Massachusetts, like every state, has its own unique state laws for licensing drivers and its own requirements for the minimum auto insurance licensed drivers are required to carry.
Auto Insurance Massachusetts – What Auto Insurance Is Required by Law
Massachusetts, like many states, has a financial responsibility law that requires drivers to prove they can cover the costs arising from an accident they cause. The Massachusetts law goes further than some states requiring licensed drivers to carry a minimum of:
$20,000 per person and $40,000 per accident bodily injury liability insurance to cover others injury costs in an accident the insured causes; $5,000 property liability insurance to cover damage to other vehicles in an accident the insured causes
$8,000 in personal injury coverage paying for the costs of injuries to the insured, and their passengers, pedestrians, and others driving the insured’s car with permission; and, uninsured auto insurance of at least $20,000 per person and $40,000 per accident to cover injuries caused by an accident with an uninsured driver.
Auto Insurance Massachusetts – Proof of Financial Responsibility Law and What it Means
In Massachusetts, the only acceptable proof of financial responsibility is to show evidence of a current auto insurance policy with limits that meet or exceed the minimum insurance coverage required by Massachusetts law.
Every insurance company which sells insurance in Massachusetts will provide the insured with a form that provides the names of the insured and the effective and expiration dates of the coverage, the insured vehicle’s identification number, and either a statement that the policy fulfills the minimum required insurance law or states the limits of the policy.
Drivers must keep their proof of insurance in the vehicle at all times. Drivers must have proof of insurance with them if they are stopped for a traffic violation and of course if they are in an accident.
If you fail to provide proof of insurance you could receive a traffic citation for failure to provide that proof. A failure to provide proof of insurance citation could result in an increase in the rate you pay for your very cheap car insurance no deposit.
Auto Insurance Massachusetts – How Much Insurance is Enough?
There is no single answer to the question: how much insurance is enough? It all depends on the specific situation of the insured. Each driver needs to carefully evaluate their insurance needs, their budget and make a decision as to which types of insurance coverage they need, the limits they want the policy to include, and the deductibles they are comfortable establishing.
Property liability insurance pays for the cost of repairing damage to others’ vehicles and bodily injury liability insurance pays for the medical and related expenses sustained by others if you are found to be responsible for an accident.
Minimum Massachusetts’ required property and bodily injury liability insurance may not be sufficient to protect your home or other assets if you are in a serious accident. Many drivers carry more than the minimum required liability insurance to protect their financial well-being, their assets, and their peace of mind.
If the insured is found responsible for damages and injuries from an accident and if their liability insurance is not sufficient to cover the property damages and medical and related expenses the insured will be personally liable for the expenses above those covered by the insurance. This can result in the insured’s assets and wages being seized to cover the costs.
Liability insurance is not the place to try and save on insurance costs. There are better places and ways to try and obtain affordable auto insurance premiums.
Uninsured and underinsured motorist insurance covers the costs of damages to the insured’s vehicle and expenses related to injuries sustained in an accident with an uninsured or underinsured motorist. Massachusetts requires drivers to carry a minimum amount of uninsured motorist insurance.
The limit for uninsured motorist insurance, however, is fairly low if you drive an expensive car or do not have a good health insurance policy that will cover your medical expenses if you are injured in an accident with an uninsured motorist, it might be a good idea to carry more the required minimum of uninsured motorist insurance as part of your auto insurance coverage.
Underinsured Auto Insurance is not required but is also a type of coverage you may want to consider if you drive an expensive car or do not have other health insurance to cover the costs of injuries sustained in an accident with an underinsured motorist.
Massachusetts requires drivers to carry a minimum of $8000 of personal injury insurance. The minimum may be sufficient if the insured has a good health insurance policy that will cover the costs of injuries they may sustain in an accident. Adding additional personal injury coverage to your auto policy may not provide additional benefits only additional costs. It is worth checking out before you include personal injury above the minimum required as a part of your auto insurance package.
Collision and comprehensive insurance coverage is an optional auto insurance coverage in Massachusetts. Collision and comprehensive insurance cover damage to or replacement of the insured vehicle.
Collision insurance pays for the repair or replacement of the insured vehicle if it is damaged in an accident with another vehicle.
Comprehensive insurance covers the insured vehicle if it is damaged by acts of God, vandalism, or replaces the vehicle if it is stolen. Comprehensive insurance may pay for repairs following damage to a vehicle done by storms, hail, fire, or vandalism and will also replace the vehicle if it is stolen.
The consumer needs to read a comprehensive policy carefully. Only damages caused by those types of risk enumerated in the policy will be covered. Typically, there will also be a list or risks specifically excluded from the policy coverage.
If the insured vehicle has a fair market value of less than an annual premium for collision and comprehensive insurance and if you are able to cover repairs or replacement of the vehicle from your funds without insurance you may decide not to include collision and comprehensive insurance as part of your auto insurance package. Not including collision and comprehensive as part of your auto insurance package will lower the cost of your auto insurance.
If you financed the purchase of the insured vehicle, you may be required, by the loan agreement, to carry collision and comprehensive insurance. Check with your lender before you decide not to include collision and comprehensive insurance as part of your insurance package.
If you decide that purchasing collision and comprehensive insurance is in your best interests you can save on the cost by establishing a high deductible. A deductible is an amount the insured pays from their funds if they file a claim. The insurance covers the remainder of the cost of the claim up to the limits of the policy.
Setting a $1000 deductible will significantly lower the cost of collision and comprehensive insurance but be careful not to set a deductible so high that you will be unable to cover the deductible if you need to file a claim. Many drivers do not include rental car insurance and towing insurance in their auto package.