Massachusetts is a “no fault” auto insurance state which basically means that your policy pays for your injuries and expenses and the other driver’s policy pays for his/her injuries and expenses, no matter who was at fault in the crash. In Massachusetts, auto insurance is mandated by state law and there are four compulsory parts required with minimum limits of liability required for each part. Part 1, Bodily Injury to Others, protects you against legal liability in an accident for injuries sustained to passengers in the other vehicle. It does NOT protect passengers in your car nor an accident outside of Massachusetts. The legal limit is $20,000 per person and $40,000 per accident. Part 2, Personal Injury Protection, pays up to $8,000 for medical expenses, replacement services and 75% of any lost wages. And, this includes anyone you let drive your car regardless of who caused the accident. Part 3, Bodily Injury Caused by an Uninsured Auto, protects you (and anyone you let drive your car) against losses caused by an uninsured driver. This part also requires $20,000/$40,000 limits of liability although more coverage can be purchased. Part 4, Property Damage, pays for damage to someone else’s property when you are involved in an accident. The minimum limit required is $5,000 but most people carry significantly more coverage on their policy.
Those four parts represent the mandatory coverage required by Massachusetts state law but most people would want to purchase additional sections of the policy to better protect them in an accident. Part 5, Optional Bodily Injury to Others, is one such coverage that should be added for most drivers. This part protects you as did Part 1 but can give you extra protection in the form of higher limits, protection for passengers in your car and protection outside of Massachusetts. You should consult an agent to help determine the limits to carry and what best fits your needs. Part 6, Medical Payments, will pay for reasonable medical and funeral services when involved in an accident. This coverage part may not be necessary if you have adequate health insurance coverage but it can afford additional coverage that your health policy may not cover such as an uninsured passenger. Part 7, Collision, pays for damage to your car regardless of fault and Part 8, Limited Collision, pays for damage to your car if you are less than 50% at fault and you have the name of the other driver. If you have a lien on the car, collision coverage would be required by your lien holder. Part 9, Comprehensive, pays for damage to your car for such things as fire, theft and vandalism. Again, if there’s a lien on the car, your lien holder will require you to purchase this coverage. Even if your car has little value, this section could pay for a broken windshield which could run you several hundred dollars. So, it’s worth considering purchasing for the relatively small premium on this part. Part 10, Substitute Transportation, will pay you up to the limit you choose and under certain circumstances towards the rental of a replacement vehicle while your car is being repaired after and accident. If you would rent a car should your car be stolen or involved in an accident, you should consider buying this coverage part. Part 11, Towing and Labor, would pay you up to your limit ($50.00 or $100.00) for the cost of towing and labor each time your auto is disabled. If you belong to a Motor Club or have Roadside Assistance from your vehicle’s manufacturer, this coverage may not be needed. Part 12, Bodily Injury Caused by an Underinsured Auto, would pay you for bodily injury (in certain circumstances) in an accident where the other driver did not have enough insurance to pay for your injuries. Again, you should consult with an insurance professional to determine your particular needs. rnNow that you have an idea of what the policy will cover and how much insurance you should buy – what about the price? On April 1, 2008, managed competition came to Massachusetts and with it came competitive rating. There are many factors that affect your rate, such as where you live, the car you drive and your driving record. It’s always good to shop around for the best price and all available discounts. Discounts can vary from “low mileage” to “multiple cars” and even “good student” discounts. Always check with your agent to see what you may be eligible for. In most cases, it’s best to “package” your home and auto policies with the same carrier as they will offer discounts on both policies if they write both.
Finally, be sure to see that each carrier is rating with the same information and set of circumstances. Many times that information is not the same and that could affect the rate significantly. Choose an agent that can offer you several different quotes with financially strong carriers and that the agent has a good reputation for customer service.
For more information, please visit us at
www.amityauto.comrn