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. In a no-fault car accident system, after a car accident, your own auto insurance coverage, specifically your “personal injury protection” (PIP) or “medical payments” coverage, pays for medical treatment and other out-of-pocket losses incurred by anyone covered by the policy, up to the limits of your coverage, regardless of who caused the accident. Massachusetts is one of 16 states (at the time of writing this blog post) that follow some type of “no-fault” car insurance system. Read more information on how to find the best car insurance, how to insure a new car, and details on how to get a car insurance quote.
Massachusetts car insurance laws require that all drivers have a minimum level of car insurance coverage when driving or parking on public roads. It includes how to repair your vehicle in a repair shop of your choice, which your insurance company has not chosen; how to contact insurance regulators if your insurance company does not resolve your claim satisfactorily and how to protect your personal information. We work with victims of car accidents in Massachusetts every day and help them understand how the insurance claims process works. Driving without proper auto insurance coverage puts you at risk of financial liability and legal penalties.
The Massachusetts Auto Insurance Plan (MAIP), sometimes called the Assigned Risk Fund, is a way for drivers to get car insurance if they can't find a company in the voluntary market. 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. If you only have a vague idea of what coverage you have or how car insurance works, you're not alone. Each insurance company that is insured and managed is an independent legal entity that is only financially responsible for its own insurance products.
If you cannot find an insurance company that is willing to sign you a policy, an insurance company will be assigned to you through the MAIP.