Car Insurance Laws and Requirements in Massachusetts

Just like you wouldn’t set out to Boston from Cape Cod without a map, drivers shouldn’t set out to bind an auto insurance policy without understanding the ins and outs of car insurance laws in the Old Bay State. All Massachusetts car insurance policies must meet the state’s minimum coverage requirements, lest they be considered inadequate and the driver uninsured.

Let’s take a closer look at the car insurance laws in the Old Bay State, what drivers should keep in mind when binding their auto insurance policies, and answer some frequently asked questions about the necessary auto insurance coverage in Massachusetts.

Massachusetts car insurance requirements mandate drivers have a minimum limit of several different coverages on their policies. All drivers with vehicles registered in the Old Bay State must have at least $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, $5,000 in property damage liability per accident (20/40/5 liability coverage), $20,000 in uninsured motorist bodily injury coverage per person, $40,000 in uninsured motorist bodily injury coverage per accident (20/40 UMBI coverage), and $8,000 in personal injury protection (PIP) per person and per accident. 

Those who finance or lease their vehicles may be required to have collision and comprehensive coverages on their auto insurance policies as part of their legally binding contracts. Failure to adhere to the car insurance laws in the Old Bay state, whether driving uninsured or without sufficient coverage, is illegal. Driving uninsured may result in fees, fines, license or registration suspension, or even jail time.

All drivers must have auto insurance in Massachusetts that meets the legal minimum requirements. All auto insurance policies in the Old Bay State must have at least 20/40/5 liability coverage, 20/40 UMBI coverage, and $8,000 in PIP per person per accident. Any policy meeting these minimum requirements is considered insufficient, and the driver may face consequences for breaking the law. 

In Massachusetts, driving uninsured can result in fees, fines, license and registration suspension, or even jail time. Those are just the legal consequences, as plenty of other repercussions exist. For example, drivers caught behind the wheel without an active or sufficient policy may be required to have an SR-22 form filed on their behalf. An SR-22 is a form filed by an insurer on behalf of a high-risk driver to certify with the state that the high-risk driver has an active and adequate policy. The existence of such a form on one’s records can nearly double or triple one’s insurance premiums for years to come because it is a manifestation of some pretty serious and risky behavior behind the wheel. 

In Massachusetts, the minimum liability auto insurance all drivers must have is 20/40/5 coverage. All drivers must have at least $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident. Drivers who fail to carry at least this liability coverage limit are considered uninsured and may be punished for breaking the law. 

While maintaining adequate liability coverage and the other minimum limits required by state law will help prevent drivers from breaking the law, a minimum coverage policy may not provide the best coverage. 

Those with a minimum coverage policy risk financial ruin in a catastrophic accident scenario. While Massachusetts mandates several coverages to help protect drivers in various scenarios, there are still plenty of scenarios in which drivers with minimum coverage policies aren’t protected. For example, in an at-fault accident, a driver with a minimum coverage policy would have to pay out of pocket for the victim’s medical expenses if they exceeded $20,000 or vehicle repairs if they exceeded $5,000. 

Massachusetts insurance laws mandate a mix of both no-fault and at-fault coverages. Drivers must carry a minimum limit of 20/40/5 liability coverage and 20/40 UMBI coverage, both of which are at-fault coverages. However, Old Bayers must also have a minimum of $8,000 in PIP on their auto insurance policies, which is no-fault coverage.

Massachusetts is a no-fault state, meaning in the event of an accident, fault doesn’t need to be assigned right away as it does in tort or at-fault states. No-fault states, like the Old Bay State, often mandate drivers to carry a first-party medical benefit like PIP or sometimes medical payments coverage (MedPay). Tort states typically require residents to have a minimum limit of liability coverage.

The primary accident law in Massachusetts is the no-fault law, which causes drivers to default on their PIP should they need financial assistance for any injuries they sustain in the event of an accident, regardless of who was at fault. 

While Massachusetts is a no-fault state, it hasn’t totally gotten rid of tort-state tendencies. While drivers must default to their own insurance coverage when seeking benefits to cover medical expenses, accident victims may also sue at-fault drivers for pain and suffering should they reach their own policy limit. It’s the best of both worlds in the Old Bay State. 

