It would be great if you could just wave a magic wand and have your Salem car insurance coverage taken care of. When many people think about Salem, MA, they think about the witch trials of 1692 where hundreds of men, women and children were put to death or imprisoned because they were accused of witchcraft.

Today, however, Salem is the home of nearly 45,000 residents as well as the largest state college in Massachusetts (Salem State College). Salem is also the home of Witchcraft Heights, one of the schools in Salem, and the police cars and other public vehicles sport witch logos on their vehicles. Salem even has a statue of the character Samantha Stevens, from the television show Bewitched.

While Salem is the one place you might imagine that magical car insurance could exist, sadly, it does not. In this city, and in all others in Massachusetts, it is the law to have auto insurance on every registered vehicle in the state, and that takes some plain old mortal work.

Salem Car Insurance Changes

Prior to April 1, 2008, Salem Massachusetts auto insurance rates were fixed and established by the Massachusetts Commissioner of Insurance. What this meant for drivers was that they could not get comparison rates for their vehicles. Instead, there was a base rate established by the Commissioner of Insurance, and then increases were added based on a system called the Merit Rating Board. The Merit Rating Board assigned points for each driving infraction, which would then be translated into increases on an individual’s monthly premium.

After April 1, 2008, the system changed and drivers are now able to compare rates with different companies which led more insurance companies to start selling auto insurance in Salem, and the rest of Massachusetts. However, Massachusetts is unusual compared to other states as the Commissioner of Insurance still has control over how much an insurance company can charge for their premiums. In essence, all rates have to be approved by the commissioner.

The Merit Rating Board is still in effect in Salem as well, and insurance companies use this system to determine what your premiums will be. Infractions are kept on record for six years, however there are some laws protecting drivers from being penalized for certain infractions after a certain amount of time. For example, a parking ticket can only affect your rates for one year while an accident you caused can affect your rates for up to six years.

What These Salem Car Insurance Changes Mean for Drivers

What these changes mean for the drivers in Salem is that they can find more competitive rates for Salem car insurance coverage. When the state was calling the shots, there were no discount programs for good drivers. Instead, drivers all started with a base rate and it then increased based on their driving record.

Competition is good for consumers and Massachusetts drivers can now compare rates using a free quote tool instead of going with any old insurance company because the rates do not change. With more insurance companies willing to sell their auto insurance in Salem, it is possible for Salem residents to save a lot more money on their auto insurance than ever before.

Fortunately, in a smaller town like Salem, which has fewer people per square mile than larger cities and has fewer accidents, insurance can be even cheaper (rather than a state requirement that was the same for every city, rates are narrowed down by location). In fact, the average insurance rate in Massachusetts overall is nearly $2,000 annually, while in Salem the annual average is $1,200 a year. Like magic. That is quite a substantial savings for Salem residents.

Salem Auto Insurance Requirements

Every state has minimum requirements for their drivers and Massachusetts is no different. It does not matter which city you live in, in Massachusetts, your requirements will be the same. The minimum coverage in Massachusetts is $20,000 bodily injury per person, $40,000 bodily injury per accident, $5,000 property damage, $20,000 uninsured motorist coverage per person, $40,000 uninsured motorist coverage per accident and $8,000 personal injury protection per accident.

It is difficult to sue other drivers in Salem if they cause an accident and do not carry insurance because Massachusetts is a no-fault state. In any accident situation, your insurance coverage pays for damages for your vehicle and yourself, while the other person's insurance covers their damages. Your damage is only covered to the extent of the amount of insurance you carry so consider that when purchasing insurance for your car. Consider this scenario for a moment; you own a vehicle worth $10,000 and you are in a car accident that causes your car to be totaled. You only carry the minimum insurance, which means that your property damage coverage is $5,000. You will be out of $5,000 and if you still owe money on your car, you could end up making payments on a car that you can no longer drive.

Salem also has an on demand system for auto insurance, so an officer can pull you over for any reason and demand that you show them proof of insurance. If you do not have proof of insurance, you will receive a citation. Even if you come to court with proof of insurance, this citation will not be waived; it is the penalty for not providing proof of insurance when requested. This citation will likely cause your auto insurance rates to increase because the infraction will be reported to the Merit Rating Board.

The fines in Massachusetts for not having insurance at all are very high. They range from $500 to $5,000 and up to one year in jail. What’s more, your license will be suspended until you provide proof of insurance. You will also receive a citation, which will be reported to the Merit Rating Board, again affecting the cost of your insurance. If you provide proof of insurance that covers the time of the citation, then the additional fines will be waived.

For drivers who have just moved to Salem from another state it is assumed, until their driving records are provided from their prior state, that they have a clean driving record. Most states have an automatic recording system for accidents and such; however, if a case exists where your records cannot be found, you have 90 days to produce them or your license will be suspended until you do. Or you offer proof of having no driving record.

Compare Salem Car Insurance Quotes!

Choosing the right insurance plan in Salem does not have to be complicated or time-consuming. Your magic wand is a free quote tool that takes the guesswork out of choosing the right insurance. These devices give Massachusetts residents the ability to compare Salem car insurance rates side by side, and get lower rates than they could a little over a year ago.

Enter your zip code above to get started today!