Massachusetts is a “no-fault” auto insurance state, which basically means that your policy pays for your injuries and expenses and the other driver’s policy pays for your injuries and expenses, regardless of who was at fault in the accident. In Massachusetts, auto insurance is required by state law and four mandatory parts are required with minimum liability limits required for each part.

Part 1, bodily injury to others, protects you against legal liability in an accident for injuries suffered by passengers in the other vehicle. It does NOT protect the passengers of your car or an accident outside of Massachusetts. The legal limit is $20,000 per person and $40,000 per accident.

Part 2, Personal Injury Protection, pays up to $8,000 for medical expenses, replacement services, and 75% of lost wages. And this includes anyone you let drive your car, regardless of who caused the accident.

part 3, Bodily injury caused by an uninsured car, protects you (and anyone you let drive your car) against losses caused by an uninsured driver. This part also requires $20,000/$40,000 liability limits although more coverage can be purchased.

part 4, Damage to property, pays for damage to someone else’s property when you are involved in an accident. The minimum required limit is $5,000, but most people have significantly more coverage on their policy.

Those four parts represent the mandatory coverage required by Massachusetts state law, but most people would want to purchase additional sections of the policy to better protect themselves in the event of an accident.

part 5, Optional bodily harm to others, is one of those coverages that must be added for most drivers. This part protects you just like Part 1 did, but it can give you additional protection in the form of higher limits, protection for passengers in your car, and protection outside of Massachusetts. You should consult an agent to help you determine transportation limits and what best suits your needs.

part 6, Medical Payments, will pay for reasonable medical and funeral services when you are involved in an accident. This part of the coverage may not be required if you have adequate health insurance coverage, but you may be able to afford additional coverage that your health policy does not cover, such as an uninsured passenger.

part 7, Collisionpays for damage to your car regardless of fault.

part 8, limited collision, pays for damage to your car if you are less than 50% at fault and have the name of the other driver. If you have a lien on the car, the lien holder will require collision coverage.

part 9, Comprehensive, pays for damage to your car from things like fire, theft, and vandalism. Again, if there is a lien on the car, the lien holder will require you to purchase this coverage. Even if your car is of little value, this section could pay for a broken windshield that could cost you several hundred dollars. Therefore, it is worth considering buying for the relatively small premium for this part.

part 10, substitute transportation, it will pay you up to a limit you choose and, in certain circumstances, for the rental of a replacement vehicle while your car is being repaired after an accident. If you would be renting a car in the event of a theft or accident, you should consider purchasing this part of the coverage.

part 11, Trailer and labor, would pay you up to your limit ($50.00 or $100.00) for the cost of towing and labor each time your car is disabled. If you belong to a Motor Club or have Roadside Assistance from your vehicle manufacturer, you may not need this coverage.

part 12, Bodily injury caused by an underinsured car, would pay you for bodily injuries (under certain circumstances) in an accident where the other driver did not have enough insurance to pay for your injuries. Again, you should consult with an insurance professional to determine your individual needs.

Now that you have an idea of ​​what the policy will cover and how much insurance you should buy, what about the price? On April 1, 2008, managed competition came to Massachusetts and with it came competitive grading. Many factors affect your rate, such as where you live, the car you drive, and your driving record. It is always good to shop around for the best price and all the discounts available. Discounts can range from “low mileage” to “multiple car” and even “good student” discounts. Always check with your agent to see what you may be eligible for. In most cases, it’s best to “bundle” your home and auto policies with the same provider, since they will offer discounts on both policies if they issue them.

Finally, be sure to see that each trader is qualified with the same information and set of circumstances. Many times that information is not the same and that could significantly affect the rate. Choose an agent who can give you several different quotes with financially sound carriers and the agent has a good reputation for customer service.