All 50 U.S. states require drivers to carry auto insurance, but the amount of required coverage varies from state to state. Massachusetts drivers are required to show proof of required insurance coverage in order to register or renew registration on a vehicle. Massachusetts drivers caught driving without insurance are subject to hefty fines of up to $5,000 and up to 1 year in prison.

Minimum Required Insurance Coverage in Massachusetts

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $20,000 for one person
• Minimum of $40,000 total for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and other public or private property surrounding the accident scene

• Minimum of $5,000 for all damages

PIP (Personal Injury Protection): Covers injuries to yourself and your passengers if you cause an accident

• Minimum of $8,000 per person

UMC (Uninsured/Underinsured Motorist Coverage): Covers injuries to yourself and your passengers if you are involved in an accident caused by an uninsured or inadequately insured driver

• Minimum of $20,000 per person
• Minimum of $40,000 per accident

The Massachusetts Auto Insurance Plan (MAIP)

The Massachusetts Auto Insurance Plan (MAIP) is a state-run insurance service for Massachusetts drivers who cannot find their own coverage through a private company. The MAIP is not an insurance company, but a service that will assign you to a private insurance company.

No-Fault Insurance System

Massachusetts uses the no-fault system of auto insurance. This means that regardless of who is at fault for an accident, a driver’s own insurance will pay for his/her injuries, and injuries to his/her passengers. Whoever is at fault for an accident is financially responsible for all vehicles and property (even surrounding public property) damaged in the accident.

Competitive Insurance Market System, Merit Rating

As of April, 2008, Massachusetts changed its auto insurance system from fixed to competitive, which means insurance companies can adjust their rates to be more competitive based on a driver’s history. Through this system, safe drivers can receive discounted rates, and surcharges may be added for drivers with violations and at-fault accidents on their records. As part of this system, Massachusetts drivers are required to notify the state Merit Rating Board of at-fault accidents and out-of-state traffic violations. These factors will increase your insurance premiums, but at the same time, safe drivers with clean records will have the benefit of lower premiums.
Insurance companies in Massachusetts can choose to formulate their own merit rating plan to adjust insurance rates based on driving history, or they can choose to adopt the state’s standard merit rating plan.

See the Massachusetts Executive Office of Public Safety and Security for more information about what constitutes an at-fault accident.

About Liability Insurance

Liability insurance covers damages to the other driver’s vehicle or property resulting from an accident that you cause. It does not cover damages to your vehicle or property. If you want to be covered for your own vehicle’s damages in the event that you cause an accident, you must purchase collision coverage.

Please note that if you have a loan, lease, or lien on your vehicle, you may be required to carry more comprehensive insurance than what is required by the state.

About Personal Injury Protection

Personal injury protection (PIP) is designed to cover injuries to yourself and your passengers if you cause an accident. Massachusetts requires all drivers to carry at least $8,000 in PIP coverage, but in the event of serious injuries, this amount will likely be inadequate. While many health insurance plans will also cover this type of injury, they will not cover injuries to your passengers unless they are your dependents or are otherwise included in your health insurance plan.

About Uninsured/Underinsured Motorist Coverage

Although all Massachusetts drivers are required to carry liability insurance, the state still requires all drivers to carry Uninsured/Underinsured Motorist Coverage (UMC) of at least $20,000 per person and $40,000 per accident. If you are involved in an accident caused by an uninsured or underinsured driver, this coverage will pay for your (and your passengers’) injuries, lost time, or funeral expenses.

Proof of Insurance/Penalties for Uninsured Drivers

All Massachusetts drivers are required to carry proof of insurance in their vehicles at all times. If you are involved in an accident or a traffic stop, you will be asked to provide proof of insurance. Uninsured drivers in Massachusetts will be subject to fines of $500-5000 and up to 1 year in prison. Your driver’s license and vehicle registration will also be subject to suspension. To restore your driving privileges, you will be required to pay a fine of $500 or 1 year’s auto insurance premiums at the highest state rate, whichever is greater.