1076 lines
52 KiB
Plaintext
1076 lines
52 KiB
Plaintext
|
"Buying Your Massachusetts Automobile Insurance" has been
|
|||
|
prepared for you by the Massachusetts Division of Insurance as
|
|||
|
part of our continuing effort to inform consumers on the
|
|||
|
detailed and sometimes complex aspects of purchasing automobile
|
|||
|
insurance in the Commonwealth. This guide outlines the basic
|
|||
|
automobile coverages you are required by law to purchase, as
|
|||
|
well as the coverages available to you on an optional basis.
|
|||
|
We have also included a description of the newly amended Safe
|
|||
|
Driver Insurance Plan - the Commonwealth's merit rating plan
|
|||
|
which offers premium credits to policyholders who practice safe
|
|||
|
driving habits. Furthermore, this guide provides information
|
|||
|
on filing complaints and money-saving tips for reducing your
|
|||
|
premium without sacrificing insurance protection.
|
|||
|
|
|||
|
If you receive this pamphlet after you purchase your 1990
|
|||
|
automobile insurance and you wish to make changes in the
|
|||
|
coverage, limits, deductibles or discounts, contact your agent
|
|||
|
or company. They can assist you. If you are not satsified
|
|||
|
call us. Our Consumer Service Section can be contacted at
|
|||
|
(617) 727-7189, X 300.
|
|||
|
|
|||
|
|
|||
|
As you know, the Automobile Insurance Reform Act of 1988
|
|||
|
succeeded in updating our no-fault system, lowered the costs of
|
|||
|
repairing damaged vehicles, expanded consumers' choices and
|
|||
|
initiated long-term, cost-saving efforts that will benefit
|
|||
|
consumers into the 1990s.
|
|||
|
|
|||
|
The 1988 Reform Law addressed the rising costs in the system
|
|||
|
through both tort law changes, such as the increase in the tort
|
|||
|
threshold from $500 to $2000, and coverage changes, including
|
|||
|
the increase in Personal Injury Protection (PIP) from $2,000 to
|
|||
|
$8,000, and the coordination of benefits between health
|
|||
|
insurance and PIP coverage. Consumers have realized reduced
|
|||
|
premiums from additional coverage changes and newly available
|
|||
|
discounts. The Reform Law increased the standard deductible
|
|||
|
from $300 to $500 for both collision and comprehensive
|
|||
|
coverages and created an optional $100 glass deductible. Also,
|
|||
|
additional rated reductions are now available for consumers
|
|||
|
whose vehicles are equipped with both an anti-theft device and
|
|||
|
an auto recovery system, and for cars equipped with air bags or
|
|||
|
passive restraint devices.
|
|||
|
|
|||
|
A new Safe Driver Insurance Plan will mean substantially
|
|||
|
reduced premiums for long time good drivers.
|
|||
|
|
|||
|
This year, a new Safe Driver Insurance Plan takes effect. The
|
|||
|
aim of the Plan is to make the Massachusetts merit rating
|
|||
|
system more fair by ending the subsidization of unsafe drivers
|
|||
|
by good drivers. The Plan, known as a "bonus malus" system,
|
|||
|
can be compared to a ladder. The bottom of the ladder
|
|||
|
represents the lowest premiums and the top of the ladder
|
|||
|
represents the highest premiums. Drivers will be assigned
|
|||
|
credits and surcharges that are a percentage of the premium for
|
|||
|
specific coverages. Each year, drivers with an incident-free
|
|||
|
record move down one step on the ladder and earn a premium
|
|||
|
credit. Drivers who have at-fault accidents or certain traffic
|
|||
|
violations move up the ladder a number of steps equal to the
|
|||
|
number of unsafe driver points assigned and will be assessed a
|
|||
|
surcharge for each point. Each step up or down the ladder is
|
|||
|
equal to 7% of the driver's premium for liability coverage
|
|||
|
(bodily injury, PIP, and property damage liability) and 5% of
|
|||
|
the premium for collision coverage.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
BUYING YOUR MASSACHUSETTS
|
|||
|
|
|||
|
AUTOMOBILE INSURANCE
|
|||
|
|
|||
|
1990
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
MICHAEL S. DUKAKIS
|
|||
|
Governor of Massachusetts
|
|||
|
|
|||
|
|
|||
|
TIMOTHY H. GAILEY
|
|||
|
Commissioner of Insurance
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Commonwealth of Massachusetts
|
|||
|
Division of Insurance
|
|||
|
|
|||
|
|
|||
|
CONTENTS
|
|||
|
|
|||
|
1. COMPULSORY COVERAGES
|
|||
|
Part 1: Bodily Injury to Others..................
