With regards to car insurance premium rates, Massachusetts is the fourth most expensive state in the US. This state is also the one, which has some very stringent laws pertaining to car insurance. The traffic law of the state makes it mandatory for all the drivers to have minimum liability insurance for their car to legally be operative on roads.

The Massachusetts car insurance law consists of some basic requirements, which are as follows:

Massachusetts is one of the few states in the US, which follows the no-fault system. The state adopted this system mainly to curb the number of car accident cases. Since Massachusetts is a no-fault state, every driver has to have a minimum PIP coverage of $8,000 to pay for his own medical and vehicle damage expenses. The amount may sound like a very high price, but this is the way by which the state makes sure that citizens of the state have enough coverage if they get into a major accident. Not many would relish shelling out such a large amount, but if they happen to get into a major accident, they would realize the importance of the law.

The state laws require every driver to have a minimum coverage for bodily injury for a single person to the tune of $20,000, coverage for property damage to the tune of $5,000 and $40,000 for covering the medical expenses of all the members who suffer injuries in an accident. The law in Massachusetts is so stringent that if the expenses for any of the damages exceed the minimum liability amount, the driver has to bear the extra amount and has to pay out of his own pockets.

Unlike in other states, it is mandatory for every driver n Massachusetts to have Un-insured/under-insured coverage. Though buying this car insurance coverage would raise your premium rates, it is advisable to have this coverage because it would give you protection if you get into an accident with another driver who is unable to pay for your damages.

If you are driving in Massachusetts, you must always carry your uninsured/underinsured coverage proof along with you personal car insurance to avoid any penalty or getting a ticket.

Drivers failing to carry the minimum auto insurance requirements in MA, can be fined up to $5000 plus jail term of up to one year.

Further information on Massachusetts auto insurance is available from MA Division of Insurance, located in Boston, at their website www.mass.gov/doi, or by calling their office at 1-617-973-8787.

Because of such stringent car insurance laws, many insurance companies find it difficult to operate in the state and they consider moving out. Fewer companies mean the premium rates would go higher. However, recently some laws have been enacted to make the car insurance liberal.