The state of Massachusetts is a beautiful place to live. It's also an expensive place to live, with Massachusetts insurance rates higher than average in home, auto, and health. But knowing the basics can help you make more informed decisions when it comes to finding the best insurance for your needs.
Homeowner Insurance
In Massachusetts, you will need to have homeowners insurance if you have a mortgage on your home. There are several types of homeowner insurance you can purchase, but as a general rule, most homeowners get one of the following coverage types:
- HO-3. This is the most common single-family policy. It protects your home from 16 types of perils, but it does exclude flood and earthquake damage, as well as any other exclusions listed in your policy.
- HO-5. This is a premium policy that not only covers your home from all the perils that HO-3 covers, but it also protects the contents of your home as well. HO-3 does not cover contents.
- HO-8. This policy is designed for older homes that may have a lower market value than replacement cost and is cash-value based. It covers the structure as well as the contents. If you live in one of Massachusetts' historic homes, this may be the policy for you.
Factors that affect the cost of your insurance can include the price, value, or age of your home, the area you live and its crime rate, and whether or not you live in an area prone to disasters like flooding or hurricanes.
Auto Insurance
Massachusetts insurance rates for autos are higher than most other states, with residents paying an average of $981 annually. Coverage requirements include:
- Bodily Injury Liability: $20,000 per person or $40,000 per accident
- Property Damage Liability: $5,000
- Personal Injury Protection: $8,000
Keep in mind that these limits are fairly low; it's not a bad idea to increase your liability coverage to $100,000/300,000 for personal injury and $50,000 for property. If you are hesitant to do so, it's a good idea to point out that the factors that tend to drive up insurance costs are not necessarily liability coverage; your driving record, collision and comprehensive coverage, and your deductible actually influence the costs of your insurance the most. A clean driving record and higher deductible can help to lower your costs.
Health Insurance
Massachusetts health insurance is unique in a number of ways. Residents are required to have health insurance, and employers are required to offer it if they have more than 11 full-time employees. You can save money on your health insurance, whether as an individual or an employer, by shopping around different companies for the best rates.
Saving Money on Massachusetts Insurance
You can keep your Massachusetts insurance rates low by comparing rates of local companies in your area. A site like localinsurance.com will do the work for you, finding you the best rates on insurance in your area in a matter of minutes.
