seem ? I am a 22 yr old male...?

[ChunkyMonkey]

Car insurance in Mass is in a state of flux. Mass. has been the only state that sets the rates for all car insurance. However, that has led to no competition. Some large companies such as Geico don't even offer coverage in Mass. However, all that is about to change first of the year. The latest news is that rates should come down about 7%. However, who really knows what will truly happen. Good luck.

[JasonWerner57]

My car insurance went down significantly when I moved here from South Beach. It went down over 150.00/month!!!! Carefully consider if you really need a car. I live in Chelsea, which is a 10 minute bus ride from downtown Boston. I only use my car once or twice a week!

[neil0311]

Originally Posted by MM530

I am thinking of having a car when I move to Boston . Is the insurance really that bad as everyone makes it seem ? I am a 22 yr old male...?

Car insurance in MA is based on three things...period.

1- The make/model/yr of the car
2- The town you live in
3- Your driving history...tickets and accidents

Your age, credit history, and affiliations are not used in MA as they are in every other state. In MA, good drivers subsidize the poor habits of bad drivers, so the rates are uniform no matter what company you use. Most of the major insurance companies do not even write policies in MA, so you're left with second and third tier companies, and they all charge the same gov't mandated premiums. The only thing you can sometimes get is a small discount on a portion of your policy, but only if you've had no tickets or accidents in at least 6 years.

Welcom to the "People's Republic" where the gov't always knows best.

EDIT: Check out Don't All Insurance Companies Charge the Same Rate in MA (http://www.aib.org/FAQ/Bill's%20FAQ/Don't%20All%20Insurance%20Companies%20Charge.htm - broken link)

[smarty]

Beside the
1- The make/model/yr of the car
2- The town you live in
3- Your driving history...tickets and accidents

Age is definitely a factor... if you are male under 25...(via driving history)

In MA, good drivers subsidize the poor habits of bad drivers, so the rates are uniform no matter what company you use.

I don't understand how good drivers subsidize bad ones when driving history affects your rate.


Here's the MA car insurance brochure
http://www.mass.gov/Eoca/docs/doi/Consumer/WaysToSave.pdf (broken link)

[doublea21]

In MA its not age but time that you have your license. The rate decrease happens at 25 or 6 years driving experience, whichever comes first.

[neil0311]

Originally Posted by smarty

I don't understand how good drivers subsidize bad ones when driving history affects your rate.

Do some research. Google is your friend. At a high level, the issue is that MA requires all insurance companies to share the high risk pool. Who do you think pays that additional premium, you and I, the "good drivers". In most states, people with really bad driving histories (or who live in high theft areas) would be cancelled or charged VERY high rates. MA does not allow cancellation for driving record and keeps the rates down in the name of "protecting the consumer", but what happens is that people with good driving records outside of Boston, Worcester, Springfield end up paying higher rates to make up the difference. Why do you think that most insurance companies moved out of MA years ago and refuse to sell policies?

Here is one good explanation of the problem:

Squaring The Boston Globe: Missing It in Massachusetts – Our Socialized Auto Insurance System

[K-Luv]

A 22 year old male is going to have higher insurance where-ever he lives.

[neil0311]

Originally Posted by K-Luv

A 22 year old male is going to have higher insurance where-ever he lives.

Probably true, but in MA, once you've had a license for 6 years, everyone is considered the same. In most states, statistical differences and relative risk is considered for things such as age, sex, marital status, credit rating (are you responsible?), etc. In MA, none of those things can be considered.

[Stockholmaren]

Originally Posted by neil0311

Probably true, but in MA, once you've had a license for 6 years, everyone is considered the same. In most states, statistical differences and relative risk is considered for things such as age, sex, marital status, credit rating (are you responsible?), etc. In MA, none of those things can be considered.

I think it's a very thing that those things don't are taken into account. I wouldn't want to be grouped with others based on marital status for example. I understand that in general people who are married are less risky, but that may not necessarily be the case for me personally. Since this is a question of driving ability, it should come down to your driving record.
Furthermore, I think people shouldn't have their car insurance canceled. I wouldn't want to be in an accident with someone who doesn't have car insurance, and even if there may be somewhat of subsidy, it's not outrageous in my opinion.