Part 4 of the Massachusetts Auto Policy is Property Damage Coverage.

The Policy contract reads:

Part 4. Damage to Someone Else’s Property

Under this Part, we (the insurance company) will pay damages to someone else whose auto or other property is damaged in an accident. The damages we will pay are the amounts that person is legally entitled to collect for property damage through a court judgment or settlement. We will pay only if you (named insured) or a household member is legally responsible for the accident. We will also pay if someone else using your auto with your consent is legally responsible for the accident. Damages include any applicable sales tax and the costs resulting from the loss of use of the damage property.

We (the insurance company) will not pay for property damage which occurs:

1. While your auto is being used as a public or livery conveyance. This does not apply to the use of your auto in a share-the-expense car pool arrangement or in an expense reimbursement program wither as a volunteer or at work.

2. While any auto is being used by anyone in the course of his or her employment in the business of selling, servicing, repairing or parking autos. This exclusion does not apply to the ownership, maintenance or use of your auto by you or a household member.

3. While anyone is using a vehicle in the course of any business other than the business of selling, servicing, repairing or perking autos. This exclusion does not apply to private passenger autos or to pic-up trucks, vans or similar vehicles not used for the delivery or transportation of goods or materials unless such use is incidental to your business of installing, maintaining, or repairing furnishings or equipment.

4. While a household member, other than your spouse, is using an auto which you or any household member owns or uses regularly unless a premium for this Part is shown for that auto on the Coverage Selections Page.

5. While you or your spouse, if a household member, is using an auto which you or your spouse, if a household member, owns or uses regularly unless a premium for this Part is shown for that auto on the Coverage Selections Page.

6. To an auto or other property owned by you or the legally responsible person. Similarly, we will not pay for damage to an auto or other property, except for a private residence or garage, which you or the legally responsible person rents or has in his or her care.

7. When the property damage is caused by anyone using an auto without the consent of the owner.

The most we will pay for damage resulting from any one accident is shown on the Coverage Selections Page. This is the most we will pay as the result of a single accident no matter how many autos or premiums are shown on the Coverage Selections Page.

If someone covered under this Part is using an auto he or she does not own at the time of the accident, the owner’s auto insurance must pay its limit before we pay. Then, we will pay for any damages not paid by that insurance, up to the policy limit shown on the Coverage Selections page. However, if the claim is covered by us and another auto policy, we will pay only our proportionate share of those damages not paid by the owner’s auto insurance.

Under this Part, we may have ot pay for property damage even if youor the legally responsible person fails to give us prompt notice of the accident. In that case we may be entitled to reimbursement from that person.

This Part is Compulsory. You must have limits of at least $5,000. However, you may want to buy more protection. Higher limits may be purchased if agreed upon by you and by us. However, $5,000 is the most we will pay for property damage caused by an auto covered under this Part which is being operated in any prearranged or organized racing, speed, stunting or demolition contest or activity or in practice or preparation for any such contest or activity.

Most of our clients at Johnson & Rohan Insurance carry Part 4 limits of $100,000 per accident. More and more are electing to buy, $200,000.

Driving next to a BMW car transport truck on Route 128 the other day, I was reminded that $100,000 may not be adequate coverage.

The annual cost to increase Part 4, Property Damage, coverage from $100,000 to $200,000 is about $7.

Conversely, the annual savings, going from $100,000 down to $50,000 of coverage is only about -$5.

Call your independent MA insurance agent to review your coverage today!

Some people think it doesn’t really matter where they buy their Massachusetts auto insurance. It’s all about price. Price is important, but more important is: what coverage and services are you buying for this price? Buying auto insurance in Massachusetts isn’t like buying bread or milk. Insurance is asset protection and is an important safety net for your family, home, car or business. Don’t treat the purchase lightly!

There is a difference in where you buy your Massachusetts insurance. There are three sources for MA auto insurance:

1. Captive Agents, who can sell you the insurance of only one company.
2. Telephone Representatives, who can offer you the insurance of one company, and only on the telephone or internet.
3. Independent Insurance Agents, who represent an average of eight insurance companies, and research with these firms to find you the best combination of price, coverage, discounts and service.

Your Massachusetts Independent Insurance Agent:

• Is a licensed professional with strong customer and community ties.
• Gives you excellent service and competitive prices because your agent can access the insurance coverage from more than one company.
• Unlike other agents, your Independent Insurance agent is not beholden to any one company; thus, you don’t need to change agencies as your insurance and service needs change.
• Assists you when you have a claim.
• Is your consultant, working with you as you determine your needs.
• Offers you a choice of Massachusetts insurance plans and programs.
• Is a value hunter who looks after your pocketbook in finding the best combination of price, coverage and service.
• Offers one-stop shopping for a full range of products – Massachusetts home insurance, Massachusetts renters insurance, Massachusetts car insurance, business, life and health insurance.
• Can periodically help you review your coverage to keep up with your changing insurance needs.
• Treats you like a person, not just another number.
• Customer satisfaction is the key to a Massachusetts independent agent’s livelihood. So, serving you is a very important concern.

There Is A Difference between Massachusetts Independent Insurance Agents and Captive Agents.

In Massachusetts, unless combined damage is less than $500, drivers that are found “at-fault” are assessed points. If over $2,000 is paid out the accident is considered “major” and 4 points are applied to the driver’s driving record. If less than $2,000 is paid out then the accident is considered “minor” and 3 points are applied. If less than $500, there are no surcharge points.

There are two burdens of proof when it comes to an at-fault accident. The first burden of proof is with the insurance company. Who, in the accident, was more at fault? There are certain “rules of the road” that assist claim handlers when deciding fault. Some examples of “at fault” accidents are: taking a left hand turn, pulling out of a parking space, leaving a stop or yield sign, rear-ending someone,  or being in a single vehicle collision. If you have broken one of these “rules of the road,” then you will, most likely, be found “at-fault” for the auto accident.

Once you have deemed found “at-fault” for an accident by the insurance, you will receive a surcharge notice from The Commonwealth of Massachusetts.

The second burden of proof is with the state. Unlike the insurance companies that deem someone at-fault (unless the accident is considered a 50%-50%) for an accident, the state will consider contributing factors in the accident when it comes to applying the surcharge.

In other words, if you rear end someone in an auto accident, your insurance company will find you “at-fault” for the accident and they will have to pay for damages. You will then receive a surcharge notice from the state. For a fee of $50 you can appeal the surcharge. If the accident was weather related, we always recommend our clients fight the surcharge. If there were other contributing factors, such as, ice, snow, rain, sun in the eyes, or the other vehicle suddenly stopped short because a family of ducks were crossing and you rear-ending the other party was unavoidable, then you stand a real good chance of winning the appeal. 

If you have been surcharged for an accident, and if you believe you were less than 50% at-fault, you may contact the Massachusetts Merit Rating Board to appeal.

Merit Rating Board @ 617-351-4400