Every state has its own car insurance requirements. Massachusetts law sets the following requirements for all vehicles registered in the state:
- Personal Injury Protection (PIP) coverage of at least $8,000. PIP pays for your medical expenses and 75% of your lost wages or replacement services (such as childcare), up to the policy limit. Your PIP insurance covers you, members of your household, anyone you let drive or ride in your car, and pedestrians hit by your car.
- Bodily Injury (BI) coverage, which protects other people injured or killed in an accident you cause. The minimum bodily injury insurance in Massachusetts is $20,000 per person and $40,000 total per accident, with the option to purchase more.
- Uninsured Motorist (UM) insurance, which “stands in” for the other driver’s insurance if you are hit by a vehicle that does not have liability insurance. UM also pays for injuries caused by an unidentified driver (that is, a hit and run or “phantom vehicle” that is never found). Like PIP, UM covers you, your household members, and anyone you let drive or ride in your car.
- Property Damage coverage, which pays for damage to another person’s vehicle or other personal property in an accident you cause. The minimum property damage liability insurance is $5,000 per accident.