|
|||
|
Part 2: Personal Injury Protection...............
|
|||
|
Part 3: Bodily Injury Caused by an
|
|||
|
Uninsured Auto...........................
|
|||
|
Part 4: Damage to Someone Else's Property........
|
|||
|
2. OPTIONAL COVERAGES
|
|||
|
Part 5: Optional Bodily Injury to Others.........
|
|||
|
Part 6: Medical Payments.........................
|
|||
|
Part 7: Collision................................
|
|||
|
Part 8: Limited Collision........................
|
|||
|
Part 9: Comprehensive............................
|
|||
|
Part 10: Substitute Transportation................
|
|||
|
Part 11: Towing and Labor.........................
|
|||
|
Part 12: Bodily Injury Caused by an
|
|||
|
Underinsured Auto........................
|
|||
|
3. SAVING MONEY...........................................
|
|||
|
4. 1990 SAFE DRIVER INSURANCE PLAN........................
|
|||
|
5. FILING A COMPLAINT.....................................
|
|||
|
|
|||
|
|
|||
|
|
|||
|
FROM THE COMMISSIONER
|
|||
|
|
|||
|
"Buying Your Massachusetts Automobile Insurance" has
|
|||
|
been prepared for you by the Massachusetts Division of
|
|||
|
Insurance. This guide contains a description of the basic
|
|||
|
coverages you are required by law to purchase, as well as the
|
|||
|
coverages available to you on an optional basis. We have also
|
|||
|
included information on filing complaints and money-saving tips
|
|||
|
for reducing your premium without sacrificing insurance
|
|||
|
protection.
|
|||
|
Many motorists pay a higher premium than they should
|
|||
|
because they choose coverages that do not suit their needs.
|
|||
|
The most common and costly mistake consumers make when buying
|
|||
|
automobile insurance is to renew their policy without assessing
|
|||
|
how their individual insurance needs might have changed.
|
|||
|
Instead, before you renew your policy, reevaluate your
|
|||
|
insurance choices and your eligibility for the many discount
|
|||
|
opportunities. Also, buy only the coverage you need and select
|
|||
|
deductibles you can afford.
|
|||
|
The Safe Driver Insurance Plan (SDIP), which offers
|
|||
|
premium credits to motorists who practice safe driving habits,
|
|||
|
has been significantly changed for 1990. Although automobile
|
|||
|
insurance will always be expensive in an urban, densely
|
|||
|
populated state like Massachusetts, you can reduce the cost of
|
|||
|
your premium an average of $140 by driving safely and
|
|||
|
maintaining an incident-free driving record. Although the Plan
|
|||
|
is complex, I urge you to read Part 4 of this guide carefully
|
|||
|
for information on the Plan's many new improvements.
|
|||
|
Please keep in mind that this guide is not meant to be a
|
|||
|
substitute for the Massachusetts Automobile Insurance Policy.
|
|||
|
Always refer to your Policy for the exact terms and conditions
|
|||
|
of your automobile insurance. If you receive this guide after
|
|||
|
you have renewed your policy for 1990, and you wish to make
|
|||
|
changes in your coverage, limits, deductibles or discounts,
|
|||
|
contact your agent or company. They can assist you in making
|
|||
|
the necessary changes. If you need further information on
|
|||
|
automobile insurance, contact the Division of Insurance at 280
|
|||
|
Friend Street, Boston, MA 02114 (617) 727-7189 or 436 Dwight
|
|||
|
Street, Room 338, Springfield, MA 01103, (413) 784-1190.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Timothy H. Gailey
|
|||
|
Commissioner of Insurance
|
|||
|
|
|||
|
|
|||
|
|
|||
|
COMPULSORY COVERAGES
|
|||
|
|
|||
|
Since 1927, under Massachusetts insurance law, motorists
|
|||
|
have been required to purchase compulsory motor vehicle
|
|||
|
liability insurance. All registered motor vehicles in the
|
|||
|
Commonwealth must be insured under Parts 1, 2, 3 and 4 of the
|
|||
|
Massachusetts Automobile Insurance Policy. When you buy this
|
|||
|
insurance, you receive financial protection in case you become
|
|||
|
involved in an accident.
