Saving Money on MA Auto Insurance – Optional Coverage

Coverage Choices – Consumers in MA can lower their auto insurance premiums by deciding on which Optional Coverage is really needed and what level of coverage best fits their situation.

Personal Injury Protection (PIP) Coverage –

You can save on premium if you exclude yourself, or yourself & household members from some or all of this coverage. You should consider this option if you have a medical and disability income plan.

Collision and Comprehensive Coverage –

If  the actual cash value of your vehicle is not very much, it may be a smart decision to not buy Collision or Comprehensive coverage.

Medical Payments –

If you have health insurance, it may not be necessary to purchase medical payments coverage.

Substitute Transportation –

If you can handle not having a vehicle while your car is in the shop for an at-fault or hit & run accident, then you may decide not to purchase Substitute Transportation Coverage.

Towing & Labor –

If you are a member of AAA, or any other motor club, or if you can absorb any sort of tow or auto disablement fee, you probably do not require Towing & Labor Coverage.

MA Auto Insurance Coverage

The Massachusetts Private Passenger Auto insurance policy consists of 12 parts, as follows:

Part 1, Bodily Injury to Others – $20,000 per person/$40,000 per accident (compulsory)

Part 2, Personal Injury Protection – (compulsory, self & household deductible available): $8,000. No-fault coverage.

Part 3, Bodily Injury Caused By An Uninsured Auto – protects driver & occupants against other, uninsured drivers. We recommend you match your Parts 3 & 12 to your Part 5 (Optional Bodily Injury to Others).

Part 4, Damage to Someone Else’s Property – traditional coverage amount is: $100,000. Coverage can be increased (& lowered) to $250,000 with most companies for about $16 per year. Lesser limits are available but the savings isn’t very much.

Part 5, Optional Bodily Injury to Others Coverage – injury to others and lawsuit coverage. This is the coverage the other party will go to if you injure someone in an at-fault auto accident. This is your policy’s “first line of defense” to protect your assets. We recommend limits of, at least, $100,000 per person/$300,000 per accident.

Part 6, Medical Payments – first dollar (no deductible) medical payments coverage which is available to driver & guest occupants. Medical payments coverage can help supplement health insurance coverage.

Part 7, Collision Coverage – coverage protects the value of your vehicle. If at fault in the accident or if a “hit & run,” coverage is subject to policy’s deductible.

Part 8, Limited Collision Coverage – option if you have an older vehicle and you don’t want to carry collision coverage. Coverage allows consumer to collect through own company if not an at-fault accident.

Part 9, Comprehensive Coverage (fire, theft, vandalism)  – coverage is available for damage done to your car by anything other than a collision claim. Coverage is subject to the policy deductible, first dollar (no deductible) coverage for glass claims.

Part 10, Substitute Transportation – available coverage amounts: $15 per day/$450 ($12 per year); $30 per day/$900 ($52 per year). Coverage pays for rental while vehicle is in the shop for accident related vehicle repairs.

Part 11, Towing & Labor – available coverage amounts: $50 per disablement ($8 per year); $100 per disablement ($16 per year).

Part 12, Bodily Injury Caused By An Underinsured Auto– protects driver & guest occupants against other, underinsured drivers. Drivers that carry less Part 5 limits than you. We recommend you match your Parts 3 & 12 to your Part 5 (Optional Bodily Injury to Others).

Why a Massachusetts Auto Insurance Blog?

Why a Blog? Never in my life, did I think of myself as a blogger. Yet here I am … blogging.

My name is Kevin Johnson and I am one of the owners of the independent agency: Johnson & Rohan Insurance in Lynnfield, MA. 

We launched Massautoquote.com in 1999 to provide Massachusetts’ consumers free, MA auto insurance quotes.  

As of April 1, 2008 the MA auto insurance system moved to “managed competition” and lots of things changed. Since then, for the first time since 1977 (think: Mike Dukakis), insurance companies were able to charge whatever they wanted for auto insurance rather than a state-set rate.

As a result of less regulation, insurance companies have come into the state and rates, coverage, and discount programs have been vast and varied.

So, why a MA Auto Insurance Blog?

The Massautoquote.com Blog is our attempt to demystify the MA auto insurance marketplace.

Our job is to help educate Mass. auto insurance consumers and find you the best premiums, with the best companies, with the best discount and insurance programs.

To get a quote, call or click click us today.

Massachusetts Accident Surcharge Appeals

Our MA independent insurance agency gets quite a few questions about at-fault accident surcharges and accident appeals.

Hopefully you will never get in an auto accident.

If you do, the insurance company will determine fault to decide which insurance company has to pay for damages.

