M216 (09-17) Page 3 of 9
Part I. - Shopping for Insurance
Starting April 1, 2008, Automobile Insurance companies began setting their own rates. This means that if you request
premium quotes for the same coverage from several different companies, you will most likely receive different quotes
from each of them. You will then be able to choose the best rate for the coverage you want. The Commissioner of
Insurance still reviews a company's rates, but the new system allows companies to compete for your business.
Will Competition Lower My Premium?
Competition is designed to encourage insurance companies to offer their lowest possible premium to each driver.
Although the majority of Massachusetts policyholders will probably benefit from reduced rates under the new system, the
amount that you pay will depend on your individual risk factors, such as your driving record, the territory in which you
live, and other rating factors approved by the Division of Insurance.
How Should I Shop For Auto Insurance?
First you should determine what types of coverage you need, and how much of each type you need. Once you have
decided what you need, you should then get premium quotes for that coverage from several companies. You can do this
by working with one or more agents and by contacting different insurance companies directly.
For a current list of all insurance companies offering auto insurance in Massachusetts, please visit the DOI's website at
www.mass.gov/doi.
How Should I Decide Where To Purchase My Policy?
Once you have chosen the types and amounts of coverage that you need, you will need to obtain quotes from different
insurance companies in order to find the best price. Make sure the premium quotes you are getting from each company
are for the same coverage. Once you have determined which companies will provide you with the best price for the
coverage you need, you may wish to speak with family members, friends and neighbors to learn about their claims
experiences. While price is certainly an important factor in deciding which insurance company to choose, it is not the
only factor. Price, discounts, claims handling, location, or the company's financial health are all legitimate factors you
might consider in buying insurance. Ultimately, you must decide which features are most important to you.
Can I Pay My Premium in Installments?
Most companies offer installment plans to allow policyholders to spread out their payments. The company typically adds
a service fee to policies making use of the installment plan option. If you are assigned to an insurer through the MAIP,
you will be offered an installment plan unless you have previously had a policy cancelled for non-payment, or if you have
made a payment with a bounced check. For policies written on the voluntary market, installment plans are optional.
Online Shopping Resources
If you are unsure about how to start shopping, or if you do not know which companies offer automobile insurance in
Massachusetts, you can get information form the Division's Sample Premium website www.mass.gov/autorates. The
premiums you see on this website are NOT premium quotes. They are sample premiums based on sample driver profiles
and intended only to be used as examples. The only place you get an actual premium quote is from a company or an
agent.
The website allows you to review the sample premiums from each company based on a general customer profile. The
website also offers you the ability to link directly to a company, or search for an agent in your area to obtain an actual
quote based on your detailed profile. The website allows you to review the sample premiums from each company based
on a general customer profile.
Part II. - What is in My Insurance Policy?
Compulsory Insurance
There are several types of compulsory insurance that you are required to purchase under Massachusetts law. These
coverages are:
Bodily injury to Others protects you against legal liability for the accident injury or death of others (but not your
passengers) caused by the operation of your car, but only if the accident occurs in Massachusetts. You will be covered
up to a basic limit of $20,000 per person and $40,000 per accident.
Personal Injury Protection (PIP)
pays up to $8,000 for medical expenses, replacement services and up to 75% of any
lost wages. PIP will pay these expenses to you or anyone you let drive your car, anyone living in your household,
passengers and pedestrians, no matter who causes the accident.