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Smart
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Choices
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Money
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Commonwealth
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Massachusetts
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Executive Office of
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Division of
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Introduction
Many Massachusetts motorists can save money by reevaluating their coverage needs
before renewing their auto insurance policies. This guide is designed to help you
understand how much insurance you need to buy, and how to save money by:
• Choosing coverages wisely,
• Driving safely to earn premium credits, and
• Taking advantage ofavailable discounts.
Please refer to your Massachusetts Automobile Insurance Policy, which contains
the specific terms and conditions ofyour policy.
Contents
You Must Buy
Limited Collision: Pays for damage to your car
Compulsory Coverages 2 only ifyou are not more than 50% at fault.
Bodily Injury to Others (Bl): Pays for damages to Comprehensive: Pays for non-collision damage
anyone injured by your car. to your car resulting from fire, theft, and vandalism.
Personal Injury Protection (PIP): Pays for injuries Substitute Transportation: Pays for car rentals,
and lost wages to you, anyone you let drive your car, taxis and other transportation costs.
your household members, passengers and pedes-
—
trians no matter who is at fault. Towing andLabor: Pays for somebreakdown costs.
Bodily Injury Caused by an UninsuredAuto: Bodily Injury Causedby an UnderinsuredAuto:
Protects you, your household members, and pas- Pays for injuries to you, your household members
sengers when an accident is caused by an unin- and passengers in your car, when an accident is
sured or a "hit and run" driver. caused by someone who does not have enough
insurance.
Damage to Someone Else's Property: Pays for
damage to another person's property ifyou cause
the accident. Choosing Wisely 5
You May Buy Tips for making smart coverage choices
Optional Coverages 3
Savings and Discounts 7
Optional Bodily Injury to Others: Increases the Individual discounts that, combined, can save you
dollar amount of protection under Bodily Injury to over 50% on your total premium
Others coverage.
Medical Payments: Increases the dollar amount Safe Driver Insurance
of medical protection under PIP. Plan (SDIP) 8
Collision: Pays for accident-related damage to Summary and Specifics
your car regardless ofwho is at fault.
More Questions? 12
Waiver ofDeductible: Provides for waivingyour
collision deductible in certain circumstances.
' / I .
You Must Buy
Compulsory Coverages
a r
Bodily Injury to Others (Bl) Bodily Injury Caused By an
Pays for damages (medical expenses, pain Uninsured Auto
and suffering) to anyone injured or killed by
Protects you, household members and pas-
your car in Massachusetts, up to a basic
sengers (unless covered by another Massa-
limit of $15,000 per person and $30,000 per
chusetts policy with similar coverage) against
accident. Injuries to the driver or passengers
losses caused by an uninsured or unidenti-
in your car are not covered.
fied ("hit and run") driver. A minimum limit
of $15,000 per person and $30,000 per acci-
dent is required.
Damage Someone
Personal Injury Protection (PIP) to
Pays up to $8,000 to you or anyone you let Else's Property
drive your car, your household members, Pays for another person's property damage,
passengers and pedestrians, no matter who
and costs associated with the loss of use of
causes the accident. PIP pays for medical that property, when you, a household mem-
expenses, replacement services and 75% of ber or another authorized driver cause an
any lost wages. accident. A minimum limit of $5,000 is
* Check your policy for complete information on the required.
specific terms and conditions ofall coverages.
You May Buy
Optional Coverages
Optional Bodily Injury to Others Collision
—
Increases your liability protection above the Pays for collision damage to your car no
basic $15,000/$30,000 limit under Bodily matter who causes the accident. Ifyour car
Injury to Others. This coverage includes pro- is financed, your lender may require you to
tection for guests in your car and accidents carry this coverage.
that occur anywhere in the U.S. or Canada.
Waiver of Deductible
Allows the collision deductible you choose
to be waived when an accident is caused
by another identifiable driver.
Medical Payments Limited Collision
Covers medical expenses for you, your Also pays for collision damage, but only if
household members and passengers, over you are not more than 50% at fault. One-car
and above amounts covered by PIP. and hit-and-run accidents are not covered.
Optional Coverages
Continued...
