Massachusetts Auto Insurance Law: Understanding The Requirements

Massachusetts requires its drivers to carry car insurance. To register a vehicle with the Registry of Motor Vehicles (RMV), you must show proof of insurance. All drivers in Massachusetts must carry a minimum amount of liability and uninsured motorist coverage. The minimums set by Massachusetts law include $20,000 for bodily injury liability per person and $40,000 per accident, as well as $5,000 for property damage liability per accident.

Minimum insurance requirements

In Massachusetts, car insurance is mandatory for all vehicles registered to operate in the state, except for mopeds with a maximum speed of under 30 mph. As a driver, you must carry proof of insurance in your car at all times. The penalties for violating this law can be severe, ranging from a $500 fine to a year in jail for a first offence.

Massachusetts law requires a minimum of four types of coverage:

Personal Injury Protection (PIP)

This coverage pays for medical expenses, replacement services, and 75% of lost wages for you or anyone you allow to drive your car, anyone living in your household, passengers in your vehicle, and pedestrians. The minimum limit is $8,000 per person, per accident.

Damage to Someone Else's Property

Also known as Property Damage, this coverage pays for damage to another person's property when you, a household member, or another driver you authorise causes accidental damage. The minimum limit is $5,000 per accident.

Bodily Injury to Others

This coverage protects you or someone you allow to drive your car from legal liability if you accidentally injure or cause the death of someone else 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. The minimum limit is $20,000 per person and $40,000 if more than one person is hurt.

Bodily Injury Caused by an Uninsured Auto

This coverage protects you, anyone you let drive your car, household members, and passengers (who are not covered under another Massachusetts policy) against losses caused by an uninsured or unidentified ("hit and run") driver. The minimum limit is $20,000 per person and $40,000 total for all people injured by the uninsured auto in the accident.

It is important to note that these minimum coverage limits may not be sufficient in the event of a serious accident, and most drivers choose to purchase additional coverage to protect themselves financially.

No-fault insurance

In Massachusetts, car insurance is a requirement for all vehicles registered to operate in the state. This means that drivers must carry proof of insurance in their cars at all times. The penalties for violating this law can be severe, ranging from a $500 fine to a year in jail for a first offence.

Massachusetts is one of 16 states that follow some form of a "no-fault" car insurance system. No-fault insurance, sometimes referred to as Personal Injury Protection (PIP) insurance, covers medical expenses and loss of income in the event of a covered accident, regardless of who is at fault. This means that if you're injured in an auto accident, you would file a claim with your own insurance company to pay for related medical costs, regardless of who caused the accident.

In no-fault insurance states, drivers are typically required to have a minimum amount of PIP coverage to ensure they have sufficient coverage if they're injured in an auto accident. This coverage is in addition to other types of auto coverage, such as Bodily Injury and Property Damage.

In Massachusetts, the minimum limit for PIP coverage is $8,000 per person, per accident. This coverage pays for medical treatment and other out-of-pocket losses incurred by anyone covered under the policy, up to the coverage limits. It's important to note that PIP coverage only applies to medical expenses and lost wages, while other types of coverage, such as Collision and Comprehensive, may be needed to cover damage to your vehicle.

The purpose of the no-fault law in Massachusetts is to streamline the administration of car accident claims and avoid court congestion by reducing the number of lawsuits associated with smaller injury cases. This system allows individuals to recover medical expenses, lost wages, and replacement services up to a certain limit, regardless of who is at fault for the accident.

Penalties for driving without insurance

In Massachusetts, driving without insurance is considered a criminal misdemeanor and a civil motor vehicle infraction (CMVI). The penalties for driving without insurance in the state can be severe and vary depending on the circumstances and the number of offenses. Here are the penalties you may face if caught driving without insurance in Massachusetts:

First Offense:

• Fine: You may be required to pay a fine ranging from $1,000 to $5,000 or more. There is also an additional fee of at least $500 payable to the Massachusetts Automobile Insurance Plan (MAIP), the state's residual auto insurance pool.
• Jail time: You could face up to 12 months in jail, although this is less likely for first-time offenders.
• License suspension: Your driver's license could be suspended for 60 days, and you will need to pay a $500 reinstatement fee to get it back.
• Late and filing fees: If you don't respond to a citation within 20 days, you will be charged a $45 late fee. If you choose to dispute the charge and request a hearing, there is also a $25 filing fee.

