Personal Automobile Coverage

For whatever reason, the Massachusetts Personal Automobile Policy, (MAP) always seems to generate so much confusion. We believe this confusion is because we have so many choices within the policy. We have compulsory coverage and optional coverage. We have a wide array of coverage limits and deductibles. We have confusion between what a lender requires as “full coverage” as to what a consumer thinks is full coverage.

Our primary function with this particular product is to take the time to explain automobile insurance in terms that make sense to the consumer. We are driving machines that can fatally injure another human being or cause significant property damage. It is imperative that both proper coverage and adequate limits of liability coverage be offered to hopefully avoid the financial hardship that will certainly follow after any accident.

Compulsory Coverage

Bodily Injury to Others: (Part 1)
This pays for damages such as medical expenses, pain and suffering to anyone injured or killed by your car for an accident that occurs in Massachusetts only. It is limited to $20,000 per person and $40,000 per accident.

You do not have any coverage if you drive outside of Massachusetts or in places where the public has no right of access. Injuries to the driver or passengers are not covered under Part 1.

You certainly could be sued for more than the required minimum limits of $20,000/$40,000 for Bodily Injury to Others. Higher limits are available under the Optional Bodily Injury to Others (Part 5) coverage that may protect you from larger losses. We want our clients to know that higher limits are available and recommended. The limits that you select will depend on your personal financial situation.

Personal Injury Protection (PIP): (Part 2)
This pays up to $8,000 to you or anyone you let drive your car, anyone living in your household, passengers and pedestrians, no matter who causes the accident. Personal Injury Protection pays for medical expenses, replacement services and 75% of any lost wages.

Your PIP coverage pays for medical expenses in excess of $2,000 that are not paid for by your medical insurance only after these expenses have been submitted to the medical insurer to determine what it will and will not pay. Your PIP coverage will not pay for expenses over $2,000 that your medical insurer would have paid if the injured person had sought treatment in accordance with the terms of your health plan.

You can save on your premium by excluding yourself, or yourself and household members from some or all of this coverage if you have a medical and disability income plan. Your health insurance may not cover all of your medical expenses from an auto accident such as cosmetic and dental services, co-payments and deductibles. Also, your disability policy may have long waiting periods. We do not recommend taking any deductibles or excluding anyone due to the relatively small savings achieved.

The driver and passengers, while riding a motorcycle, are not covered by PIP. However, the owner of the motorcycle must purchase this coverage to protect other people who may be injured by the motorcycle.

NOTE: PIP covers owners of cars and motorcycles, and members of their households, if they are injured while occupying or struck by a car that does not have Massachusetts Compulsory Insurance.

Bodily Injury Caused by an Uninsured Auto: (Part 3)
This protects you, authorized drivers, household members & passengers (unless covered by another MAP with similar coverage) against losses caused by an uninsured or unidentified driver. A minimum limit of $20,000 per person and $40,000 per accident is required. Higher limits are available and recommended.

Damage to Someone Else’s Property: (Part 4)
This 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. With the rising costs of automobile and property repairs; higher limits are available and certainly recommended.

Optional Coverage

Optional Bodily Injury to Others: (Part 5)
As far as we are concerned, this is the most important coverage. We recommend that you purchase as much as you can afford and also add the Personal Umbrella Policy.  This coverage extends your liability protection from the basic $20,000/$40,000 limits under Part 1 up to the amount you purchase under Part 5.

It provides coverage for accidents beyond Massachusetts to anywhere in the United States, its territories or possessions, or Canada. This coverage also pays for damages suffered by guests in your auto. Buying higher limits under Part 5 makes good sense if you have assets you wish to protect such as your home & savings.

Medical Payments: (Part 6)
This pays medical expenses for you, your household members and passengers, over and above amounts covered by Personal Injury Protection (PIP) no matter who caused the accident. We always suggest that Part 6 be purchased because it is very inexpensive.

Collision: (Part 7)
This pays for damage to your car, less any applicable deductible, no matter who causes the accident. By adding the "waiver of deductible" endorsement, it means that the collision deductible you choose will not apply when an accident is caused by another identifiable driver; especially when it is an uninsured driver

How much of a deductible is always an issue. If your car is financed, your lender will make that decision. The standard deductible will be $500, but by choosing a larger deductible, you can lower the cost of collision. You need to know how much you can afford to pay out of your own pocket in the event of an accident or loss in which you are at fault. You also need to consider the value of your car and the cost of coverage for a set deductible. You can also elect to forego collision coverage altogether. However, if the accident is your fault or is a hit & run situation you will absorb the cost to repair or replace your car.

This information also applies to Limited Collision coverage (Part 8) and Comprehensive coverage (Part 9).

Limited Collision: (Part 8)
This coverage also pays for collision damage to your car. You must not be more than 50% at fault and the owner of the other vehicle must be identified.

Comprehensive: (Part 9)
This pays for damage to or loss of your car, less any applicable deductible, resulting from perils such as fire, theft, vandalism and striking an animal. Collision is not included! This coverage also allows up to $15 per day (up to $450) for substitute transportation up to when your stolen auto is recovered. Personal property is not covered unless it is permanently installed in your car, such as a stereo. You must report your stolen automobile to the police and your insurance company. You will be reimbursed for transportation costs after the first 48 hours following the report.

You may be denied Comprehensive coverage or required to pay a higher extra-risk rate if you own a high-theft vehicle which does not have a qualifying anti-theft or recovery device. Coverage may be denied or priced higher under certain other conditions. If your car is financed, your lender may require this coverage.

Substitute Transportation: (Part 10)
This coverage reimburses up to $15 a day for car rental or transportation costs including taxi, bus, and train fare (up to $450), while your car is undergoing collision or covered repairs. Coverage of up to $100 a day (up to a limit of $3,000) is available for an additional cost.

If you can afford to take a cab or rent a car for 3 or 4 weeks while your car is in the shop for collision repairs, you may not need Substitute Transportation coverage. If not, then buy adequate coverage! Even if you have this coverage, some car rental agencies may refuse to rent to you if you are under a certain age, a poor credit risk, do not have an acceptable credit card or have an unacceptable driving record.

Towing and Labor: (Part 11)
This pays up to $50 for towing and labor charges each time your car breaks down whether or not there is an accident involved. You are covered only for the on-site labor costs at the breakdown site (not any parts) needed to get your car running again. Coverage up to $100 per disablement is available for additional cost.

Bodily Injury Caused by an Underinsured Auto: (Part 12)
This pays for bodily injury damages to you, household members and passengers, unless they have a policy of their own, or are covered by a Massachusetts auto policy of another household member with similar coverage. The accident must be caused by someone without enough bodily injury coverage. It pays you up to the difference between the total amount collected from the bodily injury liability insurance covering the owner and driver of the other car, and the limits you purchased for this coverage. Since many people buy only the minimum required amounts for Bodily Injury to Others (Part 1), selecting higher limits may protect you from incurring high personal injury expenses.