Every state has its own minimum requirements for auto insurance. In New Hampshire there is no law requiring any type of auto insurance, except in certain circumstances such as DWI convictions or other negative marks on the driver's record. However, the state does offer suggestions for minimum coverage should a resident decide to purchase auto insurance.
In Massachusetts, on the other hand, drivers are required to purchase auto insurance with minimum liability coverage (for each accident) of $20,000 per person, $40,000 for all injuries and $5,000 in property damage coverage.
Why should you purchase insurance coverage above state law requirements? Because, given a worst-case accident scenario, you will want to have enough coverage to protect yourself, your home and your family. State required minimums may not be enough should you cause a serious accident or become involved in one where the other driver is uninsured or underinsured. Your independent insurance agent can advise you, based on your financial situation, about the following types of auto insurance that will protect you above any state law requirements.
Collision Coverage
Collision coverage is used to cover damage to your vehicle after a crash with another auto or object regardless of fault. Without this coverage you could pay out of pocket to repair your vehicle. Collision coverage contains a deductible amount between $300 and $2,000 in Massachusetts, and between $100 and $2,500 in New Hampshire, which the policy owner must pay before the policy pays out for repairs. How much of a collision deductible you should carry depends on the age of your car and your specific financial needs.
Comprehensive Coverage
This insurance coverage protects your vehicle if it is damaged in any way other than a collision. Vehicle damage caused by vandalism, theft, animals or natural disasters such as floods, falling objects or fires are all covered by comprehensive coverage. Depending on the policy options, minor damages such as broken windshields are also covered. Deductibles are used for comprehensive coverage and can also range between $300 and $2,000 in Massachusetts and between $50 and $2,500 in New Hampshire.
Additional Insurance Coverage
“Uninsured and underinsured motorist coverage” can also be included with your auto insurance package. These types of additional coverage pay for injuries to you, a family member or a designated driver should one of you be hit by a driver with too little or no insurance. Your protection also extends during a hit-and-run accident. Another benefit of this type of additional insurance is that you are covered should you be hit by a vehicle as a pedestrian.
Without adequate car insurance coverage, it is possible for one accident to wipe out any personal savings, whether through a lawsuit against you or the high costs of medical care. For these reasons, it makes sense to purchase auto insurance above state law requirements.
Please contact your independent insurance agent to ensure you are protected.
