INSURANCE COVERAGE
As personal injury attorneys, we get numerous questions from our clients as to what auto insurance coverage is advisable. You need to be aware that on your policy is coverage to protect you from liability if you hit someone or cause property damage but there is also coverage to protect you financially if someone hits you.
Massachusetts is a "no fault" state. Part of your insurance policy coverage is called Personal Injury Protection (PIP). Whenever you are in an auto accident that coverage is immediately available to you no matter who is at fault. PIP reimburses you for 75% of your lost wages as well as your medical expenses and replacement services up to the PIP limit on your policy.
If you have health insurance, after $2,000 of medical bills are paid by auto insurance, then any remaining medical bills must be submitted to your health insurance. If you purchased medical payments coverage, then the bills will be submitted to that rather than your health insurance.
In return for the PIP coverage, your rights to bring a claim against the other party’s insurance for pain and suffering is limited. In order to bring a claim, you must break the "tort threshold." The most common way to break the tort threshold under the law is to have $2,000 worth of medical bills.
Other coverages that protect you financially are Un insured coverage and Under insured coverage. Unfortunately, we see numerous accidents caused by people with little or no insurance coverage and with no personal assets. Massachusetts law requires mandatory Uninsured coverage of $20,000 per person, $40,000 per accident. There is no mandatory coverage for Underinsurance. Underinsurance coverage comes into play where the person who hit you has insufficient insurance to adequately compensate you for your injuries. This is very important in a serious accident or if there are numerous people hurt in the same accident. As this is optional coverage, you must specifically request it. Injuries from auto accidents can severely impact the financial well being of yourself and your family. We recommend that you protect yourself by getting both of these coverages to a minimum of 100/300 and that medical payments coverage be purchased in the amount of not less than $10,000. We recommend that you keep your PIP coverage at the maximum of $8,000, do not elect a deductible.
As for coverages that protect you if you are at fault in an accident, we would strongly recommend to all clients that their property damage coverage be as high as possible, probably a minimum of 50/100. We further recommend that the liability coverage be definitely purchased in a figure of not less than 100/300 especially if you own a house.
You might also want to talk to your insurance agent regarding an umbrella policy which provides you with extra coverage. In addition, we could assist you in filing a homestead for your home.
Please review the coverages for all the insurance policies in your family. You can only collect on the policy for the vehicle you are in. Some of our clients have had an unpleasant surprise where they increased the coverage on one family owned car but overlooked a second family owned car.
Please bring this information to your insurance agent when you are renewing so that you may be properly protected.
I would be pleased to respond to any questions that this may have raised.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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