If you’re based in Massachusetts and your insurance service refuses to fulfill state requirements, you can log on to the state website and file a complaint against them. Similarly, if you don’t have the required coverage, you might fall on the wrong side of the law and get into trouble.
How do you make sure that both you and your insurance service are compliant with state regulations?
The answer is simple: by understanding what car insurance in Massachusetts entails.
There are three components of car insurance policies. Let’s look at each:
This coverage option helps you pay for bodily injuries and damages that you cause to another party during an accident. There are two different components of liability insurance.
Bodily injury liability helps you pay medical expenses if someone is hurt or injured during an accident. On the other hand, property damage liability helps you pay for the damage caused to someone’s property—including their car. This may include the cost of paying the mechanic who will repair the car as well.
The minimum required limit for this type of coverage is $20,000 per individual and $40,000 per accident. Any cost incurred beyond this limit will not be borne by the company, unless you pay for extra coverage.
Personal injury protection is also known as PIP. While liability insurance helps you pay for damages caused to another party, this is for damage the accident caused to you or your car.
In case of an accident, PIP also covers the other passengers who were in your car at the time of the accident. It may also help you pay for funeral costs if someone passes away as a result of the accident. In Massachusetts, the minimum requirement for this coverage is $8,000 for both each accident and individual.
Even if your car is insured, there will be plenty of others on the road that might not carry auto insurance. If one of the cars crashes into yours, they might not have the money to pay for your medical expenses and damages. In this case, you need uninsured motorist coverage to protect you. This coverage pays for your medical expenses if the accident was caused by an uninsured driver.
Another closely related coverage category is underinsured motorist coverage, also known as UIM coverage. This comes in handy if the driver’s insurance isn’t enough to pay for the damages. The minimum requirement is again $20,000 per person and $40,000 per accident.
The limits indicate that your insurance company will not pay any amount that exceeds this limit. These are basic and mandatory coverages. However, you’re free to opt for other optional coverages such as those that cover collisions. You can even buy coverage beyond the minimum limits to cover serious accidents. These include comprehensive insurance and collision insurance.
Western Mass Auto Insurance is proud to be fully compliant when it comes to state regulations. Get in touch with our auto insurance agents Indian Orchard.