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Massachusetts Car Insurance Basics

The requirements for insurance coverage are unique to each state. Massachusetts is no exception to this statement. By gaining an understanding of what your state's requirements regarding vehicle insurance, you, as a motorist, will be in a prime position to choose an insurance policy that will provide adequate coverage for all of your needs. Receiving an automobile insurance quote is the efficient manner in which to compare rates from different insurance providers. There are multiple websites on the Internet that will allow you to do so, with ours being the best around. Our goal is to provide you with a quick and easy way to choose the policy that will meet your needs at the most affordable rates. In order to achieve this goal, you must educate yourself thoroughly so that you can understand what the requirements of Massachusetts are concerning vehicle insurance.

Massachusetts is a state that subscribes to a no fault system when it comes to dealing with vehicular collisions. Under the provisions of a no fault system, there is no one particular driver who is considered at fault in an accident. Each driver shares an equal amount of blame. Each motorist and their insurance company is responsible only for the medical expenses and property damage repair costs that they themselves incur. The average cost of an automobile insurance policy in Massachusetts in 2006 was $1,137. By comparison, the average national rate at the time was $860. A motorist can imagine how high the average cost of car insurance in 2009 would be.

There are three forms of car insurance that a motorist is required to maintain in Massachusetts in order to be able to operate a vehicle legally. These are liability insurance, uninsured motorist protection insurance, and personal injury protection insurance. Liability insurance is divided into two different categories, namely bodily injury liability protection and property damage liability protection. The former assists a motorist by covering the medical costs of other parties' bodily injuries in a collision for which they are considered responsible. This form of coverage will help provide you with a legal defense should another party from the accident attempt to sue you. While the scenarios that bodily injury liability will cover are detailed in your policy, the claims usually consist of the other parties' medical expenses, losses of income, or claims of pain and suffering. If you were ever to be involved in a serious collision, you would desire that your purchased policy limits would be large enough to cover a judgment that may be rendered against you in court. For this reason, it would be prudent for you to maintain equal monetary amounts of coverage on all the cars listed on your policy. Massachusetts requires its motorists to maintain a monetary minimum of $20,000, with a $40,000 limit per incident.

The second subsection of liability insurance is property damage liability. This works in a similar manner to bodily injury liability except that it assists in paying for the repairs another motorist's vehicle may suffer in an accident. Property damage is not restricted to vehicles only. It can also include damage to a person's home, business, mailbox, fence or even the lawnmower that you may potentially damage in an accident. You must maintain a monetary minimum of $5,000 for this coverage in Massachusetts. It may be advisable to consider purchasing additional amounts of this coverage if you do not feel that it would suffice to cover all the potential damages that could occur in an accident.

The second form of insurance required by Massachusetts state law in uninsured motorist protection (or UMI). This form of vehicle insurance is divided in two sub categories in similar to liability insurance; uninsured motorist property damage and uninsured motorist bodily injury. Each individual portion can be purchased separately or all together depending on what forms of coverage you desire. In Massachusetts, you are only required to maintain uninsured motorist bodily injury. The minimum coverage amount is set as $20,000, with a $40,000 limit per incident. In order for this form of insurance to activate, you must be in an accident in which the other driver is at fault. Said driver must not be insured or may be underinsured. Minus the deductible you selected during your policy purchase, your insurance provider will cover the cost of your medical expenses of repairs up to the amounts specified on your policy.

The third and final form of insurance you are required to maintain is personal injury protection insurance (or PIP). Personal injury protection insurance is a form of coverage that provides for lost wages, medical expenses, and other expenses that you or your passengers may incur in an accident. You will be covered under the coverage despite who may or may not have been at fault in the accident. PIP insurance has been defined as the assurance of "financial compensation to victims of motor vehicle accidents without regard to the fault of the insuree". You or your passengers' expenses will be covered up to the maximum amounts of insurance chosen on your policy. The minimum monetary amount of this coverage in Massachusetts is $8,000. Because the majority of motorists today are covered by comprehensive health insurance plans, many consumers do not elect to purchase more than the required amounts.

The coverage limits you select on your insurance policy should be sufficient to protect you financially. Now that you know the insurance requirements for Massachusetts, you should take stock of your assets. If the coverage you have on your policy is not enough to cover all the costs that other parties involved in an accident incur, you will be held financially responsible for the remaining balance. The tenements of a no fault system are designed to discourage motorists from suing one another in the court system. However, if the expenses incurred are high enough, an exception to this rule may be granted to the aggrieved party. If you are unable to pay the judgment rendered against you, a court system in Massachusetts has the legal right to force you to liquidate physical and financial properties in order for you to make restitution.

By thoroughly educating yourself about your insurance needs, you will be able to make wise choices when it comes to shopping around vehicle insurance. There are different forms of insurance available to you that offer further protection. If you own a vehicle with an outstanding balance on it, you will be required to maintain collision insurance. This form of coverage will pay to repair the damages your car may receive in an accident. The monetary amount that your insurance company will put forth toward repairs will not exceed your coverage maximum or the current market value of the car, whichever comes first. If you have questions or concerns about what your car insurance needs may be, do not hesitate to contact your insurance agent. He or she is a professional who thoroughly answer your questions and recommend solutions to your problems. In addition, an insurance agent knows the ins and outs of their company. They might be able to recommend discounts you may not know you're qualified for. While the world of car insurance may be expensive, it is possible for you to comply fully with the law while remaining in the confines of your budget.

 

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