Collision Course

By Mark Tanner, Esq.

We help a great many people who have been involved in automobile collisions, including those who have been injured in automobile collisions through no fault of their own. One of the first questions we ask our clients is, “what insurance coverage do you have?” You would be amazed at how many people don’t know or understand their automobile-insurance coverage.

To better understand your coverage, start with your insurance broker. Ask your broker to provide you with your coverage selections page, a document that outlines the types and amounts of insurance coverage you have.

A number of different types of automobile insurance are available. Comprehensive protects your vehicle from damage caused by events other than a collision, such as vandalism and theft. Collision pays for damage to your vehicle when you collide with another car. The amount of coverage you need for these types of insurance depends largely on the value of your car.

Mark Tanner

“If you really think about it, the minimum coverage mandated by Massachusetts is probably insufficient to cover a serious auto accident. It would be smart to speak with your broker about increasing this coverage over the minimum.”

Since we’re talking about collisions, let’s discuss some important types of coverage that often come into play after an automobile accident, are highly variable, and can often be increased or decreased depending on your personal situation.

Personal-injury Protection (PIP)

PIP coverage pays up to $8,000 of your medical expenses and lost wages you suffered as the result of a collision and is mandatory in Massachusetts policies. You should know that, to reduce policy premiums, some insurers offer an $8,000 ‘PIP deductible,’ which means you have to pay the first $8,000 of PIP coverage out of pocket. This effectively means you have no PIP coverage, since you must pay the $8,000 deductible, and the coverage limit is $8,000. Think long and hard before you agree to this deductible to decrease the cost of your policy.

Bodily Injury to Others (BI)

BI coverage insures you against injuries you cause to others. In Massachusetts, the minimum BI limits are $20,000/$40,000, meaning there is $20,000 in coverage per injured person, up to a maximum of $40,000 if more than one person is hurt in the accident. This coverage pays for medical bills, lost wages, pain and suffering, and the like. If you really think about it, the minimum coverage mandated by Massachusetts is probably insufficient to cover a serious auto accident. It would be smart to speak with your broker about increasing this coverage over the minimum.

Damage to Someone Else’s Property

Property damage is coverage that insures you for damage you cause to another person’s property. In Massachusetts, the mandatory coverage is $5,000. Like BI coverage, it is possible to increase the limits of your property-damage coverage. With the ever-increasing cost of cars, and the real possibility that a serious collision might involve more than one car, a house, or who knows what, you should discuss this coverage with your broker to make sure you have adequate coverage.

Under/Uninsured Motorist Coverage (UM)

UM coverage often comes into play when we represent people injured in a collision through no fault of their own. UM coverage protects you against injuries, medical bills, lost wages, and the like caused by a driver who is uninsured or underinsured. Like BI, the minimum limits for UM coverage are $20,000/$40,000.

Here’s where it gets tricky. If you and the at-fault driver each have the minimum $20,000/$40,000 coverage, then you effectively have no UM coverage, since the amount of coverage available is determined by subtracting the at-fault driver’s BI coverage from your UM coverage. For example, if the at-fault driver has $20,000/$40,000 BI, and you have $100,000/$300,000 UM, then you have $80,000 per person (or $260,000 per collision if multiple people are injured). You can access your UM coverage once you have received the policy limits of the at-fault driver’s policy.

Given the number of drivers who carry only the mandatory $20,000/$40,000 BI coverage, it would be smart to speak with your broker about increasing this coverage.

More Words to the Wise

Make sure your car is garaged at the address shown on your insurance policy. If you have moved, or the car is regularly kept in a different location than is listed on your policy, and you do not tell your insurance company, the insurance company can deny coverage if you are in an accident.

Next, make sure anyone who regularly drives your car is named as an insured on your policy. If you don’t, and they are involved in a collision, your insurer may deny all or a portion of your claims.

Car accidents are never good and always unexpected. Reviewing and adjusting your coverages now can help make sure you are in the best possible position if you are involved in a collision. Your insurance broker can help you determine the types and levels of coverage you need. If you are in a collision, Bacon Wilson can help you navigate this complex process and make sure you receive full and fair compensation for your injuries. If you cause a collision and need help understanding your insurance coverage or need to deal with your insurer, we can help with that as well.

This article is presented for information purposes only, is not legal advice, and does not create an attorney-client relationship. Note that all mandatory coverage limits are increasing effective July 1, 2025.

Mark Tanner is a shareholder with the law firm Bacon Wilson, P.C. and chairs the firm’s Litigation department. He is an active member of the Hampden and Hampshire County bar associations as well as a board member for Community Involved in Sustaining Agriculture Inc., People’s Institute, and Franklin County Community Development Corp. He is licensed to practice law in Massachusetts and New York; (413) 781-0560; [email protected]