In Massachusetts, there are four required (compulsory) auto insurance coverages. These compulsory coverages protect you if you are responsible for injuring someone or damaging another person’s property, as well as if you are physically injured in an accident.
What some do not realize, however, is that the compulsory coverages do not cover damage to your own vehicle.
To help protect your car, you may purchase optional coverages, which all insurance companies are required to offer. The most common optional coverages are Collision and Comprehensive insurance.
- Collision Coverage pays for damage to your vehicle caused by a collision with another vehicle or object, such as a guardrail. This coverage applies regardless of who is at fault. Collision coverage may also help pay for certain towing and temporary storage charges related to a covered accident, subject to policy limits and restrictions. A limited collision option may cover these damages in certain situations only.
- Comprehensive Coverage pays for damage to your vehicle caused by events other than a collision. This includes theft, vandalism, fire, falling objects, and contact with animals. It also covers glass damage not related to a collision.
Both collision and comprehensive coverage typically include a deductible (often $500), which is the amount you pay out of pocket before insurance applies.
If you are looking to lower your premium, you or your agent may consider dropping these optional coverages. However, this may not be the best choice unless your vehicle has a low market value and would be inexpensive to replace.
To save money on auto insurance, the best thing to do is shop around and compare rates from different companies. It is also imperative that you maintain a safe driving record; your premium is influenced by factors such as your driving history, the type of vehicle you drive, and the experience of other drivers on your policy.
Understanding your coverage options can help you make informed decisions about protecting both your finances and your vehicle. Additional information can be found on the Division of Insurance’s website or by calling our consumer hotline at 617-521-7794 (option 2).