Massachusetts insurance Laws

Massachusetts insurance Laws

No-fault state: Massachusetts may be a no-fault state, therefore in spite of WHO causes Associate in Nursing accident, you switch initial to your own personal injury protection (PIP) coverage. Minimum limits ar $8,000 and canopy things like medical expenses, replacement services and seventy fifth of lost wages.

Unique terminology: Massachusetts insurers generally talk over with bodily injury liability coverage as "bodily injury to others" and uninsurable automobilist as "bodily injury caused by uninsurable car."

Credit not a rating factor: Credit information is prohibited from being used for underwriting or rating purposes by Massachusetts car insurance companies. Most other states allow the practice.

Safe Driver Insurance Plan (SDIP): The SDIP establishes classifications of risks and thus outlines what insurers should surcharge drivers for. Read up on it, and how to appeal a surcharge, on the RMV website.

Proof of insurance: Massachusetts requires insurance to register a car, so an up-to-date sticker on your license plate or copy of your registration form may be adequate proof of coverage when stopped by a Massachusetts law enforcement officer. Make sure you request a hard copy of your insurance card, though, in case you travel.


Lemon and Lemon Aid laws: Massachusetts, like many states, has a Lemon Law regarding defects that consumers may find with their new or leased vehicles; however, it also has a unique Lemon Aid law.

The Lemon Aid law allows you to cancel or void a car sale or contract if your vehicle fails to pass inspection within seven days from the date of sale and the estimated costs of repairs of emissions or safety related defects exceed 10 percent of the purchase price. This applies to dealer and private party sales of cars and motorcycles acquired for personal use.

No points system: There is no driver's license points system in Massachusetts, but insurance companies still base their rates off a points system, usually determined to the SDIP system of surcharges.

Violations in other states: If you are cited for traffic violations in a state other than Massachusetts, it will still show up on your Massachusetts record and can affect your insurance rate.

Uninsured motorist penalties for Massachusetts: You may be fined $500, be sentenced to one year in jail and have your license suspended.