Massachusetts Optional Auto Insurance Coverages

Beyond compulsory coverage, Massachusetts offers optional coverages to protect your vehicle and provide additional benefits.

Part 6: Medical Payments

Coverage Provided

Medical Payments (MedPay) provides additional medical expense coverage beyond PIP:

Features:

• Covers medical expenses from auto accidents
• No deductible
• Pays after PIP exhausted
• Covers all passengers in your vehicle
• Typical limits: $5,000 to $25,000

When Useful:

• Gap coverage between PIP and health insurance
• Additional protection for passengers
• Covers deductibles and co-pays

Note: Part 6 MedPay is less common in Massachusetts because PIP already provides $8,000 in no-fault medical coverage.

Part 7: Collision Coverage

What Collision Covers

Collision pays for damage to your vehicle from:

• Collision with another vehicle
• Collision with objects (tree, guardrail, building)
• Single-car accidents (rolling over)
• Collision with potholes
• Regardless of fault

Deductible Options

Common collision deductibles:

• $500 - Moderate premium, moderate out-of-pocket
• $1,000 - Lower premium, higher out-of-pocket
• $2,000 - Lowest premium, highest out-of-pocket

How Deductibles Work:

• You pay deductible first
• Insurance pays remaining damage up to vehicle value
• Higher deductible = lower premium

Example:

• Collision damage: $5,000
• Deductible: $1,000
• Insurance pays: $4,000
• You pay: $1,000

Settlement Basis

Collision coverage pays lesser of:

• Actual cash value (ACV) of vehicle
• Cost to repair vehicle
• Minus deductible

Total Loss: If repair cost exceeds vehicle value:

• Insurance pays actual cash value minus deductible
• Insurer takes ownership of damaged vehicle

Exam Tip: Collision coverage is OPTIONAL but required by lenders for financed vehicles. It pays for damage to your vehicle regardless of fault, subject to a deductible.

Part 8: Limited Collision

What Limited Collision Covers

Limited Collision (also called "Collision with Another Object") covers:

Covered:

• Collision with another vehicle
• Collision with animals
• Must involve another object

NOT Covered:

• Single-car accidents (running off road)
• Hitting potholes
• Rolling over
• Collision with stationary objects

Deductible

• Same deductible options as Part 7 Collision
• Typically $500, $1,000, or $2,000

Why Choose Limited Collision?

Advantages:

• Lower premium than full collision
• Covers most common collision scenarios
• Useful for older vehicles

Disadvantages:

• Gaps in coverage for single-car accidents
• No coverage for rolling over or running off road
• Limited protection

Exam Tip: Limited Collision (Part 8) is cheaper than full Collision (Part 7) but excludes single-car accidents. Many Massachusetts drivers choose Part 8 for older vehicles to save on premiums.

Part 9: Comprehensive Coverage

What Comprehensive Covers

Comprehensive (also called "Other Than Collision") covers damage from:

Deductible

Common comprehensive deductibles:

• $0 (for glass only) - Massachusetts requires zero-deductible glass replacement option
• $100-$500 - Most common deductibles
• $1,000+ - Lower premiums for older vehicles

Glass Coverage

Massachusetts law requires insurers to offer:

• Zero-deductible glass replacement for windshields
• Optional coverage for no out-of-pocket cost
• Often included in comprehensive coverage at no extra premium

Exam Tip: Comprehensive covers "everything but collision"—theft, vandalism, weather, animals, etc. Massachusetts requires insurers to offer zero-deductible windshield replacement.

Part 12: Rental Reimbursement

Coverage Provided

Rental Reimbursement pays rental car expenses when your vehicle is:

• Being repaired after covered loss (collision or comprehensive)
• Stolen and not yet recovered

Coverage Limits

When Coverage Applies

Covered:

• Rental needed while your vehicle repaired from covered loss
• Theft (until recovered or total loss paid)

NOT Covered:

• Routine maintenance or repairs
• Mechanical breakdowns
• Pre-scheduled repairs

Typical Premium

• Very affordable: $10-30 per year
• Recommended for drivers who depend on their vehicle
• Alternative: Use savings to self-insure

Towing and Labor Coverage

Coverage Provided

Towing and Labor pays for:

• Towing to repair facility after breakdown
• Roadside assistance (jump start, flat tire, lockout)
• Typically $50-$100 per disablement

When Useful

Consider if:

• You don't have AAA or other roadside assistance
• Your vehicle is older and prone to breakdowns
• You want convenience of one-bill solution

Not Needed if:

• You have AAA membership
• Vehicle includes manufacturer roadside assistance
• You prefer separate service

Exam Tip: Towing coverage is optional and pays for breakdowns and roadside assistance. It's separate from rental reimbursement and often overlaps with AAA services.