Consumer guide to 2009 Massachusetts Auto Insurance

Things you should know

Not all vehicles may be insured on a Massachusetts Personal Automobile Policy. In order to meet eligibility requirements, a vehicle must be:

A private passenger vehicle. This includes sedans, coupes, station wagons, vans, pickups with gross vehicle weight under 10,000 lbs, motorcycles and motor-homes. (Commercial vehicles, large trucks, taxis, buses or other non-private passenger vehicles must be insured on a Commercial Policy).

1. Owned by one or more persons or leased by one or more persons for at lease one year. (A vehicle owned in the name of a business must be insured on a Commercial Policy).

YES	NO

When you are involved in a car accident, you rely on your auto insurer to handle your claim properly, quickly and with as little inconvenience to you as possible. To protect yourself from a claim denial it is important that all the information provided to your insurance company is complete and accurate (named insured, address, garaging, all drivers and household members, etc).

NOTE (A): “Policyholder” or “Named Insured” is a person named in the policy. This person owns the policy and is covered by it. (Owner or Lessee).

NOTE (B): You must list all principal and occasional operators, as well as all licensed household members! (If any of your children who are household members obtain a driver’s license you must notify your company as soon as possible).

Providing false, deceptive, misleading or incomplete information to your insurance company may result with a claim denial!

WHAT IS A “DEC PAGE”?  

The Declarations Page (also referred as a “Dec Page”), provides the following information:

“WHO”: the Insurance Company, the Agent or Broker, the Named Insured, the Lienholder/Leasing Company, the Listed Drivers.
“WHAT”: Each vehicle covered by the policy (listed with year, make, model and vehicle identification number –VIN); the coverage that applies to each vehicle; any credits that apply to that policy.
“WHEN”: Effective day (always at 12:01 AM) and Expiration day.
“WHERE”: Mailing address and the town where the vehicle is garaged.

 NOTE (C ): Mailing Address and Garaging are not always the same. (The garaging is important to rate the policy properly).

“HOW MUCH”: Coverage Limits, Premiums, Deductibles and Total Premium. (Any changes made to the policy after the effective date may result in changes of premium).

Your policy premium also depends on other applicable surcharges and discounts. For example: Safe Driver Insurance Plan (SDIP Steps), Out-of-State records, Driver’s Education, Age 65 or Older, Annual Mileage, Anti-Theft Device, etc.

POLICY SET-UP

The Massachusetts Automobile Policy consists of 12 parts. The first four parts are compulsory. They must be included in any Massachusetts Auto Policy:

COMPULSORY INSURANCE – COVERAGES YOU MUST BUY

1. Bodily Injury to Others – pays for damages (medical expanses, pain and suffering, etc) to anyone injured or killed by your car only in accident that occurs in Massachusetts, up to basic limit of $20,000 per person and $40,000 per accident. Injuries to the driver or passengers in your car are not covered under this Part (see Part 2).

Note: You will need Optional Bodily Injury to Others if you drive outside of Massachusetts or/and in non-public places (like private driveways). Also, it is recommended to buy higher than minimum required limits that may protect you from large losses.

1. Personal Injury Protection (PIP) – pays up to $8,000 to you or anyone you let drive your car, anyone living in your household, passengers and pedestrians, no matter who causes the accident. PIP pays for replacement services, 75% of any lost wages and medical expanses in excess of $2,000 that are not paid for by your medical insurance. Please note, that your Health Insurance may not cover all of your medical expenses from an auto accident.

Note: The driver and passenger, while driving a motorcycle, are not covered by PIP – it covers others that may be injured by the motorcycle. This Part also covers owners of cars and motorcycles (and members of their household) if they are injured while occupying or struck by a car that does not have Massachusetts Compulsory Policy.

1. Bodily Injury Caused By An Uninsured Auto – protects you, anyone you let drive your car, household members and passengers against losses caused by an uninsured or unidentified driver. (Basic required limits: $20,000 per person and $40,000 per accident).

1. Damage to Someone Else’s Property – pays for damage to another person’s property and costs associated with the loss of use of that property, when you, a household member or another authorized driver cause an accident. (Minimum $5,000 limit is required, however much higher limits are recommended).

OPTIONAL INSURANCE – COVERAGES YOU MAY BUY

1. Optional Body Injury to Others – extends your liability protection to the amount of increased limits purchased under this Part. Also this option provides coverage for accidents beyond Massachusetts to anywhere in United States and Canada. This coverage also pays for damages suffered by guests in your auto.

1. Medical Payments – covers medical expenses for you, your household members and passengers, over and above amounts covered by Personal Injury Protection no matter who caused the accident.

1. Collision - pays for collision damage to your car, less any applicable deductible, no matter who causes the accident. If your car is financed, your lender may require this coverage.

It is recommended to buy this collision coverage with a “waiver of deductible”.

NOTE: Please remember about Pre-Insurance Inspection (if applicable).

1. Limited Collision - you must not be more than 50% at fault and the owner of the other vehicle must be identified.

1. Comprehensive – pays for damage to or loss of your car, less any applicable deductible, resulting from fire, theft, vandalism, etc (other than collision). This Part also pays for substitute transportation (rental, taxi, bus fares, etc) up to $15 a day until your stolen auto is recovered (to a limit of $450).

NOTE: Please remember about Pre-Insurance Inspection (if applicable).

1. Substitute Transportation – reimburses up to $100 a day for car rental or transportation costs while your car is undergoing collision or covered repairs (up to $450).

1. Towing and Labor – pays up to $50 for towing and labor charges whether or not there is an accident involved.

1. Bodily Injury Caused By An Underinsured Auto – pays for body injury damages to you, household members and passengers, unless they have a policy of their own, or are covered by a Massachusetts auto policy of another household member with similar coverage. Someone without inadequate “Bodily Injury Coverage” must cause the accident. This Part pays up to the difference between the total amount collected from the bodily injury liability insurance covering the owner and driver of the car, and the limits purchased for this coverage. Higher limits recommended.

REMEMBER:

 It is your responsibility to pay insurance premium to effective dates.

 Make sure your registration, plates, safety inspection sticker are valid and/or renewed on time to avoid additional premiums and/or cancellation of your insurance policy.

 If you returned your license plates to the Registry of Motor Vehicles and you wish to cancel your insurance policy you must forward the Plate Return Receipt to the Insurance Company or your Insurance Agent.

 IMPORTANT:

 If you or someone on your behalf provides an insurance company false, deceptive, misleading or incomplete information concerning the description and place of garaging of the vehicles to be insured, the names of operators required to be listed and answers given for all listed operators, the insurance company may refuse to pay your claims under any and all of the optional insurance parts of your policy.

 The above “Consumer Guide” is provided on this site only for educational and information purposes. For more information regarding Massachusetts Insurance Laws go to WWW.STATE.MA.US/DOI.