Why did my car insurance go up in Massachusetts?

Why Did My Car Insurance Go Up When I Didn't Have an Accident?

 

Your renewal shows up, you haven't had an accident or a ticket, and the premium is higher anyway. If you drive in Wilmington, Burlington or Middleton, you're far from alone. This is one of the most common auto insurance questions we hear at K&B Insurance, and the answer usually has very little to do with you.

Here's what's actually driving auto insurance costs up in Massachusetts, how rates are set here, and what you can do about it.

Why rates are rising for everyone

Insurance pricing is based on what claims cost across all drivers, not only on your own history. When the cost of paying claims goes up, premiums follow, even for people with spotless records.

• Repairs cost more than they used to. Today's cars are full of sensors, cameras and computers. A minor bumper hit can mean replacing radar units and recalibrating safety systems, which turns a small repair into a big bill.
• Parts and labor are more expensive. Replacement parts cost more, and many body shops are short on skilled technicians, so cars stay in the shop longer and rental costs add up.
• Medical costs keep climbing. Massachusetts is a no-fault state, so every policy includes Personal Injury Protection (PIP). As medical and treatment costs rise, so does the cost of injury claims.
• Accidents are more severe. Distracted driving and higher speeds mean that when crashes happen, they tend to be more costly.
• Weather and theft add up. New England storms, flooding, falling limbs and vehicle theft all drive up comprehensive claims.

None of these show up on your driving record, but they all show up in the price of coverage.

How Massachusetts sets auto rates

Massachusetts does things a little differently than most states, which helps explain what you see on your bill.

• Rates are filed with the state. Insurers set their own rates, but they must file them with the Massachusetts Division of Insurance. When a company's claim costs rise across the state, it files for an increase that applies broadly, not just to drivers who had claims.
• Your credit score isn't used. Massachusetts prohibits insurers from using credit-based insurance scores to price auto policies. So a rate change isn't coming from your credit.
• Your driving record matters, but it's only one piece. The Safe Driver Insurance Plan (SDIP) adds surcharges for at-fault accidents and violations and rewards clean records. A clean record keeps you from paying more than you should, but it can't offset an industry-wide increase.
• Where the car is garaged counts. Rates vary by territory based on traffic, claim frequency and repair costs in that area.

What this looks like in Wilmington, Burlington and Middleton

Wilmington. With I-93 running right through town and Routes 38, 62 and 129 carrying daily commuters, many Wilmington drivers spend a lot of time in heavy traffic. More miles in congested conditions means more exposure to fender-benders, and every one of those repairs now costs more.

Burlington. Burlington sits at the crossroads of Route 128/I-95 and Route 3, and it draws shoppers, employees and visitors from all over the region. Busy roads, crowded parking lots and stop-and-go traffic are a recipe for frequent small claims, which drive up costs for everyone in the area.

Middleton. Middleton has a quieter, more residential feel, but Routes 114 and 62 still see plenty of through traffic. Wooded roads also bring wildlife collisions and storm damage from falling trees, which fall under comprehensive coverage.

No matter which of these towns you call home, the same statewide trends apply: higher repair bills, higher medical costs and more severe claims.

What you can do about it

You can't control repair costs or medical inflation, but you do have options.

1. Review your coverage, not just the price. Make sure your limits still fit your life. Cutting liability limits to save money can leave your home and savings exposed if you cause a serious accident.
2. Revisit your deductibles. Raising your collision and comprehensive deductibles can lower your premium. Just choose an amount you could comfortably pay out of pocket.
3. Ask about discounts. Many carriers offer savings for bundling home, condo or renters insurance with your auto policy, paying in full, going paperless, good students, and certain vehicle safety features.
4. Check that your information is current. A shorter commute, a new job working from home, or a driver who moved out can all change your rate.
5. Shop with an independent agent. A captive agent can only offer one company. An independent agency compares multiple carriers for you, so you can see whether another company prices your situation more favorably.

Frequently asked questions

Why did my car insurance go up if I didn't have an accident?
Most increases come from rising industry-wide costs, like vehicle repairs, parts, labor and medical bills. Insurers file rate changes with the Massachusetts Division of Insurance that apply broadly, not only to drivers with claims.

Does my credit score affect my auto insurance rate in Massachusetts?
No. Massachusetts prohibits insurers from using credit-based insurance scores to price auto policies.

Do auto insurance rates differ in Wilmington, Burlington and Middleton?
Yes. Rates vary by where your car is garaged, based on local traffic, claim frequency and repair costs, so drivers in neighboring towns can see different premiums.

How can I lower my auto insurance premium?
Review your coverage and deductibles, ask about discounts like bundling, keep your information current, and compare carriers through an independent agent.

Let's take a look together

A higher renewal with a clean record is frustrating, but it doesn't mean you're stuck. At K&B Insurance, we work with drivers in Wilmington, Burlington, Middleton and throughout the area to review coverage, find every discount available, and compare options from multiple carriers.

If your auto renewal went up, give us a call at 978-563-4373. We'll walk through your policy with you and make sure you're getting the right coverage at a fair price.