The MA Division of Insurance has 19 Standard of Fault for determining fault in an accident:

  Code Standard
  01 Collision with a Lawfully or Unlawfully Parked Vehicle
  03 Rear End Collision
  05 Out of Lane Collision
  07 Failure to Signal
  08 Failure to Proceed with Due Caution from a
Traffic Control Signal or Sign
  09 Collision on Wrong Side of Road
  10 Operating in the Wrong Direction
  11 Collision at an Uncontrolled Intersection
  14 Collision While in the Process of Backing Up
  15 Collision While Making a Left Turn or U-Turn Across the Travel Path of a Vehicle Traveling in the Same or Opposite Direction
  17 Leaving or Exiting from a Parked Position, Parking Lot, Alley or Driveway
  18 Opened or Opening Vehicle Door(s)
  19 Single Vehicle Collision
  20 Failure to Obey the Rules and Regulations for Driving
  21 Unattended Vehicle Collision
  26 Collision While Merging onto a Highway, or into a Rotary
  27 Non-Contact Operator Causing Collision
  29 Failure to Yield the Right of Way to Emergency Vehicles when Required by Law
  31 Collision at a “T” Intersection

Once fault has been determined, Massachusetts then issues an Accident Surcharge Notification.

Unlike the insurance companies, the state will take into consideration contributing factors in the accident. Things such as: road conditions (snow, ice, rain), weather, other driver negligence, vehicle malfunction etc.

In order to Appeal a Surcharge, you are supposed to file the appeal within 30 days of the surcharge notice date. The cost is $50 and appeal instructions are on the surcharge notice.

Massachusetts Appeal Board: 617-521-7478

Massachusetts Merit Rating Board: 617-351-4400

Can I get a hot tub?

Although State Farm does not have agencies in Massachusetts, I smile every time I see their commercials. Besides being humorous, I feel as though they are advertising directly for our local, independent, Massachusetts Insurance Agency. Their commercials stress the person to person relationship that you hope to have with your agent. In each of their commercials, the client is in some sort of trouble and, rather than panicking, they know who to call: their agent.

This person to person relationship and the trust that goes along with years of working together is what our insurance agency, and all Massachusetts independent agencies strive for each and every day.

Japan Tragedy

Recently a Massachusetts home (& auto) insurance client e-mailed our Agency asking about their home insurance coverage.

I e-mailed him back mentioning that his homeowner policy provides “all-risk” coverage with the notable exclusions of:  Flood, Earth Movement & Nuclear Disaster.

He noted the sad plight of the Japanese people and the disasters (uninsured disasters) they have recently suffered.

Furthermore, we recently received correspondence from NADA Used Car Guide which states:

“Due to rapidly evolving events in Japan that have dramatically affected the market for new and used vehicles in the U.S., NADA has issued an update to some passenger car values in the April 2011 edition of the NADA Official Used Car Guide.”

You can visit NADA online at:  http://nada.com/

Massachusetts Driving Records

Our Independent, Massachusetts Insurance Agency gets many questions about driving records and how accidents and moving violations affect insurance rates.

Motor vehicle violations and at-fault accidents are called surchargeable events.

If you have been licensed for, at least, 6 years and have no surchargeable events then you are a state-best:  “99” driver.

When you first get your license you are a neutral “0” point driver. After 5 years clean driving experience you receive a credit and become a “98” driver.

For a minor (less than $2,000 paid out combined damage) at-fault accident, drivers are surcharged 3 points.

For a major (more than $2,000 paid out combined damage) at-fault accident, drivers are surcharged 4 points.

For the first motor vehicle violation (includes inspection sticker violations), the state will not surcharge you — HOWEVER — if you are a “99” or “98” driver, you lose your credits and become a “0” driver. For each additional motor vehicle violations drivers are surcharged 2 points.

Each surcharge point increases your MA auto insurance by, approximately, 5%.

The best way to save money on insurance? Drive Safely & keep your driving record perfect!

Massachusetts Registry of Motor Vehicles

The Massachusetts Registry of Motor Vehicles continues to embrace online technologies and services.

http://www.mass.gov/rmv

Some of the online transactions they offer are:

  • Change Your Address
  • Free FAST LANE sign up
  • License Inquiry
  • Permit Inquiry
  • Mass/Liquor ID Inquiry
  • Order Special Plates
  • Organ and Tissue Donor
  • Pay Citations (Tickets)
  • Registration Inquiry
  • Renew Your Driver’s License
  • Renew Your Mass ID
  • Renew Your Registration
  • Replace Your Driver’s License
  • Replace Your Mass ID
  • Request a Driving Record
  • Request a Duplicate Registration
  • Title/Lien Inquiry
  • Verify Your Driver’s Ed Certificate