|
|||
|
Of course, not all insurance-buying decisions are simple
|
|||
|
or clear-cut, because you cannot predict the future. When in
|
|||
|
doubt, remember that it is more important to have insurance
|
|||
|
against large losses which could threaten your standard of
|
|||
|
living than smaller losses that you can afford to pay yourself.
|
|||
|
|
|||
|
Compulsory Coverages
|
|||
|
Part 1: BODILY INJURY TO OTHERS will pay for the damages
|
|||
|
to anyone injured or killed by your auto in Massachusetts up to
|
|||
|
a limit of $10,000 per person and $20,000 per accident.
|
|||
|
Part 1 applies whether your auto is being driven by you
|
|||
|
or by someone else with your permission. However, this
|
|||
|
coverage never covers injuries to the driver of your auto or to
|
|||
|
guests in your auto.
|
|||
|
Limits higher than $10,000 per person and $20,000 per
|
|||
|
accident and coverage for injuries incurred by guest occupants
|
|||
|
of your auto and for out-of-state accidents may be purchased
|
|||
|
under Part 5.
|
|||
|
|
|||
|
Part 2: PERSONAL INJURY PROTECTION (PIP), provides
|
|||
|
payment of up to $8,000 to you, anyone driving your auto with
|
|||
|
your consent, anyone living in your household, passengers in
|
|||
|
your auto and pedestrians struck by your auto, for expenses
|
|||
|
incurred as the result of an accident, without regard to
|
|||
|
fault. PIP pays for medical expenses, replacement services and
|
|||
|
75% of any lost wages.
|
|||
|
If you already have good health insurance and disability
|
|||
|
health plans - provided by your employer, for example - you
|
|||
|
should consider taking a deductible and excluding yourself and
|
|||
|
the members of your household from this coverage. However,
|
|||
|
remember that even with a comprehensive health insurance plan,
|
|||
|
you would not be provided with coverage for lost wages and
|
|||
|
replacement services, unless your employer offers a wage
|
|||
|
continuation program.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Even with a large deductible for you and members of your
|
|||
|
household, guests in your automobile and pedestrians are still
|
|||
|
fully covered.
|
|||
|
|
|||
|
Part 3: BODILY INJURY CAUSED BY AN UNINSURED AUTO
|
|||
|
protects you, members of your household, and guests in your
|
|||
|
automobile against losses caused by an uninsured automobile, or
|
|||
|
from a hit-and-run accident, unless the household member or
|
|||
|
guest is protected by their own or another auto insurance
|
|||
|
policy. In addition, this coverage protects you and members of
|
|||
|
your household as pedestrians against injuries caused by an
|
|||
|
uninsured auto or a hit-and-run driver.
|
|||
|
Compulsory uninsured automobile coverage requires a
|
|||
|
minimum limit of $10,000 per person and $20,000 per accident.
|
|||
|
Increasing this coverage makes good sense for most people,
|
|||
|
especially for persons who travel outside of Massachusetts, as
|
|||
|
compulsory auto insurance is not mandatory in all states.
|
|||
|
Please keep in mind that you can purchase Part 3
|
|||
|
coverage with limits that are lower than but not higher than
|
|||
|
the limits you purchase for Part 5. It is recommended that you
|
|||
|
purchase this coverage in limits equal to the limits you
|
|||
|
purchase under Part 5.
|
|||
|
Part 4: DAMAGE TO SOMEONE ELSE'S PROPERTY pays for
|
|||
|
property damage and for costs resulting from the loss of the
|
|||
|
use of property damaged from an accident caused by you, a
|
|||
|
household member or anyone using your auto with permission.
|
|||
|
This Part never covers damage to your automobile or property.
|
|||
|
The minimum amount required is $5000. However, you
|
|||
|
should consider purchasing this insurance with higher limits.
|
|||
|
Today's new car and repair prices being what they are, a limit
|
|||
|
of $25,000 is a good choice for many people.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
OPTIONAL COVERAGES
|
|||
|
|
|||
|
There are eight other coverages available to you in
|
|||
|
addition to the compulsory insurance, and in general it is up
|
|||
|
to you whether you purchase them or not. These optional
|
|||
|
coverages provide additional protection against financial loss
|
|||
|
resulting from an automobile accident. If you have borrowed
|
|||
|
money to purchase your automobile, your lender may legally
|
|||
|
require you to carry the optional coverages, Collision (Part 7)
|
|||
|
and Comprehensive (Part 9).
