Handyman Consumer Info About Massachusetts Car Insurance
Massachusetts’ law requires that every vehicle operating on the roadways must be insured and currently the state follows the No-Fault system. This means that a policyholder will have compensation in place for injuries suffered as a result of a traffic accident regardless of which party is found to have caused the incident; compensation will be given up to the amount of coverage purchased and stated under the Personal Injury Protection (PIP) portion of the car insurance policy.
The state requires that motorists who choose to purchase policies must do so with several different types of coverage to satisfy the state’s requirements. According to Massachusetts auto insurance laws, policies must consist of liability limits in the amount of $20,000 for bodily injury to one person, $40,000 for bodily injuries to two or more people, and $5,000 for property damage. A policy must also include Personal Injury Protection (PIP) in the amount of $8,000 and Uninsured Motorist Coverage for bodily injury with limits of $20,000 per person and $40,000 per accident or equal to the liability limits. Higher levels of protection may be purchased and coverage for damage to the insured’s vehicle would have to be added on to a policy for an additional premium.
Additional Info About MA auto insurance
Residents of the Bay State should be aware that the Office of Consumer Affairs and Business Regulation (OCABR) goes through great lengths to protect citizens in the market for car insurance. As of April, 2008, insurers have been able to determine rates under managed competition; prior to that, the Commissioner of Insurance would set premiums under the “fix and established system.” Although companies can now set rates based on risk, there are many regulation that must be followed to help protect the rights of consumers to ensure that a motorist has the best chance of finding the most affordable policy possible.
According to the Massachusetts Consumer Bill of Rights for Automobile Insurance it states that all residents have the right to purchase auto coverage and shop around until the best products and price are found. In addition, the state also mandates that individuals cannot be denied a policy because of credit history or any unfair discriminatory reason which includes, race, gender, creed, national origin, marital status, religion, age, income, education, garaging address, occupation or homeownership. If a consumer is denied coverage, the insurer must given reasons why such action was taken. Individuals are heavily protected by the state and if a motorist cannot find a policy on the open market they should contact the local government for assistance.