Auto Insurance 101
Auto insurance protects you, your spouse, relatives who live in your home, and other licensed drivers who have permission to drive your insured vehicle. An auto insurance policy is made up of 12 parts that break out into the categories of Compulsory Insurance and Optional Insurance.
The first four Compulsory coverages are required by Massachusetts law. The other eight Optional coverages provide additional insurance protection. While it may be cheaper in the short-run to have only the minimum coverages, you and those you care about would not be very well protected in the event of a significant accident.
When you are shopping for automobile insurance on Cape Cod, the South Shore or Southeastern Massachusetts; remember that it is not just the price of the policy but the amount of protection that you are purchasing that should drive your decision. In today’s litigious society purchasing only basic coverage could leave you extremely vulnerable when you consider the costs of medical expenses and property damage.The following is a brief explanation of each coverage part:
Compulsory (Required) Insurance:
Bodily Injury to Others
This coverage pays damages for if you are legally responsible for an accident in Massachusetts injuring someone else other than guests in your auto. It also provide for legal defense and court costs.
Personal Injury Protection
This is commonly known as "No-Fault" and provides benefits including medical expenses, lost wages, and replacement cost services.
Bodily Injury Caused by an Uninsured Auto
Pays damages for bodily injury resulting from certain accidents caused by uninsured autos or in a hit-and-run situation.
Damage to Someone Else's Property
This coverage pays for damages to someone else whose auto or other property is damaged in an accident if you, a household member or someone using your auto with your consent is legally responsible.
Optional Insurance:
Optional Bodily Injury to Others
Pays for damages to people injured or killed in accident if you, a household member or someone else using your auto with your consent is legally responsible for the accident. Unlike the Compulsory part, this coverage does provide coverage for injuries to guest occupants and for accidents occurring outside of Massachusetts.
Medical Payments
This coverage pays for reasonable expenses for necessary medical and funeral services to yourself and your passengers incurred as the result of an auto accident. It also covers expenses if you or a household member is struck by a vehicle or a passenger in another vehicle at the time of an accident.
Collision
This coverage pays for any direct and accidental damage to your auto caused by a collision regardless of fault. It also covers damage to other private passenger autos being used by you or a household member with the permission of the owner.
Limited Collision
This coverage will pay in some situations for direct and accidental damage to your auto caused by a collision. Coverage is only provided for multiple car accidents in which the driver of the auto we are covering was no more than 50% at fault.
Comprehensive
This is not a substitute for Collision or Limited Collision. This will pay for direct and accidental damage to or loss of your auto in non-collision situations including vandalism, theft, fire, wind, hail, flood, hitting an animal and others.
Substitute Transportation
This coverage reimburses you, up to the limits shown on the Coverages Selections Page, in certain situations if your auto was in a collision and is being repaired or replaced. Transportation is provided if your car is stolen under Comprehensive, but can be combined with this coverage to extend coverage for theft. Limits apply.
Towing and Labor
This coverage pays for auto towed and labor due to a breakdown even if there isn€™t an accident. Coverage is up to limit shown on the declaration page,
Bodily Injury Caused by an Underinsured Auto
This coverage pays for damages for bodily injury or death as the result of certain accidents caused by someone who does not have enough insurance.