If you drive a vehicle in MA, you are aware that certain minimum coverage is required by law in order to get your car registered in the state. But what exactly are these minimum MA auto insurance requirements and what are the dangers of low coverage limits?
Types of Coverage
In Massachusetts, you are required to have 4 types of coverage and the required minimums are as follows:
- Bodily Injury to Others – $20,000 per person; $40,000 per accident
- Personal Injury Protection (PIP) – $8,000 per person, per accident;
- Bodily Injury Caused by an Uninsured Auto- $20,000 per person; $40,000 per accident
- Damage to Someone Else’s Property – $5,000 per accident
Basically these are the amounts the insurance company will pay for a claim. Your insurance company will not pay more than this amount. By law, you are required to carry these minimums. The problem being – more often than not, these minimum limits will not be sufficient if you are involved in a major accident and can leave you in a precarious position.
Should You Buy Additional Coverage?
Advisably, yes. Let’s explore that aforementioned precarious position. If you are in a major accident and damages or personal injury exceed those limits, you could be held liable for the difference. These high out-of-pocket expenses can put a huge strain on you financially. This is why it is so important to buy coverage limits beyond the minimum requirements. While you may think that you are initially saving money by opting for the lowest possible coverage, in the long run it could cost you much more than you can afford! And since the cost for additional coverage is relatively negligible, it always best to err on the side of caution and increase your coverage whenever possible.
Why are there Minimum MA Auto Insurance Requirements?
In essence, it is safeguard measure to help protect the public.
Now that you have a better understanding of why minimum MA auto insurance requirements are important, you can make more informed decisions about your coverage. Remember – the slight difference in annual cost could be what saves you from severe financial hardship.
If you would like to learn more about coverage limits, increasing your coverage, or purchasing an additional policy – please contact us for details.