Comprehensive Towing and Labor
Pays for losses resulting from perils such as Pays up to $25 for towing and labor charges
fire, theft and vandalism. This coverage in- each time your car breaks down. You ar—e
cludes up to $15 a day for substitute transpor- covered only for the on-site labor costs
—
tation until your stolen auto is recovered (up not any parts needed to get your car run-
to a limit of $450). However, personal belong- ning again at the breakdown site.
ings are covered only if permanently installed
in your car. Ifyour car is financed, your lender
may require you to carry this coverage.
Bodily Injury Caused by an
Underinsured Auto
Pays for bodily injury damages to you, house-
hold members and passengers (unless they
are covered by another Massachusetts auto
Substitute Transportation
policy with similar coverage) when the acci-
Pays up to $15 a day for car rental or other dent is caused by someone without enough
transportation costs (to a limit of $450) while insurance. It pays you up to the difference
your car is undergoing collision repairs. between the total amount collected from the
Some car rental agencies may refuse to rent bodily injury liability insurance covering the
you a car ifyou are under a certain age or a owner and driver of the other car, and the
poor credit risk. limits you purchased for this coverage.
Choosing Wisely D. Can You Afford a Major Lawsuit?
You could be sued for much more than the
required limits for Bodily Injury to Others.
Before renewing your policy, think carefully Buying higher limits under the Optional K
about your insurance needs. Here are some Bodily Injury to Others coverage makes good
tips for making informed choices about sense. Limits of $100,000/$300,000 meet 9R9I
coverages, deductibles and limits: most drivers' needs.
Bodily Injury to Others
= Compulsory Coverage
• Optional Bodily Injury to Others
• = Optional Coverage
= All Coverages E. Do You Drive Out-of-State?
Bodily Injury to Others does not cover acci-
A. Do You Have Too Much or Too dents outside Massachusetts. Think about
Little Insurance? buying Optional Bodily Injury to Others to
Choose an amount of insurance that will protect yourself.
adequately protect you from large losses • Optional Bodily Injury to Others
which could threaten your standard of living,
but do not buy more than you really need. What the Other Driver Doesn't
F. If
All Coverages Have Enough Insurance?
This coverage protects you against underin-
B. Is Your Deductible Right for You? sured drivers. Ifyou choose to buy this cov-
Decide how much you can afford to pay out erage, it makes sense to select limits equal to
ofyour own pocket in the event of an acci- those you purchased under Optional Bodily
dent or loss. You can always save money on Injury to Others.
your premium by choosing a larger • Bodily Injury Caused by an
deductible where one is offered. Underinsured Auto
PIP
• Collision, Limited Collision, Comprehensive G. Can You Afford to Pay the Other
Driver's Repair Bill?
C. Do You Already Have Health and Ifyou cannot afford to pay for repairing
Disability Insurance? ^ aannoottrher driver's car or another person's
property, increasing the required limits
Ifyou do, consider taking a larger deductible, for this coverage to $25,000 is a
or excluding yourself and your household
s- good choice.
members from the PIP coverage. You may not I
Damage
to
need Medical Payments coverage at all.
Someone
PIP Else's Property
• Medical Payments
H. Can You Afford to Repair or Replace K. Can You Afford a New Windshield?
Your Car? Ifyou can afford this kind of out-of-pocket
Find out what your car is worth today. Ifyou expense, consider taking a glass deductible.
can afford to fix it, or if it is not worth much • Comprehensive
more than your deductible, then you may not
need these coverages.
L. Are You Paying for Duplicate
• Collision, Comprehensive Coverage?
Don't pay twice for the same coverage. For
I. Do You Really Need Full Collision example, Comprehensive reimburses you for
Coverage? transportation costs resulting from the loss
Ifyou trust your own driving skills, then of use ofyour car under certain conditions.
Limited Collision is a more economical Therefore, ifyou can afford to take a cab or
choice. rent a car when your car is in the shop for
collision repairs, you may not need Substi-
• Limited Collision
tute Transportation coverage.
A
J. Should You Waive the Collision All Coverages
Deductible?
