By law, you must purchase four coverages called mandatory (or mandatory) coverages in at least the minimum amounts required by law and in higher amounts if you so choose. Driving without proper auto insurance coverage puts you at risk of financial liability and legal penalties. Massachusetts car insurance laws require that all drivers have a minimum level of car insurance coverage when driving or parking on public roads. The terms “auto insurance limits” and “coverage limits” refer to the maximum amount an insurer will pay in the event of a loss that is covered by its policy.
Each type of insurance coverage has a limit, which means that the insurance company will not pay more than this amount for a claim.