Auto Insurance

Laws

Massachusetts is a no fault state, which means that every driver must carry personal injury protection (PIP) coverage. In the event of an accident this policy provides for some of the holder's expenses, regardless of who was at fault in the accident.

In Massachusetts, the required PIP coverage is $8,000 per person, although some drivers may choose to lower their premium by applying a deductible to the coverage. No fault laws eliminate your right to sue the other driver for damages unless he cost of injuries exceeds your coverage.

Massachusetts auto insurance laws also require standard liability coverage, in the amount of 20/40/5. (That's $20,000 per person for injuries you cause to the other party, up to $40,000 for all, and $5,000 for any damage that you cause to the other driver's car and/or property.).

Finally, Massachusetts auto insurance laws require uninsured motorist bodily injury coverage. The minimums on their coverage are 20/40, ($25,000 per person injured, up to $50,000 total). This policy helps cover the cost of your injuries should you be in an accident with a driver without liability insurance.

Massachusetts auto insurance companies will also offer optional coverages such as medical payments, collision and comprehensive.

How Car Insurance Rates are Set

For better or for worse, the price of Massachusetts auto insurance is decided by the behavior of the state's drivers as a whole. Massachusetts auto insurance companies take the cost of providing insurance for Massachusetts drivers (this includes settlements and legal fees) and divide it up among the drivers.

But the cost isn't spread around evenly. Instead, the percentage you pay is decided by things like your driving record, your age, where you live, and the kind of car you drive.

Of course, not all insurance companies compute their figures in the same manner. This means that they will charge different rates on the same driver.

What this means for you as a driver, is that you need to shop the different rates. When shopping your insurance needs, always compare the same coverage and term of policy.

Fortunately, shopping around is easy to do online because one good service will give you several competing quotes.