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5 common Massachusetts car insurance myths busted

  • Auto Insurance
  • Renee Martin
  • 3 minutes

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There’s just so much insurance info floating around online and offline that it’s become quite tough to figure out what’s true and what’s false about Massachusetts car insurance. Let’s do some fact-checking to bust the 5 most common Massachusetts car insurance myths.

5 common Massachusetts car insurance myths busted

1.    Massachusetts minimum car insurance coverage is adequate

Well, no, it isn’t, not by any means! Yes, it is true that Massachusetts drivers are only expected to have four kinds of auto insurance coverage, with the following minimums:

  • Bodily injury liability coverage – $20,000 per person / $40,000 per accident
  • Personal injury protection – $8,000 per person, per accident
  • Property damage coverage – $5,000
  • Uninsured motorist bodily injury coverage – $20,000 per person / $40,000 per accident

However, if you cause an accident in which you damage an expensive vehicle/s, the minimum property damage limits will not cover the full cost of the damage. Have you checked what your bodily injury liability cap is? Serious injury, or even death, will result in compensation payments totaling millions of dollars. In this case, you are personally liable for any damages that are not protected by your Massachusetts car insurance policy.

2.    Massachusetts is a no-fault state, so an accident cannot be my fault

5 common Massachusetts car insurance myths busted

Yes, this phrase is quite perplexing, but the fact is no-fault insurance does not guarantee that you will not be held liable for an accident. What it actually allows is the insurance to kick in regardless of who is at fault. This way, you won’t have to wait for a fault judgment before getting coverage. Once fault is identified, the person’s insurer will be held liable for the damages. For instance, if you are involved in an accident, your insurance provider can pay for the repairs to the car if you have crash coverage. You would be liable for the deductible if you are at fault. The remainder will be covered by insurance. You won’t need to pay a deductible if you are not at fault. Your insurance provider will cover the repairs and then seek compensation from the other driver’s insurance company.

3.    Always file a claim for damages regardless of the type of accident

Theoretically, you could go ahead and file a claim, even for a fender bender. But just because you can, should you? Although your car insurance might cover the dent in your bumper, it may not be financially prudent to file a claim. We always recommend discussing it with your agent first and having their opinion on whether going through the claims process makes sense.

4.    If your friend crashes your car, their insurance will cover it

Massachusetts car insurance follows vehicles, not drivers. So, if you lend your car to someone and they have an accident, the lawsuit will be made against your insurance policy, not theirs. If the damage exceeds your insurance limits, your friend’s policy can be used as a secondary. In reality, though, your friend can even sue your insurance provider for personal injury compensation! So be careful when you lend your car to someone.

5.    Costlier cars cost more to insure in Massachusetts

While insurance rates are based on the replacement cost of a car, other factors also influence the costs. A costlier car does not necessarily cost more to insure. Cars with a high theft rate, for example, are more costly to insure because they are more likely to result in a lawsuit. As a result, a car with a high theft rate could cost more to insure than an expensive car with a low theft rate.

To get accurate info on Massachusetts car insurance costs and laws, get in touch with our insurance experts.

5 common Massachusetts car insurance myths busted

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