We see it all the time. A young Boston driver, newly licensed and under 25 decides they’re going to wake up and buy a two or 3 year-old Toyota or Honda. They don’t realize they can afford the car but often times can’t afford the insurance rates.
This is why it’s always important to shop your car insurance rates BEFORE buying a car and signing the paperwork. Make sure you have an insurance policy you can afford to pay each month.
While insurance premiums can be as high as $500 a month, they get into a total loss within 3 months and cause over $25,000 in damage. So the insured paid in maybe $1,500 for insurance premiums. The insurance paid out $25,000. That means a net $23,500 is paid out by the insurance company. Insurance costs, like taxes or energy, are passed directly on to the consumer.
The insurance companies will then charge future customers higher rates to make up for the customers that crash and cancel.
Hopefully, you can find the information you’re searching for there. If not, give us a call to discuss your expensive Massachusetts car insurance rates at 774-847-7746.
Articles Explaining Why is Car Insurance so Expensive in Massachusetts
We’ve included some older, out-dated insurance articles that rank well in Google discussing “Why Massachusetts Auto Insurance is so Expensive”.