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' M/nr. cAit\.£- SV<^oVl_l UMASS/AMHERST llllIN! II III II II illl 312066 0374 5469 1 Smart 2 Choices 81 Money Saving On Your Qui 41991 E99M nuKisadWK »«s.< Commonwealth c Massachusetts Sis* Executive Office of Consumer Affairs and Business Regulation Division of Insurance - h t, Introduction Many Massachusetts motorists can save money by reevaluating their coverage needs before renewing their auto insurance policies. This guide is designed to help you understand how much insurance you need to buy, and how to save money by: • Choosing coverages wisely, • Driving safely to earn premium credits, and • Taking advantage ofavailable discounts. Please refer to your Massachusetts Automobile Insurance Policy, which contains the specific terms and conditions ofyour policy. Contents You Must Buy Limited Collision: Pays for damage to your car Compulsory Coverages 2 only ifyou are not more than 50% at fault. Bodily Injury to Others (Bl): Pays for damages to Comprehensive: Pays for non-collision damage anyone injured by your car. to your car resulting from fire, theft, and vandalism. Personal Injury Protection (PIP): Pays for injuries Substitute Transportation: Pays for car rentals, and lost wages to you, anyone you let drive your car, taxis and other transportation costs. your household members, passengers and pedes- — trians no matter who is at fault. Towing andLabor: Pays for somebreakdown costs. Bodily Injury Caused by an UninsuredAuto: Bodily Injury Causedby an UnderinsuredAuto: Protects you, your household members, and pas- Pays for injuries to you, your household members sengers when an accident is caused by an unin- and passengers in your car, when an accident is sured or a "hit and run" driver. caused by someone who does not have enough insurance. Damage to Someone Else's Property: Pays for damage to another person's property ifyou cause the accident. Choosing Wisely 5 You May Buy Tips for making smart coverage choices Optional Coverages 3 Savings and Discounts 7 Optional Bodily Injury to Others: Increases the Individual discounts that, combined, can save you dollar amount of protection under Bodily Injury to over 50% on your total premium Others coverage. Medical Payments: Increases the dollar amount Safe Driver Insurance of medical protection under PIP. Plan (SDIP) 8 Collision: Pays for accident-related damage to Summary and Specifics your car regardless ofwho is at fault. More Questions? 12 Waiver ofDeductible: Provides for waivingyour collision deductible in certain circumstances. ' / I . You Must Buy Compulsory Coverages a r Bodily Injury to Others (Bl) Bodily Injury Caused By an Pays for damages (medical expenses, pain Uninsured Auto and suffering) to anyone injured or killed by Protects you, household members and pas- your car in Massachusetts, up to a basic sengers (unless covered by another Massa- limit of $15,000 per person and $30,000 per chusetts policy with similar coverage) against accident. Injuries to the driver or passengers losses caused by an uninsured or unidenti- in your car are not covered. fied ("hit and run") driver. A minimum limit of $15,000 per person and $30,000 per accident is required. Damage Someone Personal Injury Protection (PIP) to Pays up to $8,000 to you or anyone you let Else's Property drive your car, your household members, Pays for another person's property damage, passengers and pedestrians, no matter who and costs associated with the loss of use of causes the accident. PIP pays for medical that property, when you, a household mem- expenses, replacement services and 75% of ber or another authorized driver cause an any lost wages. accident. A minimum limit of $5,000 is * Check your policy for complete information on the required. specific terms and conditions ofall coverages. You May Buy Optional Coverages Optional Bodily Injury to Others Collision — Increases your liability protection above the Pays for collision damage to your car no basic $15,000/$30,000 limit under Bodily matter who causes the accident. Ifyour car Injury to Others. This coverage includes pro- is financed, your lender may require you to tection for guests in your car and accidents carry this coverage. that occur anywhere in the U.S. or Canada. Waiver of Deductible Allows the collision deductible you choose to be waived when an accident is caused by another identifiable driver. Medical Payments Limited Collision Covers