Many people think of automobile insurance as something they’re required to purchase for the protection of others, or simply to avoid getting a ticket or facing driver’s license suspension.
With that outlook, far too many simply default to the mandatory minimum coverage when choosing an insurance policy. Once the box is checked and the driver has an insurance card to carry in his glove box or proof of insurance in an app on her phone, automobile insurance typically gets little attention except when premiums are due. But, millions of people across the U.S. are injured or killed in automobile accidents each year. When you’ve been injured in a car accident or have injured or killed another person, the value of the right automobile insurance coverage suddenly becomes clear.
The car insurance you purchase protects you and your family in two ways: by protecting your assets and income in the event of an at-fault accident, and by providing no-fault coverage for some losses suffered by you and your passengers. In this post, I’ll talk about how liability insurance benefits the policyholder and how to determine the right coverage for you. The second post in this series will address coverages designed to benefit you directly, such as personal injury protection, uninsured motorist coverage, medical payments, collision coverage, and smaller items such as towing and rental car coverage.
Mandatory Minimum Automobile Insurance
Massachusetts, like most states, requires that drivers carry certain types of automobile insurance coverage. However, like most states, Massachusetts sets coverage requirements very low:- $20,000 bodily injury liability per person
- $40,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $20,000 uninsured motorist coverage per person
- $40,000 uninsured motorist coverage per accident
- $8,000 personal injury protection
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- $1,000 in medical payments coverage