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The Basics of Auto Insurance
If you're a driver in Boston, Massachusetts you must abide by the auto insurance laws of the state. Massachusetts has a four part compulsory insurance plan, which means that you're required to carry insurance in order to register your car.
Massachusetts is unique when it comes to auto insurance. Unlike other states, Massachusetts sets auto insurance rates rather than allowing the companies to set rates in the state. Massachusetts is also the only state that has required insurance surcharges. This means that if you're caught speeding, you're insurance premiums will automatically increase.
With all these different auto insurance laws throughout the country, it's important that you have basic understanding of auto insurance before you go shopping. Auto insurance provides insured individuals with property coverage on the vehicle, liability coverage and medical coverage. Most states require drivers to have liability insurance at the very least before they can legally be behind the wheel of a car. Liability insurance will pay for the other driver's medical bills, car repair and other costs that may be the result of the policy holder's fault in an auto accident. All states have laws that set the minimum amounts of insurance or other financial security for drivers that have to pay for the harm caused by their negligence in an accident.
Bodily injury liability covers the injuries of the person who is injured in the accident that is caused by the policy holder. These individuals are also covered should someone be borrowing the policy holder's car with their permission. Drivers do have the option to purchase more than the state's minimum requirements for this aspect of auto insurance, as it is common for driver's to be sued after accidents.
Medical payments or Personal Injury Protection coverage pays for the medical bills for the driver and passengers of the policy holder's vehicle. Personal injury protection is able to pay for your lost wages, medical payments and the cost of replacing services that would have been performed by the injured individual. In the event of a death, this coverage may also cover the funeral costs of the deceased.
Property damage liability pays for damage that may be caused by the policy holder's car including items such as mailboxes, lamp posts, fences, buildings and other structures or property that may be hit by the car in an accident.
There are several other insurance options that you can elect to add to your policy in addition the minimums required by the state you live in. In a large city, such as Boston, you may choose to carry these "extras" for additional coverage.