Yes, all drivers in Massachusetts need the legal minimum amount of car insurance coverage, lest they break the law and risk facing the consequences. 

While it’s legally necessary to have car insurance in the Old Bay State, it’s also just generally a good idea. Carrying at least a minimum coverage policy can protect you in a variety of accident scenarios and can help drivers avoid financial ruin. Just one at-fault accident while driving uninsured or without adequate coverage can land Old Bayers in jail for nearly a year. It can take a significant toll on one’s savings between legal defense fees, the victim’s medical expenses, and not to mention your own costs. 

The minimum car insurance in Massachusetts is a policy with 20/40/5 liability coverage, 20/40 uninsured motorist bodily injury coverage, and $8,000 in PIP. Those that maintain the minimum coverage required by law are entirely protected under the eyes of the law but may not be covered in a worst-case accident scenario.

Those who prefer coverage for various accident scenarios may consider increasing their coverage from the minimum legal limit to a full coverage policy. A full coverage policy allows the policyholder to tailor their policy to their unique needs, with optional coverages and coverage limits set to their comfort. Typically, it’s more cost-effective to carry a full coverage policy with a range of coverages so you’re covered in even the most catastrophic accident scenario.

Massachusetts has auto insurance regulations to protect drivers on the road, from each other and from themselves. Mandating insurance for every driver allows the state to ensure most people on the roads are covered if they’re injured in an accident.

States that require auto insurance may also do so to help mitigate the strain on the court systems. Without required coverage minimums, drivers may sue each other far more often to have their expenses covered by the at-fault driver, which would place a heavy burden on the legal processing system. States with no-fault laws, like Massachusetts, take this idea even further, making it more difficult for drivers to sue each other when they must rely on themselves for adequate coverage instead of others on the road. Insurance systems and the claims process intends to shoulder some of the burden that would otherwise fall to the courts. 

Yes, the law mandates that all drivers in Massachusetts have the state minimum auto insurance coverage, lest they face the consequences of driving uninsured. Failure to maintain a policy with sufficient coverage under the eyes of the law is illegal and punishable by fees, fines, license and registration suspension, or even jail time. That’s not to mention the increased insurance premiums and other expenses you may have to pay out of pocket in the event of an accident while driving uninsured.

Maintaining a policy within your budget is crucial, but having enough coverage to protect you outside of what you have in the bank is equally as important. Even with a minimum coverage policy, there’s still a risk of financial downfall if you’re at fault in an accident where the expenses far surpass your policy limit.

If you’re interested in excellent coverage at a lower-than-average rate, you may consider binding a policy with one of the top insurers in the state. The average full coverage policy in the Old Bay State costs about $1,330 annually, but through the state’s top insurers, you may be eligible for competitively low rates and plenty of opportunities to stack discounts onto your premiums to further reduce them.

While most car insurance coverages typically follow the car, not the driver, Massachusetts’s no-fault law throws a wrench into that rule. Out of the three required coverages in the state, liability and UMBI coverages follow the car instead of the driver. That means that even if the policyholder isn’t behind the wheel or even in their car, whoever is inside is covered by their policy, as long as they have the policyholder’s permission to operate the vehicle.

However, PIP typically follows the driver instead of the car. So, if someone has the policyholder’s permission to drive the insured vehicle, the policyholder’s PIP will not extend to that driver, and they’ll need to rely on their own insurance coverage for benefits. However, PIP typically extends to a policyholder’s uninsured passengers if the policyholder is driving.

The best way to find a car insurance policy in the Old Bay State that meets all the minimum coverage requirements and your needs and may help you save a few bucks is to get and compare quotes online. When getting and comparing quotes online, drivers can create policies that meet their unique needs and budget.

Luckily, quotes are kind of our thing here at Clovered. We even have a free quoting tool you can use to access and analyze your unique quotes from several of the state’s top insurers in minutes. If you’d rather speak with a professional about your quote, don’t hesitate to contact one of our licensed agents at 833-255-4117 or [email protected].