The Massachusetts Auto Insurance Policy is comprised of 12 Parts. This week we review Part 4, Damage to Someone Else’s Property.
The first 4 parts of the MA auto policy are compulsory.
Part 4 – Property Damage, pays for damage to another person’s property and costs associated with the loss of use of that property, when you, a household member or another authorized driver cause an accident. A minimum limit of $5,000 is required for Massachusetts Auto Insurance.
With the rising costs of autos and property repair, it makes sense to purchase more than the compulsary $5,000 minimum auto insurance limit. This can be done at minimal cost.
The standard auto insurance limit for our Agency’s clients is $100,000.
Although, perhaps, difficult to exhaust limits of $100,000. The additional annual cost going from $50,000 of coverage to $100,000 is only about + $4.
Some clients may decide to increase coverage from $100,000 to $250,000 of property damage coverage at an additional annual cost of about + $5.
Although limits of $100,000 and $250,000 may be excessive — driving past an automobile transport truck the other day which was carrying 7 new Corvettes — I realized that the additional few dollars a year may be the best investment you can make on your MA auto policy.
Note: only 3% of all drivers purchase the $5,000 minimum for Massachusetts car insurance. In our opinion, these limits are insufficient and the insured will be responsible for damages over $5,000 to someone else’s property.
If you have any questions about your MA auto insurance policy, please stop by, call or click to discuss.