|
|||
|
. Your insurance company may refuse to issue you some optional
|
|||
|
coverages because of certain prior driving violations or
|
|||
|
insurance-related crimes.
|
|||
|
|
|||
|
Optional Coverages
|
|||
|
Part 5: OPTIONAL BODILY INJURY TO OTHERS allows you to
|
|||
|
extend the protection you must purchase under Part 1, by
|
|||
|
offering coverage above the $10,000/$20,000 limit for injuries
|
|||
|
caused by you in Massachusetts, in other parts of the United
|
|||
|
States and in Canada.
|
|||
|
Unlike the compulsory Bodily Injury insurance, Part 5
|
|||
|
will pay for injuries to guests of your automobile and for
|
|||
|
injuries to others caused by any person who is using your car
|
|||
|
with your consent.
|
|||
|
To protect your assets and future income, it makes good
|
|||
|
sense to buy higher limits under this Part; $100,000 per person
|
|||
|
and $300,000 per accident will meet most drivers needs. Such
|
|||
|
additional coverage is valuable since, considering the rising
|
|||
|
costs of medical and hospital care, court judgments can easily
|
|||
|
exceed $20,000.
|
|||
|
|
|||
|
Part 6: MEDICAL PAYMENTS covers medical expenses for
|
|||
|
injuries resulting from any accident involving you, any
|
|||
|
household member and any passenger, once the limits provided
|
|||
|
under Part 2, Personal Injury Protection have been exhausted.
|
|||
|
It does not cover lost wages. Drivers who have comprehensive
|
|||
|
health insurance plans may not need the extra coverage provided
|
|||
|
under Part 6.
|
|||
|
You should, however, think about buying this Part if you
|
|||
|
and your household members do not already have adequate health
|
|||
|
insurance or if you want this protection for passengers in your
|
|||
|
automobile.
|
|||
|
|
|||
|
Part 7: COLLISION insurance pays for damage to your
|
|||
|
automobile caused by a collision regardless of fault. The cost
|
|||
|
of collision protection varies with the model and year of your
|
|||
|
automobile, where it is garaged and the operator
|
|||
|
classification. Because it pays for damages regardless of
|
|||
|
fault, this Part is expensive to purchase.
|
|||
|
Unfortunately, there is no good rule-of-thumb to use
|
|||
|
when purchasing Collision coverage. If your automobile is
|
|||
|
financed, your lender may require you to carry this Part on
|
|||
|
your policy. However, if you own your automobile outright,
|
|||
|
your decision to purchase Collision should depend on whether or
|
|||
|
not you can afford to replace your automobile without help from
|
|||
|
your insurance company.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
A deductible is the portion of each claim you agree not
|
|||
|
to be covered for. For example, if you purchase Collision with
|
|||
|
the standard $500 deductible and you suffer a loss of $700, you
|
|||
|
will collect $200 from your insurance company. If a loss of
|
|||
|
less than $500 occurs, you are responsible for the entire
|
|||
|
amount. Collision protection can be purchased at a much lower
|
|||
|
price when you purchase a deductible higher than the standard
|
|||
|
$500 deductible. Choose the larger deductible if you can
|
|||
|
afford to pay a larger loss out of your own pocket. You also
|
|||
|
have the option to purchase the more expensive $300
|
|||
|
deductible. The choice is not an easy one, so take the time to
|
|||
|
evaluate your financial circumstances when purchasing this and
|
|||
|
any other available deductible.
|
|||
|
Your company may require a $500 Collision or Limited
|
|||
|
Collision deductible if you have had a major at-fault accident
|
|||
|
within the previous three years.
|
|||
|
WAIVER OF DEDUCTIBLE coverage may be purchased at a
|
|||
|
higher premium if you opt to purchase Collision coverage. The
|
|||
|
Waiver of Deductible allows any deductible you choose to be
|
|||
|
ignored in cases of fault on the part of another identifiable
|
|||
|
driver. The deductible would not be waived in a hit-and-run
|
|||
|
accident, even if the unidentifiable party was completely at
|
|||
|
fault.
|
|||
|
You might choose to purchase the Waiver of Deductible
|
|||
|
for the benefit it offers if you are involved in an accident
|
|||
|
caused by an identifiable, insured driver. While many
|
|||
|
policyholders are willing to pay the additional cost for the
|
|||
|
Waiver of Deductible's convenience, others view the benefits as
|
|||
|
too few to justify the extra premium.