medical expenses for you, your Also pays for collision damage, but only if household members and passengers, over you are not more than 50% at fault. One-car and above amounts covered by PIP. and hit-and-run accidents are not covered. Optional Coverages Continued... Comprehensive Towing and Labor Pays for losses resulting from perils such as Pays up to $25 for towing and labor charges fire, theft and vandalism. This coverage in- each time your car breaks down. You ar—e cludes up to $15 a day for substitute transpor- covered only for the on-site labor costs — tation until your stolen auto is recovered (up not any parts needed to get your car run- to a limit of $450). However, personal belong- ning again at the breakdown site. ings are covered only if permanently installed in your car. Ifyour car is financed, your lender may require you to carry this coverage. Bodily Injury Caused by an Underinsured Auto Pays for bodily injury damages to you, household members and passengers (unless they are covered by another Massachusetts auto Substitute Transportation policy with similar coverage) when the acci- Pays up to $15 a day for car rental or other dent is caused by someone without enough transportation costs (to a limit of $450) while insurance. It pays you up to the difference your car is undergoing collision repairs. between the total amount collected from the Some car rental agencies may refuse to rent bodily injury liability insurance covering the you a car ifyou are under a certain age or a owner and driver of the other car, and the poor credit risk. limits you purchased for this coverage. Choosing Wisely D. Can You Afford a Major Lawsuit? You could be sued for much more than the required limits for Bodily Injury to Others. Before renewing your policy, think carefully Buying higher limits under the Optional K about your insurance needs. Here are some Bodily Injury to Others coverage makes good tips for making informed choices about sense. Limits of $100,000/$300,000 meet 9R9I coverages, deductibles and limits: most drivers' needs. Bodily Injury to Others = Compulsory Coverage • Optional Bodily Injury to Others • = Optional Coverage = All Coverages E. Do You Drive Out-of-State? Bodily Injury to Others does not cover acci- A. Do You Have Too Much or Too dents outside Massachusetts. Think about Little Insurance? buying Optional Bodily Injury to Others to Choose an amount of insurance that will protect yourself. adequately protect you from large losses • Optional Bodily Injury to Others which could threaten your standard of living, but do not buy more than you really need. What the Other Driver Doesn't F. If All Coverages Have Enough Insurance? This coverage protects you against underin- B. Is Your Deductible Right for You? sured drivers. Ifyou choose to buy this cov- Decide how much you can afford to pay out erage, it makes sense to select limits equal to ofyour own pocket in the event of an acci- those you purchased under Optional Bodily dent or loss. You can always save money on Injury to Others. your premium by choosing a larger • Bodily Injury Caused by an deductible where one is offered. Underinsured Auto PIP • Collision, Limited Collision, Comprehensive G. Can You Afford to Pay the Other Driver's Repair Bill? C. Do You Already Have Health and Ifyou cannot afford to pay for repairing Disability Insurance? ^ aannoottrher driver's car or another person's property, increasing the required limits Ifyou do, consider taking a larger deductible, for this coverage to $25,000 is a or excluding yourself and your household s- good choice. members from the PIP coverage. You may not I Damage to need Medical Payments coverage at all. Someone PIP Else's Property • Medical Payments H. Can You Afford to Repair or Replace K. Can You Afford a New Windshield? Your Car? Ifyou can afford this kind of out-of-pocket Find out what your car is worth today. Ifyou expense, consider taking a glass deductible. can afford to fix it, or if it is not worth much • Comprehensive more than your deductible, then you may not need these coverages. L. Are You Paying for Duplicate • Collision, Comprehensive Coverage? Don't pay twice for the same coverage. For I. Do You Really Need Full Collision example, Comprehensive reimburses you for Coverage? transportation costs resulting from the loss Ifyou trust your own driving skills, then of use ofyour car under certain conditions. Limited Collision is a more economical