Why Massachusetts Auto Insurance Rates Are Spiking

Happy New Year! Now pony up.

Auto insurance rates in Massachusetts are up for 2024, with some folks reporting rate increases of as much as 60 percent over 2023 rates. My wife and I insure with Geico. We experienced a 40 percent increase.

One main reason insurance costs are up so dramatically is that it costs more to repair today's cars. Tom Skelly, vice president and partner at Deland, Gibson Insurance, told Boston's WBZ-TV Channel 4 that the cost to repair autos has "increased exponentially." Skelly said inflation is only partly to blame.

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Forbes attributes increased auto insurance rates nationwide in part to the COVID-19 pandemic. The publication reported fewer folks drove during the pandemic, which brought rates down.

It makes sense. Fewer people driving made for safer roads and fewer accidents. As a result, many insurance companies lowered their premiums.

Forbes says, "With the pandemic largely behind us, drivers have returned to the roads in big numbers. More drivers on the roads logging longer distances means more accidents – and higher car insurance rates."

The Massachusetts Office of Consumer Affairs and Business Regulations' Insurance Division says, "It pays to shop around" when purchasing auto insurance as you "may be able to get different insurance products or packages for different prices if you shop around."

Other factors driving up auto insurance costs in Massachusetts and elsewhere include more expensive technology, a shortage of automobile repair technicians, and the ongoing microchip shortage.

According to Mass.gov, auto insurance is required in Massachusetts.

"The minimum coverages for a basic policy are still mandated by Massachusetts law," the site states. "The types of insurance you are required to purchase by law are called compulsory insurance, and will not change."

"The types of additional coverage you may purchase voluntarily, known as optional insurance, may vary from company to company," according to the state.