Personal Insurance Blog

Why You Should Purchase Auto Insurance Above State Requirements

Compulsory_auto_insurance_info_Andrew_G_Gordon_IncMost states have their own minimum requirements for auto insurance. In Massachusetts, the state says you must carry compulsory insurance.

Compulsory insurance is the first 4 coverages under the auto policy:

Coverage part 1: Bodily Injury to others.

Coverage part 2: Personal Injury Protection.

Coverage part 3: Bodily injury by uninsured Auto

Minimum limit required by the state is $20,000 per person / $40,000 per accident.

Coverage part 4: Property Damage to someone else’s property

Minimum limit required by the state is $5,000.

That is all you need to purchase to insure a vehicle in Massachusetts.

The most important coverage that you should purchase is Optional Bodily Injury, and the state does not require you to purchase it. 

Part 1 Bodily Injury to others will only respond for an accident that occurs in the state of Massachusetts and no where else.

Bodily injury to others pays for damages such as medical expenses, pain and suffering, lost wages, and court costs to anyone injured or killed by your vehicle. The state requires $20,000 per person and $40,000 per accident. 

If you were to cause an accident that goes above and beyond the liability limits on your policy, you can be held personally liable to pay for damages. Many bodily injury claims take years to resolve, and if you are sued and lose a lawsuit, all of your personal assets are at state, as well as future wages. With of cost of current medical expenses and attorney’s fees $20,000 will not go very far.

You cannot increase the limits on part 1 Bodily injury to others, to do so you will need to purchase Optional  Bodily Injury coverage which is part 5 on your policy. By purchasing part 5 Optional Bodily Injury, you also get coverage for accidents that happen out of state. We recommend that you carry a higher limit of $250,000 per person / $500,000 per accident, or at least $100,000 per person / $300,000 per accident.

If you have a youthful operator in your household, it is critical to make sure that you have sufficient bodily injury limits to protect your assets. Newly licensed and inexperienced operators have the highest likelihood of causing an accident.

We have talked about how to protect other, but what if you, a family member, or a designated driver should one of you be hit by a driver with too little or no insurance? If you purchased higher limits for uninsured motorist and under-insured motorist coverage, you can then put in a claim under your policy. You would even be covered should you be hit by a vehicle as a pedestrian.

I feel that if you carry enough coverage to protect others, then you should also protect yourself with the same limits. Parts 3, 5 & 12 should all be the same limit.

Please feel free to call our office (781-659-2262) if you have any questions, or would like a quote for higher limits. Check out our auto insurance page for more resources, and browse our blog for more property damage limit info.

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