Second and Subsequent Offenses:

• Fine: For a second offense, the fine can be as high as $5,000.
• Jail time: You may face up to one year in jail for a second offense.
• License suspension: Your driver's license and registration will be suspended for one year, and you will need to pay a $500 reinstatement fee.
• Late and filing fees: The same late and filing fees as the first offense apply.
• MAIP fee: Similar to the first offense, you will need to pay the larger of $500 or one year's insurance premium for compulsory coverage to the MAIP.

It's important to note that law enforcement officers in Massachusetts can request proof of insurance during a traffic stop or at the scene of an accident. Additionally, the Massachusetts Registry of Motor Vehicles (RMV) maintains an electronic database and will be notified by your insurance company if your policy lapses or is canceled.

Optional insurance coverage

While there are four types of compulsory insurance coverage in Massachusetts, there are also optional insurance coverages that drivers can choose to purchase. These optional coverages can provide additional protection and benefits that are not included in the compulsory coverages.

One example of optional insurance coverage is comprehensive coverage, which protects your car from damage not related to a collision with another vehicle. This includes natural disasters, fires, vandalism, and damages caused by hitting an animal. Another type of optional coverage is collision insurance, which covers the cost to repair or replace your car after a collision with a stationary object or another vehicle. It's important to note that collision insurance does not cover damage to other vehicles involved in the accident; separate property damage liability coverage is needed for that.

Other optional coverages include uninsured and underinsured motorist coverage, which can provide compensation for the cost of repairing your vehicle or paying for your medical costs if you are in an accident with an uninsured or underinsured driver. You can also opt for coverage for substitute transportation, such as a rental car, while your car is being repaired after an accident. This coverage typically has daily and maximum limits, such as $15 per day up to a maximum of $450.

Additionally, you may want to consider medical payments coverage, which provides reasonable expenses for necessary medical and funeral services for anyone occupying your vehicle or if you or a household member is struck by a vehicle. The limits for this coverage can range from $1,000 up to $25,000. Loan/lease gap insurance is another optional coverage that can help if your car is totalled and the cost of repairing it exceeds its actual cash value. This type of insurance will cover the difference between the actual cash value of your car and the remaining balance on your loan or lease.

When deciding whether to purchase optional insurance coverages, it's important to consider your personal needs and financial situation. These coverages can provide additional protection and peace of mind, but they will also increase your premium. Consult with an insurance agent or professional to determine which coverages and amounts are right for you.

Lowering your premium

Massachusetts drivers can lower their auto insurance premium by shopping around, driving safely, choosing appropriate coverage, and taking advantage of discounts.

Shopping Around

Insurance companies are not identical, so it is important to obtain information from more than one company. Drivers can obtain quotes directly from an insurance company or through agents. Agents may represent one or more insurance companies, so it is a good idea to work with multiple agents to obtain a variety of quotes.

Driving Safely

An incident-free driving history will always result in a lower premium. Driving safely and keeping a clean driving record will reduce your automobile insurance premium regardless of the company you choose.

Choosing Appropriate Coverage

Drivers can often lower their premium by thinking about which optional coverages they really need and the level of coverage that best fits their situation. For example, if you have a car of low dollar value, you may not want to buy Collision or Comprehensive coverage unless your lender requires it.

Taking Advantage of Discounts

Insurance companies offer a variety of ways to reduce your premium. While some discounts are required by law, such as for drivers who are 65 years or older, companies may have other savings tied to driver-training, multiple cars on the same policy, or other factors that reduce either the risk or extent of injuries or damage.

Frequently asked questions