Auto Insurance
The Basics
If you own a vehicle in the state of Massachusetts, you are required to carry Auto Insurance on that vehicle. The Massachusetts Personal Auto Policy is a policy that provides auto liability, personal injury protection, uninsured motorist and physical damage coverages, among others.
The Coverage Parts
A typical Massachusetts Auto Insurance Policy has many different sections of coverage, not all of which are mandatory. Most likely, one’s policy would include the following coverage parts:
Section I – Compulsory Coverage (mandatory)
1. Part 1 – Bodily Injury To Others
This coverage part pays for damages (medical expenses, pain and suffering) to anyone injured or killed by your car, occurring in Massachusetts. Injuries to the driver or passengers in your car are not covered under this part.
2. Part 2 – Personal Injury Protection (PIP)
This coverage part pays up to $8,000 to you or anyone you let drive your car, anyone living in your household, passengers or pedestrians, no matter who causes the accident. This part pays for medical expenses, replacement services and 75% of any lost wages. Regarding medical expenses, it pays for expenses in excess of $2,000 that are not paid for by your medical insurance, assuming the expenses are approved.
3. Part 3 – Bodily Injury Caused By An Uninsured Auto
This coverage part extends your liability coverage up to the amount you purchase. This part provides coverage for accidents outside Massachusetts, including the United States, its territories and possessions. This part also pays for damages suffered by guests in your auto.
4. Part 4 – Damage To Someone Else’s Property
This coverage part pays for damage to another person’s property and other costs associated with the loss of use of that property, when you, a household member or another authorized driver causes an accident.
Section II – Optional Insurance Parts (optional)
1. Part 5 – Optional Bodily Injury To Others
This coverage part extends your liability coverage up to the amount you purchase. This part provides coverage for accidents outside Massachusetts, including the United States, its territories and possessions.This part also pays for damages suffered by guests in your auto.
2. Part 6 – Medical Payments
This coverage part covers medical expenses for you, your household members and passengers over and above amount covered by PIP, no matter who caused the accident.
3. Part 7 – Collision
This coverage part pays for collision damage to your car, minus the deductible, no matter who causes the accident. When buying collision coverage, the “Waiver Of Deductible” feature is recommended. This feature waives the deductible if the accident is not found to be your fault.
4. Part 8 – Limited Collision
This coverage part also pays for collision damage to your car. In order for this part to pay, you must not be more than 50% at fault in the accident and the other vehicle must be identified (hit and run is not covered).
5. Part 9 – Comprehensive
This coverage part pays for damage to or loss of your car, minus the deductible, resulting from things like fire, theft, vandalism, and striking an animal. Personal property stolen from your car is not covered unless it is permanently installed in your car, such as a CD player.
6. Part 10 – Substitute Transportation
This coverage part reimburses a set amount per day, up to a certain limit, for the use of a rental car, taxi, bus, or train fare, while your car is undergoing collision or covered repairs.
7. Part 11 – Towing and Labor
This coverage part pays a set amount for towing and labor charges each time your car breaks down whether or not an accident has occurred. You are only covered for the on-site labor costs at the breakdown site (not any parts) needed to get your car running and operable again.
8. Part 12 – Bodily Injury Caused By An Underinsured Auto
This coverage part pays for bodily injury damages to you, household members and passengers, unless they have a policy of their own, or are covered by another Massachusetts automobile policy of another household member with similar coverage. The accident must be caused by someone without enough bodily injury coverage.
