Do I Need Auto Insurance?

April 21st, 2013 by

Accident ReportIn short, yes. In the state of Massachusetts, it is required by law that you have a stated minimum of liability insurance. We’ll get to that in a second, but first explain exactly why it’s a good idea to have anyway.

Accidents can happen to anyone at anytime. Even the most careful of drivers get into automobile accidents, and can still be found responsible. If you’re found liable for an accident, you will be responsible for paying a large part of those damages. Having liability insurance, at the minimum, is the key to protecting yourself financially in these types of situations.

Minimum Requirements for Auto Insurance

Here are the requirements as listed by the Attorney General’s office of Massachusetts:

  • Bodily injury to others: $20,000 per person; $40,000 per accident
  • Personal injury protection : $8000 per person; per accident
  • Damage to someone else’s property: $5000 per accident
  • Bodily injury caused by an uninsured auto: $20,000 per person; $40,000 per accident

What Determines Your Insurance Premium?

There are a large number of factors that determine your monthly insurance premium. While some of these are out of your control, there are a few that you can work to regulate:

  • Obey the rules of the road: moving violations make you a bigger threat on the road. Thus, your premiums go up. Working to improve you driving record by obeying the speed limit and other road signs will over time lower your premium.
  • Getting a new car? Check the insurance rates: different vehicles cost different amounts to insure. For example, it’s typically more expensive to insure a flashy sports car than it is to insure a four-door commuter. While that’s a scenario that most people won’t find themselves in, here’s a different one to consider. Driving an old beater may in fact cost more to insure than a newer vehicle. Again, do some research about the rates before coming to Silko Honda to look at new Honda vehicles if you’re especially worried about insurance costs.

Where you live: living in a safer neighborhood means your vehicle is less likely to be broken into and/or stolen than if you live in a rougher area. Obviously, you’re going to need to pay more if you live in a high crime area. Moving isn’t really an option for many people in these cases, so telling your insurance company that you’re parking off-street in a garage may help to lower your rates.