in ,

Best 10 Massachusetts Automobile Insurance Terms You Must Know

Massachusetts Automobile Insurance Terms
Massachusetts Automobile Insurance Terms

Owning a vehicle in the modern times we live in today is often associated with having a car insurance. Even though it may not be considered mandatory everywhere, it’s always a great idea to have some coverage on your car however minimal it may be. Whether you’re living in Europe, Asia, somewhere else or a state in the United States like New York or Massachusetts automobile insurance is a popular topic when cars are mentioned.

Having in mind that the complex world of automobile insurance is super tough to manage and find your place in, today we decided to take you back to school and cover some of the most important vehicle insurance glossary terms you should know when dealing with this matter.

So, take a closer look at the following paragraphs so that the next time you visit your insurer you are prepared and are aware of what the Massachusetts automobile insurance agent is talking about. Enjoy!

Massachusetts Automobile Insurance 101: Five Elementary Terms

The approach to studying new subjects is to start with the basics. That’s why we’ll do this today, too. Some of the basic glossary terms include premium, primary driver, occasional driver, deductible, the period of the policy, and others. For starters, we’ll try to cover these.

The premium is actually the amount of money you pay to the car insurance company so that you can be covered by their insurance services. Usually, this sum of money can be paid on a monthly basis as well as every quarter or even every six months. You can also ask for a discount in case you want to pay everything in full in the beginning.

The primary driver is sometimes known as named insured, too. He/she is the individual who can drive the vehicle under the insurance policy. What’s more, there can be multiple primary drivers listed in the policy. In most cases, the listed primary drivers are all of the members of a household that are allowed to drive.

On the other hand, you can also find the term ‘occasional driver’ in the car insurance terminology. This individual drives the car occasionally as the name suggests. They, too, are covered under the automobile insurance policy. Just like with the primary driver, there can be multiple occasional drivers.

The deductible is super important when it comes to this type of insurance. And you’ll easily see why. That’s the sum of money you pay for repairing any damages you may suffer before the insurance takes effect. You can choose from a wide variety of deductibles. Note that this affects the premium. How? It’s said that a high deductible equals low premium.

Let’s end the lesson of basic terms with an easy one – the period of the policy. This is the period of time when the car insurance is into effect. Naturally, when it expires, your vehicle will no longer be insured.

Massachusetts Automobile Insurance Declarations Page

Although it sounds like this page may contain your declaration love, it’s far from it. A declarations page in the car insurance terminology refers to a summary of the coverage you have. This is the place where you list the type of coverage, the coverage’s limit, how much it costs, and the details regarding the car among other things.

Massachusetts Automobile Insurance – Personal Injury Protection

The personal injury protection is very often abbreviated to just PIP. It’s an injury coverage that covers the injuries of the driver, the passengers, or pedestrians, and doesn’t cover any damages inflicted on the vehicle. There are numerous limits to the extent of this coverage, so it’s best to check with the specific insurance company you have in mind.

Some of the expenses the personal injury protection coverage can pay for include medical costs, wages that are lost, and even expenses for a funeral.

Massachusetts Automobile Insurance – $25/50/15

These numbers look like some weird date when you look at them for the first time, right? But that’s not what they represent. In fact, they’re associated with the liability coverage. These 3 numbers – $25/50/15 – stand for the liability’s limit (in thousand dollars) for bodily injury per person, a bodily injury for all individuals affected by the accident that occurred, and the damage inflicted on a property.

Moreover, there are states that allow a certain minimum amount. However, you can find options to buy more in most of the car insurance companies out there.

No-Fault Massachusetts Automobile Insurance

The no-fault insurance is a type of car insurance that’s basically designed to keep the blame away from the matter. The purpose of its existence is to reduce the suing of drivers because of slight injuries.

In the case of the no-fault insurance, the injury benefits are paid to the individual who owns the policy regardless of who was at fault. Having said that, if you have injuries made by a careless driver, your Massachusetts automobile insurance takes care of the benefit.

If the driver suffers huge injuries, chances are great that the individual who is at fault would have to take care of the paying. However, you should be careful of the threshold as it varies from state to state.

This kind of insurance doesn’t include coverage against damages made on a property.

Bodily Injury Liability of Massachusetts Automobile Insurance

The bodily injury liability, often called just BI, can be a part of the insurance. It covers for other individuals’ injuries in the case when the driver of the insured car is legally the one to blame for the accident.

This coverage is mandatory in some states, so make sure where your state stands on this before looking for ways to purchase it.

Massachusetts Automobile Insurance Glossary Terms Recap

The thing with the automobile insurance industry is that it’s so vast that you can’t possibly know all the details and intricacies of it. That’s why here we tried to break down some of the most common terms you may find lying in your path to insuring your car. We hope we helped.

Do you know any other glossary terms which others should know about? Feel free to share them with us in the comments!

What do you think?

Leave a Reply

Your email address will not be published.

USAA Car Loans

USAA Car loans: An Easy Alternative to Buying Cars

How Much Is Car Insurance

Details You Should Know About How Much Is Car Insurance