Massachusetts Auto Insurance – The Facts
Massachusetts if the fourth most expensive state in the U.S. for car insurance and it is one of the most stringent when it comes to the minimum mandatory auto insurance cover requirements. These requirements are examined in more detail below.
Personal Injury Protection (PIP)
In an attempt to cut the number of lawsuits arising from auto accidents, Massachusetts became a no-fault state som time ago. This means that every driver must have a minimum of $8,000 PIP coverage to pay for the driver’s own medical expenses, vehicle damage and time lost from work.
Bodily Injury and Property Damage to Others
There is also a requirement to have coverage for bodily injury and property damage sustained by others in an accident caused by the insured driver. The minimum level for this coverage is $20,000 for medical expenses incurred by a single individual and $40,000 for the combined medical expenses of all the occupants of the car at the time of an accident and $5,000 for property damage.
If the actual medical expenses and/or property damage expenses exceed these figures then the driver at fault is liable to make up the shortfall. Whilst the medical expenses of the driver at fault are covered by PIP, damages to his vehicle or other property are not. Because of this it is recommended that drivers carry more than the minimum cover.
Un-insured/Under-Insured Driver Coverage
It is mandatory in Massachusetts for each driver to have un-insured/under-insured driver coverage. This will pay for any damages to either vehicle or person resulting from an accident involving insured and another motorist who is either un-insured or under insured and unable to pay the damages incurred or who leaves the scene of the accident.
The Massachusetts auto insurance industry is highly regulated which discourages companies out of state to do business there. This lack of competition tends to drive auto insurance rates up. State laws have been enacted which have brought some liberalization of the market and more are being introduced which it is hoped will attract out of state auto insurance companies and thus force rates down.
By: Colin R Cherry