What is car insurance?
Every driver who gets behind the wheel assumes at least some risk of an accident, and damage to a vehicle can also occur when it’s parked. When something happens (and it likely will eventually), car insurance can give Massachusetts drivers valuable protection.
Car insurance generally provides financial protection if a driver is in an accident. Policies may cover other instances of damage to a vehicle, too.
Who in Massachusetts needs to have auto insurance?
Stat law generally requires drivers on public roads in Massachusetts to carry auto insurance. Coverages in addition to the state’s requirements are broadly recommended.
The basic requirements that the state mandates are fourfold:
- Property Damage Liability Coverage of $5,000 an accident
- Personal Injury Protection (PIP) of $8,000 a person
- Bodily Injury Liability Coverage of $20,000 a person and $40,000 an accident
- Uninsured Auto Coverage of $20,000 a person and $40,000 and accident
Drivers who have an outstanding lien against their vehicle are usually also required to carry comprehensive coverage, collision coverage and gap coverage. This isn’t a state requirement, but lenders often require these coverages so that the vehicle is insured against damage.
An insurance agent who specializes in auto policies will make sure drivers get all of the coverages they’re required to, and any additional ones that they also deem worth carrying.