Massachusetts Insurance

Reader’s Question:

I recently moved to Boston. I’m not very knowledgeable with auto insurance in Massachusetts. Is it a no fault state or is it a tort state? Also, could you please tell me more about their mandatory and optional coverage?

Kim

Boston, MA

Most people think that shopping for auto insurance policies in Massachusetts is difficult, The state may have strict rules with regard to auto insurance, but I do not see problem with that, especially if you’re talking about the safety of yourself, your personal belonging, your family and the people around you who could get involved in any car accident. Most insurance companies don’t like the way the state sets the rate yearly and dictates the price, but this is good for people as insurers won’t be able to manipulate insurance rates.

Massachusetts is a no-fault insurance state, wherein your insurance company makes the payment regardless of whose fault it is but with a specified limitations. The state requires a minimum amount of auto insurance of $20K per person for a total of $40K per accident of Bodily Injury Liability, and Property damage with a minimum of $5K also known as 20/40/5 coverage. Another required element is the Personal Injury Protection, which requires a minimum coverage of $8K. Uninsured motorist and bodily injury caused by an uninsured car is another compulsory element in auto insurance in Massachusetts with a minimum coverage of $20K per person and $40K per accident required. There are also eight optional coverage (examples are medical payments, collision, limited collision, etc), which your agent will surely be happy to explain further.

Reader’s Question:

What does a beginner driver need to know about Massachusetts auto insurance?

Tara

Boston, MA

Massachusetts is one of several American states that have adopted the no-fault policy. In the unfortunate event of a car accident, the motorists involved can immediately be recompensed through their own auto insurance policy. This type of auto insurance policy, known as Personal Injury Protection (PIP), is the foremost requirement mandated by the state for its resident motorists. By using the no-fault policy, the state has cut back on the number of litigations that result from car accidents every year. Since PIP is not dependent on who will be declared responsible for causing the accident, motorists no longer have to wait for the resolution of tedious legal proceedings in order to receive benefits. Such benefits can help in the expenses for much-needed medical treatment and can also recompense lost wages or even funeral expenses if the need arises. PIP can work well in tandem with one’s health insurance. In fact, most motorists who already have a good health insurance policy purchase only the minimum coverage of PIP.

The no-fault policy, however, accommodates certain exceptions. There are cases when the injuries caused by a car accident can be quite severe. The resulting medical expenses can turn out to be high enough to exceed auto insurance coverage limits. When this occurs, the injured party can file a lawsuit against the one responsible for the accident, to sue him or her for injuries and damages. Thus, liability coverage is also a requirement in this state. The minimum limits for liability in Massachusetts are $20,000 for the medical expenses of a single driver, $40,000 for the combined medical expenses of all occupants in the vehicle (if there was more than one), and $5,000 for property damage.

Reader’s Question:

Hi, I’m a 61-year-old retired teacher. I just bought a 1993 Honda Civic and moved to this place three months ago. I was wondering: How much would auto insurance in Massachusetts cost me?

Dennis

Springfield, Massachusetts

Hi, Dennis. In these times of financial uncertainty, the cost of auto insurance in Massachusetts has gone past the $1,000 mark. However, the cost of insurance will depend on a lot of factors. For example, being a senior citizen not above 65 means you are viewed by auto insurance companies as a low risk driver, and therefore they will give you a cheaper price for auto insurance (however, rates go up if your age is past 65 or 70). Some companies will offer discounts also to car owners that have white-collar jobs. Your driving record also will matter. “Good” drivers are charged lower premiums while drivers with DUI records are charged insanely high auto insurance costs.

Where you live will also be taken into account in auto insurance costs. In Springfield, for example, the average travel time is about 30 minutes. The heavier the traffic you have in your area, the greater the chances of a car accident. Where you park your car will also be a factor especially at night. If you live in a neighborhood that is not safe, your car insurance costs are bound to increase. Your car (1993 Honda Civic) is also included in the top ten lists of cars stolen in the Massachusetts area, so even if it is less expensive, if your car is easily stolen, then that will be factored into auto insurance costs.

The best way to find the lowest auto insurance available is to compare rates online. Go to the top insurance companies, and they will give you a precise quote on your auto insurance. Some even offer online chat service, where you can get advice from car insurance agents on how to lower your premium.

Tags: auto insurance online, auto insurance premium, Car Insurance Company, car insurance cost, senior car insurance

Reader’s Question:

If I get involved in a car accident outside my state, will my Massachusetts auto insurance provide me with coverage?

Richard

Boston, MS

Most auto insurance companies in the State of Massachusetts do not provide coverage to their policyholders if they get in a car crash outside of the state. It is then very important to read your Massachusetts auto insurance policy thoroughly and discuss this possible issue with your local insurance agent. In most cases, to have coverage when driving outside your home state, you would need to obtain Optional Bodily Injury to Others. This is a type of liability insurance that extends coverage to a driver who may be operating a motor vehicle anywhere in the United States and Canada. This coverage also shoulders the costs incurred for medical treatments of guest passengers in your car. Since medical care and car repair costs are gradually increasing, there is a more than even chance that the minimum liability coverage you are carrying may not be enough to cover the expenses of the other party. If that turns out to be the case then the other motorist has every right to file a lawsuit against you in order to collect for the remaining costs. This can happen even in a no fault state. It would then be very sensible to purchase higher Bodily Injury to Others coverage limits especially if there are properties and other assets you wish to safeguard.

Tags: auto insurance coverage, auto insurance policy, Car Insurance Company, liability insurance