Most Common Types of Car Insurance

If you have just bought a new/used car or are looking to get one in the next couple of months, now would be a good time to think about car insurance. There are several types of car insurance policies in Massachusetts that drivers can buy based on their needs and whether or not they are going to finance their vehicle.

Here, we take a look at the different car insurance policies that users can get in the State of Massachusetts.

Massachusetts Mandatory Car Insurance

The State of Massachusetts has made it mandatory that drivers must get certain types of auto insurance for their vehicle. These include the following. The Massachusetts auto policy has 12 parts, Parts 1-4 are required by law.

Bodily Injury Policy

The bodily injury policy provides coverage for any injuries caused to a person due to your driving. The minimum coverage required by the State is $20,000 per person and $40,000 per accident. Bodily Injury parts on the policy are parts 1, 3, 5, and 12.

Property Damage Insurance

This type of auto insurance policy provides coverage for any property damage that you cause in a car accident. Property damage is covered under Part 4 of the Massachusetts auto policy. The minimum amount of mandatory car insurance for property damage is $5,000. There is no maximum amount of property damage insurance and you can buy as much insurance as you want such as $100,000 or higher.

Personal Injury Protection (PIP)

This is Part 2 of the Massachusetts auto policy. PIP covers you for any medical expenses that you would need in case of an accident up to a specified amount. You are covered for this amount regardless of who causes the accident.

The minimum mandatory limit of PIP insurance is $8,000. In Massachusetts, you may also claim a benefit up to 75% of income lost due to the accident. The maximum amount you can claim under PIP is $8,000.

Additional Types of Auto Insurance in Massachusetts

Apart from the mandatory auto insurance policies that every driver is required to get, drivers can also get additional car insurance coverage’s outlined below if they also get coverage that covers the vehicle itself ie. Part 7 and/or Part 9.

Roadside Assistance and Towing Insurance

Roadside assistance  (Part 11) can be added on to your car insurance policy for a few extra bucks. Depending on the company this part can include fuel delivery in case you run out of fuel and battery jump starts for a dead battery. Also, depending on the policy, your insurance company may offer a towing facility for moving your vehicle to the nearest service station.

Rental Car

You can add Rental car coverage (Part 10) to your car insurance policy for a little extra cost. The rental car would be available to you for use while your vehicle cannot be driven due to ongoing repairs – only for an insurance claim.

Gap Insurance

Gap insurance covers the cost of your vehicle’s value depreciation over time. For instance, suppose that you bought a new vehicle for $30,000 last year and it gets stolen one year later. If you are financing the vehicle, the insurance company might say that the value of your vehicle, after one year’s depreciation, is $24,000 yet you owe the finance company $28,000 – your Gap insurance would cover this difference and pay off the lien holder in full.

To further discuss these options or to get a great price on your auto insurance please contact Western Mass Auto Insurance at 413-543-3800. Or simply stop in to one of our two convenient locations to speak with one of our professionals.

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