Massachusetts is a no-fault state for car insurance coverage. If an accident occurs, each party looks to his or her own insurance company to pay for medical expenses and the cost of repairing the vehicle. This system was adopted to make it easier to resolve claims and to reduce the number of legal actions resulting from motor vehicle accidents in the state.
Drivers must have Personal Injury Protection coverage in place to pay for their own medical bills and lost wages. This portion of the MA car insurance policy also pays for funeral expenses.
If an accident is serious enough, an injured person can sue to recover damages. This option is reserved for cases where the amount of medical expenses is quite substantial. Since this option is available in certain cases, Massachusetts car insurance policyholders must also have at least $20,000 in liability coverage for an individual and $40,000 for injuries sustained by all the occupants of the other vehicle in place.
Since the liability coverage is only used for serious accidents, buying the minimum level of coverage required by law may not enough protection to pay the damages sought by those injured in the accident. Once the insurance policy has paid out up to its limit, the policyholder is personally responsible for any additional amounts owing. It may be worthwhile to consider a liability policy with a higher limit.