Why are there so few auto insurance companies in Massachusetts?
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I remember many years ago (late '70s) when I was applying to M.I.T., the material they sent me said that MA had the highest rate of car theft in the nation. I don't know if that's still the case after more than 25 years, but if so, that could cause there to be few insurance companies there.
I know it's maybe the only state left in which Geico won't insure.
small state
When I read your question, two possibilities came to my mind: low profitability, and/or legislation.
It could be possible that, because of Mass's population density and economic geography, your state is a "high risk" state. In other words, the gross payouts in claims is high compared to receipts in premiums.
The other possibility is legislation. Perhaps the laws and regulations in Mass make it difficult to write insurance in your state. It used to be worse in NJ, but it got better. We now have those companies writing in NJ, to the benefit of the public (I carry GEICO, who used to not write two years ago).
High fraud and strict regulations. Two things that insurance companies don't want to mess with...
Massachusetts regulates auto insurance and only uses two or three insurance companies. I live in Mass and know this is a huge pain in the butt! I'd like to save alot on car insurance but It just isn't going to happen in this state.
I would guess it's because of state regulations and high risks.
http://www.insure-a-car.com/
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