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• MA Auto Insurance
• Massachusetts Insurance Laws

Mandatory Liability Insurance in Massachusetts

Massachusetts Insurance Law FAQ’s & Requirements

Don’t underestimate the importance of being informed of the minimum requirements in Massachusetts for your auto insurance coverage. You’ll want to know the Massachusetts laws before you sign a contract with any car insurance company. You need to know what the minimum requirements are and you also need to know what insurance coverages are optional in order to decide which ones are the best choice for your particular budget and needs. The following will help you understand more about Massachusetts’s liability insurance laws, helping you choose the best Massachusetts insurance policy for you.

• How long is a Massachusetts insurance company allowed for paying for collision or comprehensive claims?
• I had a car accident and my car was totaled. Does the insurance have to pay the price it costs to replace my car?
• How do I determine what the value of my car was before an accident?
• Do I have to pay my insurance premium if my car was totaled in an accident?
• Will my insurance company pay for original equipment manufacturer parts (OEM)?
• What are the rules governing how an auto insurance company notifies me if they are canceling my policy?
• My car insurance is being canceled. How can I stop this?

How long is a Massachusetts insurance company allowed for paying for collision or comprehensive claims?

There is no definitive time limit. The law states that they must pay the claims in a prompt and reasonable time frame. They must pay a comprehensive or collision claim within seven days after it receives an official claim form stating that the vehicle has been repaired.

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I had a car accident and my car was totaled. Does the insurance have to pay the price it costs to replace my car?

The insurance company needs to pay the value of the car at the time of the accident, not the cost of a replacement vehicle.

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How do I determine what the value of my car was before an accident?

The value is determined by the retail value for a car of like kind and quality, the price you paid for it originally plus the cost of any improvements you made to the car before the accident. Value is subtracted if an appraiser detects prior damage which a claim has paid and it subtracts the actual purchase price of a vehicle of like kind and quality. If you’ve fixed up your car a lot, you should have it insured after having it appraised.

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Do I have to pay my insurance premium if my car was totaled in an accident?

Yes, your insurance stops charging you only when you’ve turned in your license plates to the Registry of Motor Vehicles. If your plates were destroyed in the accident, you need to fill out a “lost or stolen license plate” form and turn the receipt into your insurance company to cancel your policy.

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Will my insurance company pay for original equipment manufacturer parts (OEM)?

Insurance companies in Massachusetts must pay for OEM parts if they affect the operational safety of the vehicle. They must buy OEM parts if the vehicle’s odometer shows that it is still within its first 20,000 miles of use. For non-safety parts on a vehicle that is past 20,000 miles, insurance companies may purchase used, reconditioned, and after-market parts. You may insist that only OEM parts be used, but you’ll have to pay the difference in cost.

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What are the rules governing how an auto insurance company notifies me if they are canceling my policy?

An insurance company in Massachusetts must send the policyholder a notice at least 20 days prior to the effective date of the cancellation. A notice sent by regular mail with a certificate of mailing receipt obtained from the Post Office is considered sufficient. Certified or registered mail with a return receipt is no longer required.

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My car insurance is being canceled. How can I stop this?

If it is being canceled due to lack of payment, you need to pay your outstanding premium charges, otherwise the insurance company is entitled to cancel your account. If you feel that the cancellation of your account is unjust for any reason, you should send a written appeal to the Board of Appeals at One South Station, Boston, MA 02110-2208 prior to the effective date of cancellation.

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