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How Do Car Accident Settlements Work?


In Massachusetts, drivers are required to have specific types of insurance that also have minimum amounts of car insurance coverage. In most cases, additional coverages are available but in Massachusetts, you are required to have the following four types of coverage with minimum limits:

  1. Bodily Injury to Others
    1. $20,000 per person
    2. $40,000 per accident
  2. Personal Injury Protection (PIP) 
    1. $8,000 per person, per accident
  3. Bodily Injury caused by an uninsured auto
    1. $20,000 per person
    2. $40,000 per accident
  4. Damage to someone else’s property
    1. $5,000 per accident

In Massachusetts, car accident settlements work through the “no-fault” system which applies for car accidents and insurance claims. Before seeking compensation from the other party, you must first connect with your insurance company for personal injury compensation before pursuing damages against the other driver and their insurance company. With Personal Injury, damages are usually divided into two categories; economic and noneconomic. The most common types of car accident damages include; car repairs, medical expenses, lost wages due to work, physical pain, and emotional distress. In Massachusetts, you have three years to file a claim for both personal injury and property damage, with the date commencing from the day of the accident. 

While Massachusetts applies the no-fault rule for insurance claims, you should never accept the insurance company’s initial settlement offer without first consulting with a lawyer. As discussed in my book, The Truth About Massachusetts Auto Accidents, insurance companies are less likely to provide adequate compensation if they know the client is not being represented. If you’ve been in a car accident, reach out to our office at 617-444-7777 for a free, no obligation consultation. 

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