M. Do You Belong to a Motor Club?
Ifyou decide to take a large Collision
deductible, you may want to reduce the risk Many clubs' services include towing and
of actually having to pay it. For the addition- labor. Ifyou belong to one, you probably do
al cost of this option, you can avoid paying not need this coverage.
the deductible as long as the other driver is • Towing and Labor
identifiable and at fault.
• Collision (Waiver of Deductible)
—
Choosing Wisely Easy Reference Chart
Coverage Tips to Consider
Bodily Injury to Others, Optional Bodily Injury to Others A, D, E, L
Personal Injury Protection A, B, C, L
Damage to Someone Else's Property A, G, L
Bodily Injury Caused by an Uninsured Auto A, L
Medical Payments A, C, L
Collision A, B, H, J, L
Limited Collision A, B, L
I,
Comprehensive A, B, H, K, L
Substitute Transportation A, L
M
Towing and Labor A, L,
Bodily Injury Caused by an Underinsured Auto A, F, L
Savings and Discounts
m
35%
J."> In addition to choosing
wisely, you may be
able to save money by
taking advantage of
savings and discounts
offered on certain
coverages. The follow-
ing chart summarizes
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these money saving
opportunities and the
conditions under which
o
c i they are available.
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10% 10% 10%
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5%
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SAVINGS AND DISCOUNTS
Safe Driver Signal- Senior Passive Anti-Theft Public Driver's Ed Low Multi-
Insurance Activated Citizen Restraints Mechanism Trans- Training Mileage Vehicle
Plan Recovery portation
System
COVERAGES AFFECTED
Bodily Injury, Compre- All PIP, Compre- Damageto Bodily Injury, All coverages Collision,
PIP, Damage hensive Uninsured hensive Someone PIP, Damage EXCEPT: Limited
toSomeone Motorist, Else's to Someone Compre- Collision
Else's Prop- Underinsured Property, Else's Prop- hensive,
erty, Collision Motorist, Collision erty, Optional Sub.Trans-
Medical Bodily Injury, portation,
Payments Collision Towing &
Labor
CONDITIONS
Attainthe Savingsvary Principle Auto Savingsvary Mustshow Inexperi- 10%Discount: Individual
lowestSDIP depending operator mustbe depending evidenceof enced Drive0-5000 ormarried
steptosave ontypeof is65yrs. equipped ontypeof purchaseof drivers milesperyear. couplewho
42%offliability device(s). orolder. withair device. 11 monthsof completing 5%Discount: havemore
coverages; Noinex- bagor commuter approved Drive5001- thanonecar
30%off perienced automatic passesfrom training 7500miles insured with
collision drivers seatbelts. qualified course, peryear. thesame
coverage. on policy. transit save 10% company.
Carsused system, first3years. Experienced
inbusiness $75max. driversonly.
ineligible.
Safe Driver Insurance Plan (SDIP)
PENDING CHANGES
At publication time, changes to
PAY MORE
ease some SDIP surcharges were
Up to 140% more
being reviewed. Check any inserts for certain
premiums
in this booklet or contact your
agent or company for the latest
information.
Summary
PAY LESS
Up to 42% less
for certain
What premiums
is it?
SDIP is a program that encourages
safe driving by rewarding low-risk
drivers and making sure high-risk
drivers pay their fair share of
insurance costs.
How Can Affect Me?
it
Credits and surcharges are based on your
driving history record. You can earn credits
How Know
for safe driving that will save you nearly 50% Will I if I Will Earn a Credit
on certain coverages, or you can accrue or Pay a Surcharge?
surcharges for poor driving that could more Unless all of the drivers on your policy have
than double your premiums for certain had perfect driving history records during
coverages.* your policy's Experience Period (a multiple
year period, determined by the Commis-
What Coverages are Affected sioner of Insurance, which precedes your
by SDIP? policy effective date), your company must
— send you an SDIP Statement.
Bodily Injury to Others (BI) compulsory
— The SDIP Statement shows each listed opera-
Personal Injury Protection (PIP) tor's driving history record and the resulting
compulsory
SDIP Step. Steps higher than 15 result in a
Damag—e to Someone Else's Property surcharge. Steps lower than 15 result in a
(PDL) compulsory credit. Step 15, the SDIP starting step for all
—
• Collision optional drivers, has no effect on your premium.
8
