No Fault Auto Insurance in Massachusetts
Reader’s Question:
I heard that auto insurance in Massachusetts fall under the no fault system. I need to have some information regarding this because I am about to purchase my first car.
Samson
Cambridge, MA
You are correct that auto insurance in Massachusetts function under the no fault auto insurance system. This is the system which the state of Massachusetts, along with 11 other states (Florida, New Jersey, Michigan, New York, Kansas, Hawaii, Pennsylvania, North Dakota, Utah, Kentucky and Minnesota) and Puerto Rico, have in answer to the numerous problems of the traditional tort system.
Although, at first, you may think that it automatically means that motorists are covered in an accident regardless of who is at fault, I am afraid that this is not the case. What the no fault auto insurance system means that it is mandatory according to the laws of the state to be provided with personal injury protection (PIP) benefits, and at the same time be only allowed to sue under certain conditions.
What are these conditions? They are normally referred to as thresholds. The states of Florida, New Jersey, Pennsylvania, New York and Michigan have verbal thresholds. Massachusetts, along with Kansas, Hawaii, Minnesota, North Dakota, Utah and Kentucky, has a monetary threshold. But in New Jersey, Kentucky and Pennsylvania, drivers may still have the right to sue for any vehicle-related injuries because they function under the “choice” no fault system.
Anyway, under the no fault law in Massachusetts, motorists may only be able to sue for damages if the severity of damages exceeds the specified lawsuit monetary threshold. It is in the same way that you are protected from being sued. So, basically, if you involve yourself in an accident, your auto insurance provider shall cover for all the payments if it does not exceed the specified limit. You will also not be allowed to sue the other party if the amount of damages and losses does not exceed the specified monetary limit.
To get more information, you should go to Massachusetts’ Department of Motor Vehicles Web site.