One of the many criteria that aid in calculating the amount you pay each year for auto insurance is where you normally keep your vehicle. Regions with more people or even just more weather-related claims will most likely pay more, whereas areas with less crime or weather claims benefit from lower coverage costs.
The table below sorts the most expensive places in Massachusetts for college graduates to purchase a policy in. Boston ranks #7 with the annual price of $1,805 for the average insured, which is approximately $150 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Brockton | $2,143 |
| 2 | Revere | $2,127 |
| 3 | Lynn | $1,979 |
| 4 | Malden | $1,936 |
| 5 | Lawrence | $1,896 |
| 6 | Springfield | $1,851 |
| 7 | Boston | $1,805 |
| 8 | Fall River | $1,717 |
| 9 | New Bedford | $1,716 |
| 10 | Worcester | $1,695 |
| 11 | Somerville | $1,648 |
| 12 | Quincy | $1,596 |
| 13 | Medford | $1,590 |
| 14 | Lowell | $1,573 |
| 15 | Weymouth | $1,506 |
| 16 | Chicopee | $1,500 |
| 17 | Cambridge | $1,491 |
| 18 | Haverhill | $1,468 |
| 19 | Framingham | $1,446 |
| 20 | Brookline | $1,442 |
| 21 | Taunton | $1,440 |
| 22 | Peabody | $1,420 |
| 23 | Methuen | $1,389 |
| 24 | Waltham | $1,354 |
| 25 | Newton | $1,310 |
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Table data uses approximated as the vehicle garaging location can affect price quotes noticeably.
The make and model of vehicle needing coverage is one of the largest considerations when shopping around for the best cheap coverage for college graduates. Vehicles with high performance engines, a lack of advanced safety features, or a track record of large liability claims will cost quite a bit more to insure than more economical and safe models. The list below presents insurance prices for a selection of the most economical automobiles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $1,479 |
| Ford Escape XLS 2WD | $1,485 |
| Honda CR-V EX 2WD | $1,526 |
| Ford Edge Limited 2WD | $1,573 |
| Chevrolet Equinox LS AWD | $1,604 |
| Chevrolet Malibu LS | $1,611 |
| Toyota Tacoma Double Cab 4WD | $1,604 |
| GMC Sierra SLE Crew Cab 2WD | $1,614 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,623 |
| Ford Explorer Eddie Bauer 2WD | $1,657 |
| Toyota Prius | $1,691 |
| Toyota Corolla S | $1,699 |
| Chevrolet Silverado LT Crew Cab 4WD | $1,722 |
| Dodge Grand Caravan Hero | $1,751 |
| Chevrolet Impala LT | $1,761 |
| Ford Focus SE 4-Dr Sedan | $1,764 |
| Toyota RAV4 4WD | $1,804 |
| Toyota Camry LE | $1,810 |
| Kia Optima EX | $1,838 |
| Ford F-150 FX4 4WD | $1,846 |
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Table data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Massachusetts minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Estimates do not factor in specific garaging location which can decrease or increase prices considerably.
By looking at the data, we can presume that makes and models like the Hyundai Elantra, Ford Escape, Honda CR-V, and Ford Edge are most likely going to be some of the more affordable vehicles to insure for college grads.
Difference between full coverage and liability only rates
Paying a lower price for car insurance is probably important to the majority of people, and a great way to pay lower rates for insurance for college graduates is to not buy comprehensive and collision coverage. The example below visualizes the comparison of insurance costs with full coverage compared to only the Massachusetts minimum liability coverage. The premiums are based on a clean driving record, no claims, $250 deductibles, single marital status, and no additional discounts are factored in.
If all age groups are averaged, physical damage coverage on your policy costs an extra $1,756 per year more than buying just liability insurance. Many drivers will wonder when is the right time to remove full coverage. There is no definitive guideline of when to eliminate physical damage coverage on your policy, but there is a general school of thought. If the yearly cost of full coverage is about 10% or more of the settlement you would receive from your company, then you may need to consider dropping full coverage.
For example, let’s assume your vehicle’s replacement value is $9,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most you would receive is $8,000 after you pay the deductible. If it’s costing you more than $800 a year for physical damage coverage, then it may be the right time to buy liability only.
Careless driving habits raise Boston car insurance rates
The easiest method to obtain affordable car insurance premiums in Boston for college grads is to be a careful driver and avoid getting tickets or having accidents. The chart below shows how traffic citations and accidents influence insurance rates for different categories of driver ages. The data assumes a married male driver, full coverage, $250 deductibles, and no discounts are taken into consideration.
In the prior example, the average cost of car insurance in Boston per year with no accidents and a clean driving record is $1,998. Add in two speeding tickets and the average cost hikes up to $2,762, an increase of $764 each year. Now throw in two accidents along with the two speeding tickets and the yearly cost of car insurance for college graduates increases to an average of $5,603. That’s an increase of $3,605, or $300 per month, just for not keeping your driving record clean!
A good deal can quickly turn bad
Massachusetts car insurance rates are impacted by many things that will increase or decrease your annual premium. Simply getting older, buying a home, or having an accident may generate price changes resulting in some companies being cheaper than others. Also, companies change rates as needed to help ensure profitability. Significantly higher claims may cause higher priced premiums, while a profitable period can result in cheaper Boston car insurance rates.
To illustrate this example, the graph below shows the companies that have the cheapest car insurance in Boston, MA for a 40-year-old female driver with a clear driving record, no claims, and a high credit rating. When comparing rates based on her current risk profile, State Farm might offer the lowest car insurance rates in Boston at $942 a year. This is $293 less than the average policy premium paid by Massachusetts drivers of $1,235. National Grange Mutual, GEICO, OneBeacon, and Commerce Group are also on the list of the cheapest Boston, MA auto insurance companies.
Now we will give the driver from the above example a couple of claims, a lower credit rating, and an imperfect driving record. Because each insurer uses a different method for filing rates in each state, comparing rates could result in a slightly different list of companies as shown below.
Arbella now has the lowest price in Boston with Norfolk and Dedham, USAA, Amica, and GEICO also having competitive pricing. This demonstrates why consumers need to perform an extensive rate comparison when trying to get affordable car insurance quotes for college graduates.
Prices are influenced by many risk factors and change dramatically, so the best company when you last compared rates may now be wasting a lot of money.