When you purchase automobile insurance in Massachusetts, the first thing that comes to mind for most people is the thought of bills piling up after an accident. If an automobile accident is your fault, and you injure another person, you might think that your insurance will cover you no matter what. Unfortunately, that might not be the case if you only purchased Compulsory Bodily Injury Insurance. In this post, we will look into the Compulsory Bodily Injury Part of Massachusetts Automobile Insurance, otherwise known as "Part 1" of the Insurance Policy, and see what (and who) is and is not covered.

The first issue has to do with who the driver is, and what car he or she is driving. There are basically three scenarios in which your insurance will cover an accident. First, your insurance will cover you if you are driving your car. Second, your insurance will cover you if someone else is driving your car with your consent.  Finally, your insurance will cover you if you are driving someone else's car.  The caveat to the third scenario is that your insurance will only cover you to the extent that the auto insurer of the owner of that car does not cover the injuries. Then, your insurer will then pay up to its limits.

That brings us to the second issue: what are the "limits?" Should coverage apply, your insurance company will pay up to $20,000 to any one person in any one accident. Subject to that limit, your insurance company will pay up to $40,000 to any two or more people in any one accident. So what does this mean? It means that if you cause injuries to only one person, he or she can recover from your insurance company up to $20,000. If he or she has injuries that are very severe, he or she may then be able to go against you personally. For example, if a jury awards that person $100,000, your insurance company will pay $20,000, and you will be liable for the $80,000 difference. 

If two people are injured, your insurance company will pay up to $20,000 to each of them. The twist comes if there are three or more people injured as a result of an accident. If your insurance company pays $20,000 to two of the three people you injured, the insurance company would have reached its $40,000 limit. Therefore, the third injured person would then be looking at you personally to pay for his or her injuries. Of course, the insurance company could split the $40,000 equally among the three injured parties, but then you would still be liable for any excess. The moral of this story is that the Compulsory Coverage might not be enough to cover a serious injury.

Finally, that brings us to the things that your Part 1 Compulsory Bodily Injury Insurance WON'T pay for. Here is the list:

  • Injuries to guest occupants of your auto. (If you are the cause of an accident, which causes injuries to a passenger of your car, your insurance company will not cover you.)
  • Injuries sustained on account of an accident occurring outside of Massachusetts. (If you are the cause of an accident that happens in another state, your insurance company will not cover you. So, if you are in an accident in New Hampshire, Maine, Connecticut, Canada, or anywhere else, there will be no coverage.)
  • Injuries sustained on account of an accident occurring in Massachusetts, but in a place where the public has no right of access. (If you are the cause of an accident that happens in, for example, a private driveway, there will be no coverage.)
  • Injuries to any employees of the responsible person, if they are entitled to Workers' Compensation benefits. (If you get hurt in a car while on the job, there will be no coverage.)

So, as you see, even the first basic part of automobile insurance can be very complicated. If you get hurt in any automobile accident, you should always consult a lawyer. At the very least, it will save you the headache of having to go through your policy and try to maneuver this system by yourself. That being said, if you have read this piece and are panicking because you think you don't have coverage, take a deep breathe. Part 5 Optional Coverage is meant to fill in the gaps of coverage, so tune back to read about that portion in a future blog post.