Mas Auto Insurance: The Evolution Of Their Rating System

The Massachusetts Safe Driver Insurance Plan (SDIP) is a rating system that rewards safe drivers with lower premiums and encourages drivers with a high SDIP score to practice safer driving by requiring them to pay a higher insurance premium. The SDIP plan is overseen by the Merit Rating Board of Massachusetts, which collects and reports auto insurance claims and traffic law violations. Accidents and violations are the two types of incidents that will cause points to be applied to a driver's license, with the amount of points assessed depending on the severity of the incident. The more points a driver has, the higher their insurance premium will be.

Merit Rating Board of Massachusetts and the Safe Driver Insurance Plan (SDIP)

The Merit Rating Board of Massachusetts oversees the Safe Driver Insurance Plan (SDIP) program, which was created in 2006 to replace the old "Step Based" plan used before competitive auto insurance came to Massachusetts. The SDIP is a point-based system that lowers rates for good drivers and increases rates for unsafe drivers. It also allows for the exchange of information on insurance claims.

The Merit Rating Board has designed the SDIP to reward safe drivers while encouraging drivers with a high SDIP score to practice safer driving by requiring them to pay a higher insurance premium. Accidents and violations are the two types of incidents that will cause points to be applied to your license, and the number of points assessed depends on the severity of the incident. The schedule of surcharge points is as follows:

• Minor Traffic Violation (Speeding, etc.)
• Minor At-Fault Accident (claim over $500, under $2,000)
• Major At-Fault Accident (claim over $2,000)
• Major Traffic Violation (DUI, reckless driving)

The more points you have, the higher your insurance premium. Points can accumulate quickly, and every incident increases the number of points on your record. Having points on your record increases the premium paid for four coverages in your policy: Compulsory Bodily Injury (part 1), Personal Injury Protection (part 2), Damage to Someone Else's Property (part 4), and Collision (part 7).

Drivers with at least five years of driving experience and no surchargeable incidents, or exactly one non-criminal traffic violation (such as speeding) that is over three years old, will receive the "98" rating and the Excellent Driver discount. Drivers with six years of clean driving experience will receive a "99" rating and the Excellent Driver Discount Plus, which is the best discount available on auto insurance in Massachusetts.

Most auto insurance carriers in Massachusetts follow the 6-year surcharge model, but some companies only surcharge for accidents or violations that have occurred in the last three years. If you have old tickets or violations, it may be worth contacting your agent to see if there are other companies better suited to your driving record and needs.

Accidents and violations that cause points on your license

The accumulation of points on your driving record can have various repercussions, including increased insurance premiums and license suspension or revocation. The number of points added to your license depends on the severity of the violation. Minor violations like speeding or running a red light are typically assigned fewer points than major offenses like driving under the influence (DUI) or hit-and-run accidents. For example, in California, speeding tickets can result in one point, while a DUI will lead to two points.

• Speeding: Exceeding the speed limit can result in points, with the number of points depending on how much you exceed the limit. For example, in California, speeding by 1-15 mph will result in one point, while speeding by 16-25 mph will result in two points.
• Reckless driving: This can include excessive speeding, aggressive driving, running red lights or stop signs, evading law enforcement, or street racing. In California, reckless driving carries two points.
• Failure to obey traffic signs or signals: Running a red light or stop sign will typically result in one point.
• Driving under the influence (DUI): Driving while impaired by alcohol or drugs is a serious offense and will result in points on your license, as well as potential legal consequences. In California, a DUI will result in two points.
• Failure to yield: Failing to yield to pedestrians or other vehicles can result in one point.
• At-fault accidents: If you are found to be at fault in an accident, you may receive points on your license. The number of points can depend on the severity of the accident, with more points assigned for accidents involving injuries or death. In California, an at-fault accident with property damage over $1,000 will result in one point, while an accident with injuries or death will result in two points.
• Texting and driving: In some states, such as California, texting while driving can result in points on your license.
• Hit-and-run accidents: Leaving the scene of an accident without providing the required information is a serious offense and will result in points on your license. In California, a hit-and-run accident is considered a two-point violation.
• Drag racing and speed contests: Participating in drag races or speed contests is illegal and will result in points on your license. In California, this offense carries two points.

It's important to note that the point system and the number of points assigned to each violation can vary from state to state. Additionally, some states, such as Hawaii, Kansas, Louisiana, Minnesota, Oregon, Rhode Island, Texas, and Wyoming, do not use a points-based system but may suspend licenses for certain violations.

