Massachusetts Car Insurance: A Quick Guide to Car Insurance Policies for New Residents

Massachusetts is what is known as a no fault state. What this means is that in the event of an accident the driver who caused the accident is not held liable for the pursuant medical expenses and damages to the vehicle of the other driver involved; instead, each individual will be covered by their own insurance company. This was intended to decrease the number of lawsuits resulting from traffic accidents every year. Drivers carry PIP, or Personal Injury Protection, coverage to assist with medical expenses as well as lost wages or funeral expenses if necessary. A resident who possesses a good health insurance policy may choose to only purchase a minimum PIP policy.

There are exceptions to the no fault policy. If an injury is severe enough and medical costs excessive enough the injured party may petition for the right to sue the driver responsible. This has led to liability being required for all drivers as well. Liability will pay for the medical expenses of the driver and the repair costs of the other vehicle involved in the event that the insured is found to be legally responsible for payment of these expenses. The minimum level of liability in Massachusetts is twenty thousand dollars for medical expenses incurred by a single individual, forty thousand for the combined medical expenses of all of the occupants of the car at the time of the accident and five thousand dollars for any property damage resulting from the accident, including those damages suffered by the vehicle of the other driver. All drivers will be held responsible for any expenses in excess of their insurance policy; it is because of this that it is recommended that all drivers carry more than the minimum level of liability insurance.

While liability will cover damages to the vehicle of the other individual the driver responsible for the accident is generally held responsible for their own repairs. For this reason it is also recommended (but not required, unless the vehicle is under lien) that every driver carry comprehensive/collision insurance. This will cover any necessary repair following an accident and reimburse to the owner the cash value of the car in the event that the vehicle must be totaled.

MA is one of only five no fault states that has made it a requirement for all of their drivers to carry uninsured/underinsured motorist coverage in addition to their traditional liability and PIP coverage. Uninsured/underinsured motorist coverage will pay for any damages to either vehicle or person resulting from an accident involving the insured and another motorist who is either uninsured, underinsured and unable to pay the damages incurred or who leaves the scene of the accident (hit and run).

More information regarding auto insurance in MA can be obtained from the Division of Insurance, located in Boston, at their website, http://www.mass.gov/, or by calling their office at 617-973-8787.