Is Auto Insurance Mandatory Or Optional In Massachusetts
Reader’s Question:
I heard from my aunt that there are mandatory and optional car insurance policies in Massachusetts. What is a mandatory auto insurance policy? And what is the optional car insurance coverage? I am from Massachusetts.
Bettina
Framingham, MA
Massachusetts is a no-fault state. This means that if a person is involved in a car accident, regardless of whose fault it is, that person’s auto insurance company will automatically cover the damages depending on the limits on the policy.
The Massachusetts State has a mandatory auto insurance polices as follows:
1. for bodily injury to the other party: $20,000 for every person; $40,000 for every accident;
2. for bodily injury caused by a party that is not insured: $20,000 for every person; $40,000 for every accident;
3. for Personal Injury Protection (PIP) coverage that has a minimum required limit of $8,000; and
4. for damage to property with a required limit of $5,000
Those above mentioned polices are mandatory. According to the Massachusetts Division of Insurance the optional policies would include: increased limits both for bodily injury to the other party and bodily injured caused by an uninsured party; medical expenses coverage; collision policy; comprehensive coverage; substitute car’s coverage if your main vehicle is being repaired; and coverage for labor and towing in an event that your car broke down.
For more questions and information about auto insurance law in Massachusetts you can ask the MA Department of Insurance or even your car insurance agent.