Massachusetts is a no-fault state for car insurance. When a car accident occurs, the at-fault driver (and his or her insurance company) are not held responsible for paying for personal injuries and damage caused to the other driver’s vehicle. Instead, each person submits a claim to his or her own insurance company for payment. The idea behind a no-fault insurance system is to resolve accident claims relatively quickly.
In that state, drivers are required to buy Personal Injury Protection (PIP) coverage. This insurance pays for their medical bills incurred following the accident. It also provides compensation for lost wages. If the accident resulted in a fatality, the PIP policy pays for funeral expenses. Some residents of Massachusetts who have a health insurance plan that provides a good level of benefits may opt to buy only the minimum level of PIP required under state law.
No-fault insurance doesn’t necessarily mean that people injured in motor vehicle accidents have entirely given up the right to sue. When the accident results in serious injuries, the victim may look to the at-fault driver for compensation for his or her injuries, as well as the cost of repairs to the vehicle. For this reason, all drivers on MA are required to carry liability insurance coverage as well.