Therefore, ifyou can afford to take a cab or choice. rent a car when your car is in the shop for collision repairs, you may not need Substi- • Limited Collision tute Transportation coverage. A J. Should You Waive the Collision All Coverages Deductible? M. Do You Belong to a Motor Club? Ifyou decide to take a large Collision deductible, you may want to reduce the risk Many clubs' services include towing and of actually having to pay it. For the addition- labor. Ifyou belong to one, you probably do al cost of this option, you can avoid paying not need this coverage. the deductible as long as the other driver is • Towing and Labor identifiable and at fault. • Collision (Waiver of Deductible) — Choosing Wisely Easy Reference Chart Coverage Tips to Consider Bodily Injury to Others, Optional Bodily Injury to Others A, D, E, L Personal Injury Protection A, B, C, L Damage to Someone Else's Property A, G, L Bodily Injury Caused by an Uninsured Auto A, L Medical Payments A, C, L Collision A, B, H, J, L Limited Collision A, B, L I, Comprehensive A, B, H, K, L Substitute Transportation A, L M Towing and Labor A, L, Bodily Injury Caused by an Underinsured Auto A, F, L Savings and Discounts m 35% J."> In addition to choosing wisely, you may be able to save money by taking advantage of savings and discounts offered on certain coverages. The follow- ing chart summarizes :!5( < these money saving opportunities and the conditions under which o c i they are available. &:XM fmmM ..........;..:•:;;::• 10% 10% 10% on 5% 5°/c i°/< D SAVINGS AND DISCOUNTS Safe Driver Signal- Senior Passive Anti-Theft Public Driver's Ed Low Multi- Insurance Activated Citizen Restraints Mechanism Trans- Training Mileage Vehicle Plan Recovery portation System COVERAGES AFFECTED Bodily Injury, Compre- All PIP, Compre- Damageto Bodily Injury, All coverages Collision, PIP, Damage hensive Uninsured hensive Someone PIP, Damage EXCEPT: Limited toSomeone Motorist, Else's to Someone Compre- Collision Else's Prop- Underinsured Property, Else's Prop- hensive, erty, Collision Motorist, Collision erty, Optional Sub.Trans- Medical Bodily Injury, portation, Payments Collision Towing & Labor CONDITIONS Attainthe Savingsvary Principle Auto Savingsvary Mustshow Inexperi- 10%Discount: Individual lowestSDIP depending operator mustbe depending evidenceof enced Drive0-5000 ormarried steptosave ontypeof is65yrs. equipped ontypeof purchaseof drivers milesperyear. couplewho 42%offliability device(s). orolder. withair device. 11 monthsof completing 5%Discount: havemore coverages; Noinex- bagor commuter approved Drive5001- thanonecar 30%off perienced automatic passesfrom training 7500miles insured with collision drivers seatbelts. qualified course, peryear. thesame coverage. on policy. transit save 10% company. Carsused system, first3years. Experienced inbusiness $75max. driversonly. ineligible. Safe Driver Insurance Plan (SDIP) PENDING CHANGES At publication time, changes to PAY MORE ease some SDIP surcharges were Up to 140% more being reviewed. Check any inserts for certain premiums in this booklet or contact your agent or company for the latest information. Summary PAY LESS Up to 42% less for certain What premiums is it? SDIP is a program that encourages safe driving by rewarding low-risk drivers and making sure high-risk drivers pay their fair share of insurance costs. How Can Affect Me? it Credits and surcharges are based on your driving history record. You can earn credits How Know for safe driving that will save you nearly 50% Will I if I Will Earn a Credit on certain coverages, or you can accrue or Pay a Surcharge? surcharges for poor driving that could more Unless all of the drivers on your policy have than double your premiums for certain had perfect driving history records during coverages.* your policy's Experience Period (a multiple year period, determined by the Commis- What Coverages are Affected sioner of Insurance, which precedes your by SDIP? policy effective date), your company must — send you an SDIP Statement. Bodily Injury to Others (BI) compulsory — The SDIP Statement shows each listed opera- Personal Injury Protection (PIP) tor's driving history record and the resulting compulsory SDIP Step. Steps higher than 15 result in a Damag—e to Someone Else's Property surcharge. Steps lower than 15 result in a (PDL) compulsory credit. Step 15, the SDIP starting step for all — • Collision optional drivers, has no effect on your premium. 8