The above policy is a Massachusetts Auto Insurance policy written by Duffy Insurance.  I want to use this to illustrate some important factors when determining what you should and should not purchase for insurance coverage.   Typically the above policy is what we recommend purchasing to Duffy Insurance customers. 

Here’s some easy to read info on each policy section.

Part 1- 20,000/40,000 is standard in every Mass. auto policy.  You cannot get any more or any less coverage.  It is required by law.

Part 2- “PIP” for short.   We strongly advise you not to purchase a deductible on this coverage.  Your payments will decrease no more than a few dollars per month if you buy a deductible on your PIP coverage.  The out of pocket expense can be as much as $8,000.  This coverage is required to be purchased on your Mass. car insurance. 

Part 3- Another coverage required by the state of Mass. on auto insurance policies.  We recommend no lower than $100,000/$300,000 for limits.  This means the coverage will pay no more than $100,000/person/accident and no more than $300,000 for one accident.  This covers YOU and YOUR passengers if you are in an accident with a person that does not carry sufficient insurance coverage.  This coverage does not cover you on private roads, in parking lots, or out of the state of Massachusetts.

Part 4- “PD” or Property Damage is pretty self explanatory.  It covers you if you cause damage to someone else’s property (i.e. his or her car).  Since cars are the most common property that is damaged in an accident and cars can cost as much as $100,000 or more, we recommend buying no less than $100,000 PD on your Mass auto insurance policy.   This is required to be purchased by law in Massachusetts with $5,000 as a minimum coverage.  

Part 5- Optional Bodily Injury is an extension of part 1 on your Mass auto insurance.  It covers you out of the state of Massachusetts and in private parking lots and on private roads (part 1 does not) if you cause injury to someone in an car accident.  We recommend no less than $100,000/$300,000 for limits.  This will also pay for your legal fees up to the coverage amount that you purchase.  This coverage is not required by Mass. state law but we always strongly urge Duffy Insurance customer to purchase it.

Part 6- Medical Payments or Med Pay is an extension of PIP.  It works along with your health insurance to pay up to the coverage amount, in the case above $25,000, for expenses such as casts, ambulance fees, etc.  For about $2/month you can get $25,000 worth of coverage.  Pretty good deal.  This coverage is not required to be purchased and depending on your individual circumstances, we may or may not recommend you purchase this coverage.

Part 7- Collision covers your car if you are at fault in an accident in Massachusetts.  Collision coverage always comes with a deductible that can range from $300 to $2,000.  The higher you choose for a deductible the lower your insurance will cost.  Some lien holders will require a deductible not greater than $500.  NEVER purchase collision without a waiver.  Depending on the age and value of your vehicle, we may or may not advise Duffy Insurance customers to buy collision coverage.  Usually the rule of 3 works; you should not pay LESS than 3 times the value of your vehicle for your Mass. car insurance. 

Part 8- Limited Collision- DO not purchase this coverage

Part 9- Comprehensive is available for purchase with a deductible ranging from $300-$2,000.  -  This coverage pays for any loss that you have on your car that is the results of anything other than a collision (i.e. theft or vandalism, windshield replacement, etc).  In Mass. you have the option to purchase a deductible for your windshield specifically.  We never recommend doing this since a windshield typically costs $300.  Beware of companies who try to sell this to you.  This coverage is not required to be purchased and depending on your individual circumstances, we may or may not recommend you purchase this coverage.

Part 10- Substitute transportation covers your rental car expense if you choose to purchase this coverage and you get into an accident that causes your car to be not drivable.  Notice on the policy above the words “up to.”  The company does not necessarily have to pay for your rental car for 30 days in the above policy.  It will pay for your rental car for an agreed period of time not to exceed 30 days.   This coverage is not required to be purchased and depending on your individual circumstances, we may or may not recommend you purchase this coverage.

Part 11- Towing and Labor will pay if your car is towed from the scene of an accident (not because you parked in an illegal spot).  This coverage is not required to be purchased and depending on your individual circumstances, we may or may not recommend you purchase this coverage.

Part 12- Bodily Injury Caused by an Underinsured Auto covers YOU and YOUR passengers if you are involved in an accident with a car whose driver is underinsured.  This coverage is not required to be purchased but we always strongly advise that Duffy Insurance customers purchase this coverage.   Part 12 is an extension of part 3.  The difference is that this coverage does cover you on private roads, in parking lots, or out of the state of Massachusetts.

For personal lines insurance and auto insurance in Massachusetts Duffy Insurance is an industry leader.  We take the time to tailor policies to our client’s individual needs.  For more information feel free to contact us at any time.