See our General FAQ

Frequently Asked Questions
About Insurance

The following information, made available by the Massachusetts Division of Insurance, is intended to help consumers answer some of the most frequently asked questions about personal automobile insurance. While reasonable efforts have been made to ensure that this information is accurate, it is general in nature and may not apply to your specific situation. You are urged to contact your insurance agent, broker, company or the Division of Insurance with your specific situation.

Are there any specific time limits for an insurance company to pay for collision or comprehensive claims?
There are no specific time limits for the settlement of claims. Insurance companies are required by law to pay all claims in a prompt and reasonable amount of time. However, what constitutes "prompt and reasonable" may vary from claim to claim. Claims that require special or extended investigation may take longer to resolve. Inclement weather conditions often cause an increase in the number of claims filed and that can slow the process down as well.

My auto was declared a total loss following an accident. Is my insurance company required to give me replacement cost?
When your auto is declared a total loss, your insurance company will only pay you the actual cash value of the auto as of the date of the loss, not the cost to replace it. Your auto's value is determined by the following factors: the retail value for an auto of like kind and quality prior to the accident; the price paid for the auto plus the value of prior improvements to the auto at the time of the accident; the decrease in value of the auto resulting from prior unrelated damage which is detected by the appraiser or for which a claim has been paid; and the actual purchase cost of an available auto of like kind and quality.
If your auto has substantial value because of its exceptional condition such as an antique, classic, or restored auto, you should have it appraised and then insure it for the appraised value.

Do I have to pay an insurance premium after my auto is declared a total loss?
Yes, the auto is considered insured until the policyholder returns the license plates to the Registry of Motor Vehicles. If you don't have your license plate because your auto was stolen or because your auto and plates were destroyed in a fire, you must go to the nearest Registry of Motor Vehicles office and obtain a lost or stolen plates receipt. This receipt must be presented to your insurance company in order to cancel your policy and avoid paying any additional premium.

May I keep my auto if I have a collision, limited collision or comprehensive claim and my insurance company declares it a total loss?
Your insurance company has the option to take title to your auto when it issues payment on your claim. The insurer is entitled to any salvage value your auto may have. You can, of course, negotiate with your company to purchase your auto for the agreed salvaged value.
The body shop is repairing my auto after an insured loss. Will my insurance company pay for the original equipment manufacturer (OEM) parts?

If the repair of the damaged part impairs the operational safety of the auto, the insurance company will pay to replace it with an OEM part. For non-safety parts, unless your claim occurs during the first 15,000 miles on the auto’s odometer, you are not entitled to OEM parts. For autos with more than 15,000 miles, state regulation allows for the replacement of damaged parts with used, reconditioned or after market parts. You can insist on OEM parts, but you will have to pay the difference in cost.

An object damaged my windshield and I am unable to determine where it came from. Am I covered for this loss?
Yes, if you have comprehensive insurance you are covered for the full amount of the loss, unless you opted for a $100 deductible for glass breakage. The $300, $500, or $1000 deductible, or whatever you may have selected for comprehensive coverage, does not apply to a glass loss.

Can my insurance company deny a claim for damages to my auto if the principle place of garaging listed on my application is false?
Yes. If you or someone on your behalf gives false, deceptive, misleading or incomplete information on any application and if such information increases the insurance company's risk of loss, your company may then refuse to pay claims under any or all of the Optional Insurance coverages of the policy. Such information includes the description and place of garaging of the vehicles to be insured, the names of the operators required to be listed and the answers given for all listed operators.
In the event that you have moved since you filled out your initial application, promptly notify your insurance company and the Registry of Motor Vehicles of your new address.

Is my insurance company required to notify me of its decision to cancel my policy?
Yes. Your company must send you a notice at least 20 days prior to the effective date of the cancellation. A notice sent by regular mail with a certificate of mailing receipt obtained by the Post Office is considered sufficient. Certified or registered mail with a return receipt is no longer required.
What can I do if I actually receive a cancellation notice?
You can pay the exact amount called for on the notice or, if you feel that the cancellation is unjust, you may submit a written appeal to the Board of Appeals at One South Station, Boston, MA 02110-2208. This must be done prior to the effective date of cancellation.

Who is liable for the storage charges on my damaged auto when there is a dispute as to the amount of the claim payment?
The insurance company is responsible for paying storage charges until it makes a reasonable offer to settle the claim. However, if the consumer disputes the amount offered and the company revises its offer, this does not necessarily mean that the original offer was unreasonable. Disputes over what is reasonable can be resolved with your company through the process described in your insurance policy. You can also submit a written complaint to the Division of Insurance if you are unable to settle the dispute.

May an insurance company request a down payment in advance when I purchase or renew an auto insurance policy? And is it possible to pay my monthly premium?
Your insurance company may request up to a 30 percent down payment of the annual premium prior to the renewal or issuance of your policy. Many companies offer an installment payment plan for the balance of the premium. You should check with your agent or company to see what options are available to you.

If I own an auto with collision and comprehensive coverage, will my insurance apply to a rental or borrowed private passenger auto?
Yes. Your collision and comprehensive insurance coverages are transferable to a substitute rented or borrowed private passenger auto that is damaged while it is being operated by you or members of your household with the consent of the owner. There is no coverage under your policy for family friends or significant others. You should be aware that your coverage is available only if you rent or borrow a private passenger auto in the United States or Canada. You should also be aware that your policy does not provide coverage for a borrowed or rented truck. If you are renting a truck, you should check with the rental company regarding the purchase of collision and comprehensive insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation. If the use is for business rather than pleasure, call your agent first. Business use is usually not covered under your personal auto insurance policy.

