Auto Insurance Requirements in Massachusetts
In Massachusetts, the law requires valid liability insurance to be in place before registering your car or driving on the road. This law is meant to protect all residents, so drivers are financially responsible for any harm they may cause to others or themselves in an accident.
With an auto insurance policy, you are also protected by the no-fault law, which mandates that auto insurance companies cover your own medical expenses, regardless of fault. You can also use one of the acceptable alternatives to an insurance policy as your proof of financial responsibility.
When you register your car in Massachusetts, the Registry of Motor Vehicles (RMV) will ask you to submit an RMV-1 form. Your insurer will need to sign and stamp the insurance certification section to verify your financial responsibility. However, you should still have your insurance ID card with you whenever you drive, just in case a law enforcement officer asks for it.
Massachusetts required car insurance coverage
Required min. limits | |
|---|---|
| $20,000 per person/$40,000 per accident | |
| $5,000 per accident | |
| $8,000 per accident | |
| $20,000 per person/$40,000 per accident |
Massachusetts car insurance minimum requirements
Your valid Massachusetts auto insurance policy must always include four kinds of coverage: bodily injury, property damage, personal injury protection and uninsured motorist coverage. Here is a list of the protections you can expect under a mandatory insurance policy, plus the minimum amount of coverage for each:
Bodily injury (BI): $20,000/person and $30,000/accident
Requirement
- $20,000 per injured person
- $30,000 per accident for two or more injured people
Covers
- Your personal assets
- Legal fees if the other party sues you, but only up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $5,000/accident
Requirement
- $5,000 per accident
- Higher limits, which vary by insurer, are available
Covers
- The other driver's car
- Other property that is damaged in the accident (buildings, fences, etc.)
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Personal injury P\protection (PIP): $8,000
Covers
- Your own medical expenses, no matter who causes the accident
- 75% of your lost income (up to $8K) if recovering from the accident prevents you from going to work
PIP is usually one of the costliest coverages on your policy, but insurers are required to provide you with two options that can lower your car insurance rates in Massachusetts:
- Choosing a deductible: A PIP deductible means you are choosing to bear a portion of the $8,000 coverage on your own, in incremental amounts ranging from $300 to $8,000. This deductible only applies when the primary driver on the policy is making the claim. In other words, whether or not you have a PIP deductible, each of your family members (if covered) is entitled to the full $8,000 coverage.
- Covered personnel: Usually, PIP covers both you and any family member living with you. If you do not have any family members in the same household, then you may want to consider excluding that part of the coverage in Massachusetts. This option will net you a lower PIP premium.
Uninsured/underinsured motorist bodily injury (UMBI/UIMBI): $20,000/person and $40,000/accident
Covers
- Your medical bills when you are hurt in an accident caused by a driver without sufficient liability insurance
- Note: MA insurance law prevents you from buying higher UMBI/UIMBI limits than the BI limits on the same policy
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Cheapest companies in Massachusetts for minimum liability
Alternative proof of financial responsibility
Although a liability insurance policy is the easiest and most recommended way to fulfill your insurance requirements, there are two alternatives that the Massachusetts RMV will accept as your proof of financial responsibility.
Liability bond: With a surety bond that is payable for $20,000 of medical expenses per person injured (a total of $40,000 for two or more persons) and $5,000 in property damage per accident, your insurance obligation is considered fulfilled. As long as the surety company that issues the bond is licensed in MA, a certificate from them will be valid proof.
Liability deposit: By making a $10,000 deposit with the state treasurer, in either cash or securities (such as a government bond or note), you are good to go. However, whenever this deposit is tapped into to satisfy a judgment against you or a payment you owe to others, the treasurer will require an additional deposit to bring the total amount back to $10,000. The good thing is, the treasurer must put your deposit into either a savings account or some kind of loan account, and you can keep the interest.