Massachusetts Insurance

Reader’s Question:

I miss the days when it was the state that determined the premiums for auto insurance in Massachusetts. It is a headache now that I have to sift through all the paperwork!

Madeleine.

Boston, MA

While it was convenient for insurance companies and the general public alike when the state fixed premium charges on auto insurance in Massachusetts, it was not cost effective, either. It used to be that people pay the same premiums depending on which rate category he or she belongs to. This was rather unfair for insurers, especially when the driver is high risk.

If you think about it, it is quite unfair for the consumer too. There will be people who would be shortchanged by the fact that no matter how safe they are, how clean their driving records is, or even if they do not need some of the coverage being offered, they would have to pay for it.

Fortunately, auto insurance in Massachusetts is now moving towards managed competition, thereby giving consumers more flexibility and more chances to save.

To make it easier for you, the State of Massachusetts has a set compulsory coverage for auto insurance. These include coverage of:

• $20,000 per son for bodily injuries;
• $40,000 per accident for bodily injuries of all persons involved in the accident;
• $8,000 for personal injuries; and
• $5,000 for damages to property.

All the other insurance types are optional. Take note, however, Massachusetts ranks among the highest in terms of property damage claims and injury claims in the country, even as it follows a no-fault system. Therefore, it is advisable to take out additional insurance coverage.

Here are some tips to save on auto insurance:

• Shop around for the best coverage at the best price. This includes ensuring that you only pay for the coverage you need.
• Ask for discounts. Senior citizens often have a special discount for auto insurance premiums.
• Try to get a group policy.
• Drive safely and maintain a clean driving record.
• Get a good anti-theft device for your car.