Understanding Auto Insurance in Massachusetts
Massachusetts Auto Insurance Coverage
Years ago, Massachusetts was what was referred to as a fixed and established state. Put simply, this meant that auto insurance rates were set by the state government. Each person was assessed based on how they fit into various categories (such as age, gender and driving record) and was charged a specific rate, set by the state government, based on those criteria. The upside to this arrangement was that shopping for auto insurance was easy – no matter who your provider was, your rate would remain the same. On the other hand, it also meant that drivers were forced to accept whatever rate was given to them, without the ability to shop around for a lower rate.
The Changes In Car Insurance in Massachusetts
These days, auto insurance rates are no longer set by the state government. The various insurance providers in the state are able to lower their rates in order to compete with other providers. This means that you have a lot more control over how much you’re paying than you did in the past, but it also means that you have to do your homework before choosing a provider.
Some Things Have Remained the Same
While the state doesn’t set the rates for insurers any longer, they do still require certain minimum coverage in order for you to driver legally. When a vehicle is registered in the state, the auto insurance company must first provide a stamp for your registration application. If you don’t have the stamp, you won’t be able to register. After you’re registered, you still have to maintain this minimum level of insurance. If you don’t, you’ll potentially have to deal with large fines and the possibility of license suspension as punishment for not having your insurance.
Minimum Requirements for Insurance in Massachusetts
The minimum requirements for Massachusetts Auto Insurance have not changed in recent years. In order to drive legally, you must have what’s known as a 20/40/5 policy. This means you must have $20,000 of bodily injury coverage per person and $40,000 for all persons injured as well as $5,000 for property damage coverage. In addition to your 20/40/5 policy, you’ll also need $8,000 in person injury protection. Typically, extending this coverage into more comprehensive coverage is not very expensive and can be well worth your while, when you consider the expenses that can occur as a result of being under insured.
