Is Massachusetts a No-Fault State for Car Insurance?

All drivers in the Old Bay State must carry no-fault coverage since Massachusetts is a no-fault state. In a no-fault state, drivers must carry a first-party medical benefit (FPMB) like personal injury protection (PIP) on their auto insurance policies. 

No-fault laws can get confusing, and even more confusing is why some states require drivers to carry an FPMB and why some states don’t. Let’s look at how the no-fault law affected Old Bayers, how to add an FPMB on your Massachusetts auto insurance policy, and other information you may need to know about no-fault coverage in the Old Bay State. 

All drivers with car insurance in Massachusetts must have no-fault coverage on their policies since it is a no-fault state. Car insurance laws in the state require drivers to carry at least $8,000 of PIP per person and per accident to fulfill the no-fault coverage requirement. PIP is an FPMB that helps the policyholder cover their medical expenses should they be injured in an accident, regardless of who’s at fault.

States enact no-fault laws to make it more efficient for those injured in car accidents to receive insurance benefits for their medical expenses. States that don’t have no-fault laws are called tort states, and in tort states, at least one driver must be considered at fault. Then, once a driver takes fault for an accident, the accident victim may receive assistance for their medical bills from the at-fault driver’s liability coverage. It can take longer for victims of accidents in tort states to receive insurance benefits because the claim filing systems get backed up when a driver must be found at fault. 

The claim filing systems aren’t the only systems that can get backed up in tort states. When a driver can’t pay the expenses they owe the victim, whether because they lack adequate liability coverage or coverage altogether, the accident victim can sue the at-fault driver. Suing is common in tort states, thus clogging up the legal system and extending the time it takes an accident victim to receive assistance for their bills or debts. 

No-fault laws mitigate the burden placed on the insurance and legal systems by requiring drivers to depend on themselves for sufficient coverage instead of each other. In a no-fault state like Massachusetts, receiving first-party medical benefits is much quicker than receiving liability benefits because drivers file a claim with their insurer rather than the at-fault party’s. Once drivers file a claim with their insurer, they may receive insurance benefits immediately after they pay their deductible. 

In Massachusetts, the no-fault statute exists for a few different reasons. States will often enact no-fault laws due to a high population, densely populated cities, or a high population of uninsured drivers. Massachusetts isn’t a particularly populated state, and it doesn’t have a higher-than-average population of uninsured drivers, but Boston is one of the most densely populated cities in the United States.

When a state has a densely populated city or several densely populated cities, there are more drivers on that city’s roads. With more drivers on the road, there’s an increased risk of accidents. Thus, with an increased risk of accidents, drivers file claims or sue each other for damages, clogging the insurance and legal systems.

Instead of letting these vital systems experience significant overwhelm, states enact no-fault laws. When a state requires drivers to carry no-fault coverage, the legal and insurance systems experience a substantial decrease in demand and can serve citizens efficiently. 

Due to the Massachusetts no-fault law, the Old Bay state is a no-fault state for car accidents. This law requires drivers to carry PIP, an FPMB that covers the policyholder’s medical expenses in the event of an accident, regardless of who’s at fault. 

In a tort state, drivers are typically required to carry liability coverage to extend coverage to the victim of any accident the policyholder may cause. Thus, drivers must rely on each other for coverage on the road. In no-fault states, drivers depend on themselves for coverage, especially regarding medical benefits.

In tort states, those who drive without insurance put other drivers on the road at serious risk of financial ruin. Many tort states require drivers to carry a minimum liability coverage limit, and any additional coverages are optional for policyholders. Thus, a driver could have a perfectly legal minimum coverage policy yet be entirely out of luck in an accident caused by an uninsured driver.

Drivers in the Old Bay State are legally required to have at least $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, $5,000 in property damage liabiility 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), and $8,000 in PIP. Thus, even with a minimum coverage policy, drivers in Massachusetts are covered in a broad range of accident scenarios, whether at fault or the victim. 

While a minimum coverage policy is legal and offers some protection, it may not be the best policy in the state. Full coverage policies allow policyholders to tailor their policy to meet their needs so they’re always comfortable with their protection when getting behind the wheel. The average full coverage policy in Massachusetts costs about $1,330 annually, or about 20% less than the national average. So, boosting your minimum coverage policy to a full coverage policy may not even break the bank. 

In Massachusetts, no-fault insurance covers a range of medical expenses or expenses related to an injury the policyholder sustained in an accident. The law requires every driver in the Old Bay State to carry at least $8,000 in PIP, the no-fault coverage available in the state. However, residents cannot carry more than $8,000 in PIP as insurers don’t offer a higher limit. 

Failure to follow the no-fault law would constitute driving uninsured, which is illegal in Massachusetts. Drivers who fail to maintain adequate coverage may be subject to fees, fines, license and registration suspension, or even jail time. Drivers who fail to maintain sufficient coverage may also require an SR-22 form to be filed on their behalf, thus raising their insurance premiums for years to come. 

While there’s a limit on how much PIP a policyholder can add to their policy, there’s another FPMB drivers can add to their policies to provide more coverage for medical expenses. Medical payments coverage (MedPay) acts similarly to PIP in that it covers the policyholder’s medical expenses incurred in an accident, regardless of who was at fault.

FPMBs like PIP or MedPay may cover a range of medical expenses or expenses related to an injury from an accident, like:

PIP typically offers a more expansive range of coverage that may cover services outside of immediate medical care. PIP may cover loss of wages, in-home care, childcare, or housekeeping if you’re incapacitated due to injuries from an accident, whereas MedPay likely won’t cover such expenses. 

It’s important to remember that an FPMB like PIP or MedPay may cover expenses for the policyholder and their passengers. Typically PIP will cover a policyholder’s passengers if they don’t have their own auto insurance policy. 

No, in Massachusetts, car insurance is no-fault, not at-fault. This means that drivers carry an FPMB on their auto insurance policy that covers themselves directly instead of relying on other drivers to carry coverage to protect them. In a no-fault state, policyholders typically must carry PIP or another FPMB to cover the medical expenses they incur in an accident, regardless of who’s at fault.

In a tort or at-fault state, drivers are typically required to carry liability coverage to cover any medical expenses a victim may incur in an accident with the at-fault policyholder. 

All drivers in the Old Bay State must have an active and adequate car insurance policy that contains, among other coverages, $8,000 in PIP. If you’re interested in adding additional coverage to help you stay protected behind the wheel but are still interested in finding the cheapest policy in the state, the best way to see all options is to get and compare quotes online. By getting and comparing quotes from several insurers, you can window shop to your heart’s desire until you find a deal you simply can’t beat.

Lucky for you, quotes are our bread and butter. Here at Clovered, we have a free quoting tool you can use to get quotes from the state’s top insurers in minutes. If you prefer to speak with a professional, you can contact one of our licensed agents at 833-255-4117 or [email protected].