Massachusetts Car Insurance Surcharges

Massachusetts has introduced a program called the Safe Driver Insurance Plan (SDIP). It is designed to keep rates down for people with good driving records. People who present a higher risk are expected to pay more.

The SDIP gives each driver a rating and an adjustment may be made to car insurance rates after any discounts or other rating factors are applied. Depending on the SDIP factor a driver’s rates for the following types of insurance can be raised or lowered:

  • Bodily Injury Liability
  • Collision
  • Personal Injury Protection
  • Property Damage Liability

All drivers start at Step 15, which is considered a neutral place on the SDIP chart. Moving a single step above or below Step 15 means a seven percent difference in the cost of coverage. Step 9 is the lowest level, and entitles drivers to a whopping 42 percent savings on the cost of their car insurance.

Being involved in an accident or having a traffic violation added to your record mean that points are added to the driver’s record. A minor incident means two points, while an at-fault accident adds three. A DUI charge adds five points to a driver’s record and means a surcharge will be added to his or insurance premium.

There is good news for drivers who have don’t have the driving history, though: maintaining a clean record for three years in a row means that his or her starting point for SDIP purposes will be set at 14 (one level away from the neutral setting).