Massachusetts car insurance laws
Like most states, Massachusetts requires its drivers to carry car insurance. If you’re shopping for coverage, be aware that any policy you purchase in Massachusetts must offer the minimum amount of coverage required by law. However, most financial experts agree that carrying more coverage offers you better financial protection. To help you make sense of Massachusetts car insurance laws and determine if you have the coverage that’s right for you, Bankrate’s insurance editorial team put together this in-depth guide. We’ll explain the different types of coverage, go over the minimum limits required and give tips on how to save on your insurance premium.
What auto insurance is required by law in Massachusetts?
It probably doesn’t surprise you to learn that Massachusetts requires its drivers to adhere to core car insurance laws in order to register vehicles and drive legally in the state. Here is a snapshot of the car insurance laws in Massachusetts:
- Drivers must carry minimum coverage insurance: All drivers in Massachusetts must carry a minimum amount of liability and uninsured motorist coverage.
- Drivers must carry no-fault insurance: Massachusetts is a no-fault state, and drivers are required to carry personal injury protection insurance.
- Drivers must have insurance before registering a vehicle: When you register a vehicle with the Registry of Motor Vehicles (RMV), you are required to show proof of insurance.
- Household members must be added to your policy: You are required to add any relatives who live in your home to your car insurance policy, even if they have their own separate insurance coverage.
- You cannot be denied coverage for discriminatory reasons: In Massachusetts, insurance companies are not allowed to consider a driver’s credit score, age, gender, marital status, education or income when calculating their policy premium.
- All drivers have the right to auto insurance: If a driver in Massachusetts is denied coverage from a preferred auto insurance provider, the driver can purchase insurance through the Massachusetts Automobile Insurance Plan (MAIP). Be aware that this is not an insurance company. Instead, it’s a program that helps you find an insurance provider that is willing to work with you.
Liability insurance in Massachusetts
Part of the compulsory insurance requirement is having liability insurance and uninsured motorist coverage. The minimums set by Massachusetts law include:
- $20,000 for bodily injury liability per person
- $40,000 for bodily injury liability per accident
- $5,000 for property damage liability per accident
- $20,000 for uninsured motorist bodily injury per person
- $40,000 for uninsured motorist bodily injury per accident
- $8,000 in personal injury protection (PIP)
Opting for the minimum coverage typically results in lower insurance premiums. However, it’s worth considering that such basic coverage might not fully cover the costs of an accident. For instance, if you’re involved in an incident causing $60,000 in property damage, minimum coverage would only account for $5,000 of that, potentially leaving you to pay the remaining $55,000 out-of-pocket.
It’s also important to note that liability-only insurance doesn’t cover damage to your own vehicle. If your car is damaged, say, by hitting a deer or colliding with a structure, the costs for repairs would generally be out of pocket unless you add comprehensive and collision coverage to your policy — often called full coverage.
Is Massachusetts a no-fault state?
Massachusetts is one of 12 states that follows no-fault car insurance laws. In a no-fault state, a driver’s insurer helps pay for their medical costs and lost wages after an accident, regardless of which driver caused the crash. The other 38 states follow tort insurance systems, where the victim of an accident can file a claim with the at-fault driver’s insurance company to help pay for resulting medical expenses.
Because Massachusetts is a no-fault state, drivers are required to carry PIP insurance to help cover medical bills after an accident. The minimum PIP coverage in Massachusetts is $8,000 per person and $8,000 per accident, but drivers have the option to purchase higher coverage limits.
Penalties for driving without insurance in Massachusetts
The state of Massachusetts takes driving without car insurance in Massachusetts seriously. If you’re caught driving without coverage, you might face these consequences:
- Fines: A fine ranging from $500 to $5,000, with higher fines for multiple offenses.
- Jail time: Up to one year in jail for a conviction, potentially more for subsequent offenses.
- Driving privileges: Suspension of driver’s license and registration for 60 days for the first offense, with longer suspensions for repeat offenses.
- Reinstatement fees: To reinstate your license, be prepared to pay between $100 and $1,200.
- Additional fees: If you choose to appeal an RMV decision, you might have to pay a $50 fee. If you request a court hearing, note that you may have to pay a $25 filing fee (which may be returned to you if you win).
Additional auto insurance coverage options in Massachusetts
Although buying extra insurance coverage will raise your insurance premium, you will get more financial protection, which many insurance experts recommend. Here are some common optional coverage types available in Massachusetts:
- Collision coverage: Collision coverage will help pay for your vehicle’s repairs after a covered accident.
- Comprehensive coverage: Comprehensive coverage will help cover vehicle damage not caused by an accident. In other words, it covers things like theft, vandalism, flooding or falling objects.
- Accident forgiveness: Your car insurance premium will typically increase after an accident. However, adding accident forgiveness can prevent your policy from being surcharged after your first at-fault accident.
- Gap insurance: Gap insurance is handy for drivers who have a leased or financed vehicle. If your new car gets totaled in a covered incident, gap insurance will help pay the difference between the car’s value and your remaining loan balance.