Minimum insurance requirements in Massachusetts

In Massachusetts, drivers are legally required to have car insurance. The minimum coverage requirements are:

• Bodily Injury to Others: $20,000 per person and $40,000 if more than one person is hurt. This covers you or someone you allow to drive your car from legal liability if you accidentally injure or kill someone while operating your car. It only covers losses if the accident occurs in Massachusetts and does not cover the injury or death of a passenger in your car.
• Personal Injury Protection (PIP): Covers medical expenses, up to 75% of lost wages, and replacement services up to a limit of $8,000.
• Bodily Injury Caused by an Uninsured Auto: $20,000 per person and $40,000 total for all people injured by the uninsured auto in the accident.
• Damage to Someone Else’s Property: A minimum limit of $5,000.

Massachusetts is a no-fault state, which means that no matter who causes the accident, personal injury protection will pay these expenses for you, anyone you let drive your car, anyone living in your household, passengers in your vehicle, and pedestrians.

While these are the minimum insurance requirements in Massachusetts, many insurance experts recommend raising your coverage limits. Minimum coverage policies can leave you financially vulnerable and do not cover damage to your vehicle after an accident for which you were at fault, or damage caused by weather events, theft, or vandalism.

Discounts and benefits offered by Massachusetts auto insurance companies

Massachusetts auto insurance companies offer a variety of discounts and benefits to their customers. Some of the most common discounts include:

• Multi-car discount: This is when you have more than one car on your policy.
• Paid-in-full discount: Offered to eligible drivers who pay their premium upfront.
• Student away at school discount: If you have a student who doesn't regularly use the car(s) on your policy, you may be eligible for this discount.
• Homeowner's discount: You can save on your car insurance by bundling it with your home insurance policy.
• Safe driver discount: Drivers with a clean driving record for a certain number of years can receive a discount. The number of years and specific criteria vary by company.
• Group discount: If you're a member of a particular group, company, or organization, you may be eligible for a group discount.

In addition to these, Massachusetts auto insurance companies also offer various benefits to their customers. For example, Plymouth Rock offers a sports affinity program, which includes exclusive access to tickets and other perks for the Boston Bruins, Boston Red Sox, and New England Patriots. They also offer a safe driving program called Road Rewards, where you can download an app, drive safely, and earn rewards.

When shopping for auto insurance in Massachusetts, it's important to ask about potential discounts and benefits, as they can significantly impact your premium. It's also a good idea to obtain quotes from multiple insurance companies and compare the coverages, limits, deductibles, and discounts offered by each.

Required auto insurance in Massachusetts

In Massachusetts, drivers are legally required to carry a minimum amount of car insurance coverage before getting behind the wheel. Proof of insurance must be carried at all times while driving and must be shown to law enforcement officials when requested. The minimum insurance requirements in Massachusetts include certain levels of bodily injury liability, property damage liability, uninsured motorist bodily injury, and personal injury protection (PIP). This is because Massachusetts is a no-fault state, meaning that your insurance will pay for your damages regardless of who is at fault, up to the limit of your policy.

• Bodily Injury Liability: $20,000 per person and $40,000 per accident. This covers injuries to others if you are at fault in an accident.
• Property Damage Liability: $5,000 per accident. This covers damage to another person's property if you are at fault.
• Uninsured Motorist Bodily Injury: $20,000 per person and $40,000 per accident. This protects you if you are hit by a driver with no insurance or not enough insurance.
• Personal Injury Protection (PIP): $8,000 per accident. This covers medical expenses, lost wages, and replacement services for you or anyone you allow to drive your car, anyone living in your household, passengers in your vehicle, and pedestrians.

It is important to note that these are the minimum coverage requirements, and purchasing only the minimum coverage can leave you financially vulnerable. Many insurance experts recommend raising your coverage limits and purchasing additional types of coverage to ensure you are adequately protected in the event of an accident.

Massachusetts also has a Safe Driver Insurance Plan (SDIP) that rewards safe drivers with lower premiums and encourages drivers with a high number of points (accidents or violations) to practice safe driving by requiring them to pay a higher insurance premium. The more points you have, the higher your insurance premium will be. Points can accumulate quickly, and every incident increases the number of points on your record.

Frequently asked questions