It is no secret that having the right automobile accident insurance is important, but many people do not truly understand the type of insurance that they need or even what coverage they currently have. Unfortunately, some drivers do not learn that they have inadequate coverage until they have been involved in a Cape Cod car accident. By then, of course, it is too late to get the appropriate coverage for that particular accident. Knowing what coverage you have, what additional coverage may be advisable, and how different types of coverage work is very important. Below, we discuss several different types of insurance coverage that can protect a family in the event of a crash.
“No-Fault” Does Not Always Mean No Lawsuit
Massachusetts is a “no-fault” state for purposes of automobile accident insurance. Under no-fault laws, drivers are required to purchase personal injury protection (PIP) insurance that will cover a certain dollar amount of medical expenses and a portion of lost wages resulting from an accident, regardless of who caused the collision. However, “no-fault” does not mean that no one can ever be held legally liable for injuries caused by an accident, nor does it mean that all of the insured driver’s expenses are covered under PIP. While each party must rely on his or her own insurance to pay minor expenses associated with a car accident, those who meet a certain threshold established by state statute have the right to file a traditional negligence lawsuit seeking full compensation from the responsible party.
Drivers are also required to purchase liability insurance to cover damages in the event that they are found to be at fault in an accident and the other driver (or a passenger) is able to get past the no-fault threshold and proceed toward traditional tort liability. Currently, the minimum coverage for bodily injury to others is $20,000 per person or $40,000 per accident. There is also a compulsory requirement for property damage (payable when the insured driver causes damages to someone else’s vehicle by causing an accident); the mandatory minimum is $5000 at present.