How do I go about switching insurance companies without paying a penalty?
Once you receive an invoice reflecting new (not estimated) rates and any applicable new deviations or discounts, you have 30 days to change insurance companies without paying a "short rate" penalty. If you make a change within this 30 day period, you will pay your former insurance company on a pro-rata basis at its newly established rates until the date the coverage with your new insurance company begins. If you choose to switch insurance companies outside of the 30 day period, you will be subject to a short rate penalty which decreases as your policy year progresses.

Additional insurance related questions reprinted with permission of Karsner & Meehan, P.C, Attorneys at Law, Taunton, MA.

Who pays my medical bill?
The insurance company for the car you were in does. This is No-Fault insurance. Your medical bills will be paid no matter who is at fault in the accident.
If you have health insurance, No-Fault will pay the first $2,000.00 of your medical bills. Then the remainder is billed to your health insurance. If you do not have health insurance (or have Mass Health), then No-Fault pays up to $8,000.00 of your bills.

How about my wage loss?
No-Fault insurance will pay 75% of your actual wage loss. This is based on your average earnings in the one year before the accident date. No-Fault will force you to use any accumulated sick pay before it will begin paying.

Can I make a claim against the other driver?
Yes, if the other driver is at fault. However, you can only make a claim if your injuries result in a fracture (including broken tooth), a scar, amputation, death, or permanent loss of some sight or hearing, or if your medical bills exceed $2,000.00

Who is considered to be at fault?
Usually, the driver who acts carelessly or violates the rules of the road is. In simpler cases, this is a matter of the at-fault driver running a red light, passing in a no-passing zone, speeding, etc. At times, the question is more involved and requires further investigation.

What happens to my claim if the other car is not insured?
In most cases, you are covered by the uninsurance coverage on the car owned or were riding in. This insurance protects you in the same way as if the other driver had insurance on his car.

If I make a claim for these benefits, will my premiums go up?
No. The only way that your premiums will go up (surcharge) is if you cause an accident. Remember that you have been paying premiums to insurance companies for years. They cannot penalize you if you make a claim for benefits that are yours.

The other driver doesn't have enough insurance -- what now?
Many people are protected by underinsurance coverage. Unlike uninsurance coverage, this is not mandatory (and too many people fail to have it). If you have purchased underinsurance coverage, then you and your family members are protected even if the at-fault driver did not have enough. Special rules apply to this coverage, and you should consult an attorney without delay.

How and when will my car be repaired?
If you have collision or limited collision coverage, call your agent so that an appraisal will be set up. Then you may take your car to any repair shop you choose.
If you do not have collision coverage, then contact the insurance company for the at-fault driver. They will set up an appraisal and you can still choose a repair shop.

What if my car is totaled?
You would receive the fair market value ("Blue Book") for your car plus 5% Massachusetts sales tax. Unfortunately, our law does not give you payment for replacement cost. Many people suffer a financial loss if their car has been totaled.

The following questions address Insurance Settlements. Courtesy of Insurance Consumer Advocate Network.

Will my repaired vehicle be worth what it was before the accident?
Probably not. If your vehicle was substantially damaged in the current accident and has no history of significant collision involvement, you probably have sustained a post-repair reduction in the resale value of your vehicle. In most states you are entitled to be compensated, by the other party's insurance company (if the other party were at fault), for any reduction in the resale value of your repaired vehicle. In some states, you can even collect for this damage from your own collision carrier.

How are Total Loss settlements figured?
Most all Total Loss Settlements are based upon the pre-loss actual cash value (ACV) or depreciated value of the vehicle. In order to define a realistic ACV it is necessary to find vehicles comparable to the Total Loss vehicle and see how much they are being sold for. To that amount the insurance company should add sales tax, title and registration fees. However, the ACV of your vehicle could vary dramatically based upon the motivation of the appraiser locating the "Comp" vehicles. Most insurance companies use an independent automated market survey service to locate "Comps" and make a value recommendation for the Total Loss vehicle. As there are more than one such automated services competing for work from various insurance companies, there is an implied incentive to have a service provide lower priced Comps which will save insurance companies money and theoretically encourage an insurance company to use that service again in the future. It is for this reason that more and more consumers are exercising their right to appraisal which is discussed in the next section.

What if I do not agree with the settlement being offered?
Your auto insurance policy probably has an Appraisal Clause. If you and your insurance company do not agree as to the settlement value of your damage claim, either you or the company may invoke the Appraisal Clause. That means you would hire an appraiser to represent your interests, the insurance company would hire an appraiser to represent their interests and they would hire a third appraiser to act as "Referee". If the first two appraisers fail to reach an agreement as to a reasonable settlement value, they would each submit their figures to the third appraiser for determination. If either of the first two appraisers agrees with the determination of the third appraiser, the settlement amount has been resolved and is binding on the insurance company. In this process, the insured pays the fee of their appraiser. The insurance company pays the fee of their appraiser. The insured and insurance company split the fee of the third appraiser. Submitting your claim settlement value dispute to appraisal can be quick, cost effective and can result in a settlement increase. Unfortunately, your right to appraisal exists only in matters of dispute between you and your own insurance company. You have no right to appraisal in matters of dispute between you and the other party's insurance company. If the other party's insurance company does not agree to submit your dispute to appraisal, your only remaining option would then be litigation.