Massachusetts car insurance: For those who intend to buy a car in the United States, it is important to know that no vehicle can run without mandatory insurance or basic coverage. In the United States, most laws are State rather than Federal. As such, laws vary from state to state. In this text, we will cover all the information about car insurance in Massachusetts.
Basic Massachusetts car insurance
In Massachusetts, car insurance is mandatory, however, only that which covers the basics. The other types of insurance will depend on your choice. The basics are divided into two categories: Personal Injury Protection (PIP) and Property Damage (PD). They only cover damages caused to the other person, not yours.
- Personal Injury Protection (PIP): covers damages caused to the owner of the car you crashed and the people who were next to him. Such as medical, hospital, and funeral expenses.
- Property Damage (PD): covers damage caused to the vehicle. From the repair to the replacement of the car if it is a total loss.
These insurances only cover damage caused to the person who suffered the accident, not the person who caused it. If the person who caused the accident is also harmed, it is he who should bear the expenses, not the insurance. But if you want the damage done to him and the car to be covered as well, you should get another type of insurance.
Other types of insurance
- Comprehensive and Collision: Covers your car in the event of a crash or rollover. You can also include other types of situations in it, such as natural damage: theft, fire, flood, etc.
- Full Cover Insurance: it is the complete insurance. It encompasses both PIP and PD, that is, it covers both your damages and the other person’s, and you can ask to include Comprehensive and Collision in it.
You can customize insurance according to your needs. But remember: the more complete it is, the more expensive it will be.
The amount of insurance will depend on several factors:
- Whether it is a luxury car or not;
- Place where you live;
- Your wallet time;
- Your age;
- Your history (whether it has already caused an accident or not);
- Choice of the insurer;
- Type of service chosen.
What weighs the most when calculating the value of insurance is where you live. Where is your garage? This is in addition to your US wallet time. Even having 10 years of a portfolio in Brazil, arriving in the USA, your score will be zero since the portfolio will be new. They take into account that, with a new license, you have no experience, so the chances of an accident increase.
If you live in a place with a higher crime rate, your insurance may increase as well. As well as busier areas. Where you live matters a lot! The same insurance may have a different value in each city.
If you live further away from the city center then it will be cheaper. But, you should never put an address that is not yours to reduce costs. If the insurance company needs to investigate what happened, they will find that you lied about the address and the insurance will be forfeited. In case of natural disasters for example. If they find out you lied, they may refuse to pay the expenses. They might even ask the neighbors, so be on the lookout! Be honest. The famous “Way” does not work in the US.
Many people when they arrive in the US open a company/company to be able to insure their car in the name of the company. This reduces the cost, however, if you open this company and don’t work for it, you don’t make it work paying taxes, so the company goes down and automatically your insurance ends too. So, if you intend to do this, remember that there needs to be moved, and the company needs to be active for the insurance to remain active.
Tip to reduce cost:
If you have many years of practice in Brazil, you can present your portfolio nto the insurance company. This is granted by the DETRAN. It comes with your wallet and shows how much driving time you have. This will significantly reduce the cost. As long as you show your history, that you’ve driven in the past plus your US license. Your Brazil wallet is valid for 1 year in the US (from the date you enter the country). So, in the first year, it is possible to insure the car with her. To learn more about this click here.
It is very important not to delay your insurance payment. In the United States, the police have a license plate reading system. If your payment is delayed for a few days, your insurance may be canceled/blocked, and you will not be able to drive your vehicle like this. When passing by a police car you will be stopped and the car will be towed, in addition to possible complications. So keep your payments up to date.
When it comes to a rental car, the insurance value is already included in the rental. It is not possible to rent a car without it. But, not all car rental companies are trustworthy. Pay close attention to the type of insurance included in the rental, ask beforehand so that you are not the most affected in the event of an accident.
In the United States, you can be detained if you are unable to pay/compensate the injured party. Lack of resources does not justify non-payment. So it doesn’t matter if the car is yours or rented, take precautions first.
The laws in the United States are extremely strict. But, on the other hand, the benefits are enormous. Get your insurance and drive carefully!