Massachusetts Car Insurance Guide

Whether you’re heading over to Foxboro’s Gillette Stadium to cheer for the Patriots, doing business in Boston, on the revolutionary trail in Lexington, or vacationing on Cape Cod, there’s plenty of history, scenery and sports excitement in the Bay State. From Housatonic to Provincetown, Lowell to Dartmouth and all points in between, sightseeing or commuting, car insurance is crucial to being a responsible Massachusetts driver.

 

Auto Insurance Resources for MA State Residents

As of 2010, there were over 4.6 million licensed drivers in the Bay State. The Insurance Research Council estimates that 1% of Massachusetts’s drivers are uninsured, one of the lowest rates in the nation. The Massachusetts Registry of Motor Vehicles reported a total of 136,384 total vehicle crashes in 2008; 3,747 resulted in serious injuries, with 227 vehicle-occupant fatalities. At least 61 of the drivers involved in fatalities were under 21, and at least 120 of the victims were not using proper seat belt restraints. The potential of being in (or causing) a serious or fatal car accident is good reason to be sure you have enough car insurance while living and driving in the Bay State.

 

Massachusetts State Minimum Car Insurance

Massachusetts state law requires you to carry a minimum amount of car insurance or face severe penalties. Massachusetts is one of just 12 no-fault states, meaning your insurance will pay your injury claims up to a specified limit, regardless of who caused the accident. Under a no-fault system, you lose some of your rights to sue. While Massachusetts does not require that you carry additional personal liability or Collision and Comprehensive coverage, if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below:

• $20,000 bodily injury per person per accident
• $40,000 bodily injury for all persons per accident
• $5,000 property damage liability
• $20,000/$40,000 uninsured/underinsured motorist bodily injury
• $8,000 personal injury protection (PIP)

 

Massachusetts Car Insurance Laws

Massachusetts requires that you carry proof of Massachusetts auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. The penalty for driving without insurance in Massachusetts is a minimum of $500, up to a maximum of $5,000. You may also face up to 1 year in jail, instead of or in addition to the fine. Your license may be suspended for 60 days, along with your license plates and vehicle registration.

If you are convicted of being uninsured, you will be held liable for an amount greater than $500 or 1 year’s compulsory car insurance premium at the highest rate in effect when you committed the offense.

In order to register a vehicle in Massachusetts, you need to have an active policy stamped by a licensed Massachusetts insurance agent, who must also sign the RMV-1 application. You have to take all of this with you to the RMV before they will register your car.

 

Regulating Agency and References

Massachusetts Division of Insurance
This is agency is responsible for regulating vehicle insurance policies sold in Massachusetts. For more information, visit their website at www.mass.gov

Massachusetts Department of Transportation/Registry of Motor Vehicles
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about Massachusetts auto insurance requirements, penalties and related information at http://www.massdot.state.ma.us/rmv/

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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