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Insurance in Massachusetts: A Guide to Auto & Home Coverage

Learn about the different types of insurance in Massachusetts, from auto to home and health, and how different factors can impact coverage and premiums.

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Massachusetts residents deal with an insurance landscape that differs from other states, sometimes leading to confusion. Below, we explore the types of available insurance in Massachusetts, average costs, factors affecting rates, and some frequently asked questions to help you make informed decisions.

By fully grasping the insurance systems in Massachusetts, you can feel more secure in making important choices to protect yourself, your family, your business, and more.

Types of Insurance Coverage Available in Massachusetts

Like many states, Massachusetts has many different types of insurance available to protect many things.

Auto Insurance in Massachusetts

Car insurance in Massachusetts is compulsory for all drivers. Massachusetts operates under a "no-fault" auto insurance system. This means drivers recover damages from their insurance companies regardless of who was at fault in an accident. Massachusetts requires four types of auto insurance for all vehicle owners:

  • Bodily injury to others: Covers injuries that you or someone you allow to drive your vehicle may cause to other people in an accident. You must carry at least $20,000 in bodily injury liability coverage per person and $40,000 per accident if multiple people are injured.
  • Personal injury protection (PIP): Covers your medical expenses and lost wages and those of your passengers or someone you allowed to drive your vehicle, regardless of fault.
  • Bodily injury caused by uninsured auto: Covers you, anyone in your vehicle, or anyone you allowed to drive your vehicle if they are injured in an accident caused by an uninsured or unidentified driver. You must carry at least $20,000 in uninsured motorist coverage per person and $40,000 per accident if multiple people are injured.
  • Damage to someone else’s property: This covers damage to other people’s property when you or someone you allow to drive your vehicle causes an accident. You must purchase at least $5,000 in property damage liability coverage.

Massachusetts car insurance companies also offer optional coverages, such as:

  • Comprehensive coverage: Covers non-collision losses, such as flooding, theft, or vandalism.
  • Collision coverage: Covers damage to your vehicle if it collides with another object.
  • Underinsured motorist coverage: Covers the difference between the damages you incurred from an accident and the at-fault driver’s coverage limits.

Home Insurance in Massachusetts

Homeowners insurance offers protection against household losses from fire, theft, vandalism, and certain natural disasters.

Massachusetts’ coastal climate adds an extra wrinkle to homeowners insurance. Because this area is at risk of hurricanes, floods, severe winter storms, ice dams, and other severe weather, homeowners insurance policy premiums can be higher than expected.

Factors Affecting Insurance Rates in Massachusetts

Each insurance type has its variables that impact cost. Let’s look at each of the common types and factors that may affect insurance rates.

  • Auto insurance: Your age, vehicle type, vehicle age, location, claims history, coverage type, and driving record
  • Home insurance: Home location, flood or hurricane risk, home value, coverage options, home age, and home condition

Useful Massachusetts Insurance Resources

Massachusetts residents have resources to help them understand their insurance options, including:

If you’re looking to buy auto insurance or just want to explore rates, EverQuote is another valuable resource. We can help you compare many auto insurance premiums quickly and for free online so you know you’re getting cheap car insurance in Massachusetts.