|
|||
|
NOTE: Your failure to list a household member as an
|
|||
|
operator on your policy may have very serious consequences.
|
|||
|
Your insurer will not pay for a Collision loss for an accident
|
|||
|
which occurs while your auto is being operated by a household
|
|||
|
member who is not listed as an operator on your policy.
|
|||
|
Payment is withheld when the household member, if listed, would
|
|||
|
require the payment of additional premium on your policy
|
|||
|
because the household member would be classified as an
|
|||
|
inexperienced operator or a higher rating step would be
|
|||
|
assigned under the Safe Driver Insurance Plan.
|
|||
|
|
|||
|
Part 8: LIMITED COLLISION also pays for damages to your
|
|||
|
automobile caused by a collision, although in limited
|
|||
|
circumstances. Because this coverage is not as broad as Part
|
|||
|
7, its cost is considerably less.
|
|||
|
This coverage will not pay for one-car accidents,
|
|||
|
accidents in which you are more than 50% at fault or for
|
|||
|
accidents where the owner or driver of the other vehicle cannot
|
|||
|
|
|||
|
|
|||
|
be identified. Limited Collision will pay for most other
|
|||
|
accidents and offers the convenience of dealing with your own
|
|||
|
insurance company.
|
|||
|
If you are willing to pay for the damage you might cause
|
|||
|
to your auto, or if the value of your auto does not justify
|
|||
|
purchasing full Collision coverage, then Limited Collision or
|
|||
|
no collision coverage is your best bet.
|
|||
|
You may reduce or eliminate the $500 standard Limited
|
|||
|
Collision deductible for an extra premium.
|
|||
|
NOTE: Your failure to list a household member as an
|
|||
|
operator on your policy may have very serious consequences.
|
|||
|
Your insurer will not pay for a Limited Collision loss for an
|
|||
|
accident which occurs while your auto is being operated by a
|
|||
|
household member who is not listed as an operator on your
|
|||
|
policy. Payment is withheld when the household member, if
|
|||
|
listed, would require the payment of additional premium on your
|
|||
|
policy because the household member would be classified as an
|
|||
|
inexperienced operator or a higher rating step would be
|
|||
|
assigned under the Safe Driver Insurance Plan.
|
|||
|
|
|||
|
Part 9: COMPREHENSIVE coverage will pay for losses which
|
|||
|
are not caused by a collision, such as fire, theft and
|
|||
|
vandalism losses. In addition, this insurance will pay you up
|
|||
|
to $15 a day for substitute transportation until your stolen
|
|||
|
auto is recovered (up to a limit of $450).
|
|||
|
Comprehensive coverage does not insure personal
|
|||
|
belongings in your auto unless they have been made a permanent
|
|||
|
part of your automobile. This means that clothing is never
|
|||
|
covered, but a C.B. radio permanently installed in the opening
|
|||
|
of the dash or console is.
|
|||
|
The standard deductible for Comprehensive coverage is
|
|||
|
$500, although you have the option to purchase a $300
|
|||
|
deductible. As with the Collision coverage, buying back to the
|
|||
|
lower deductible will raise your premium cost. Seriously
|
|||
|
consider choosing a larger deductible than the standard one if
|
|||
|
you can afford to pay a larger loss out of your own pocket.
|
|||
|
You should also consider installing an anti-theft device and/or
|
|||
|
a signal-activated vehicle recovery system. Anti-theft
|
|||
|
equipment and recovery system discounts, which are discussed in
|
|||
|
the Saving Money Section, range from 5% to 35%.
|
|||
|
You also have the option of purchasing a $100 deductible
|
|||
|
on glass claims. If you take a deductible, you will reduce the
|
|||
|
cost of your Comprehensive coverage by %, however if you have
|
|||
|
a claim for a broken windshield or other glass damage, you will
|
|||
|
have to pay for the first $100 of that damage.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Part 10: SUBSTITUTE TRANSPORTATION pays up to $15 a day
|
|||
|
for car rental, taxicab fares and other transportation costs
|
|||
|
(up to a limit of $450).
|
|||
|
You should carefully consider whether you need this
|
|||
|
coverage. Claims for loss of use caused by another driver are
|
|||
|
generally payable under that driver's Damage To Someone Else's
|
|||
|
Property coverage (Part 4). Comprehensive Coverage (Part 9)
|
|||
|
provides reimbursement for loss of use resulting from theft.
|
|||
|
Moreover, Substitute Transportation coverage does not pay under
|
|||
|
all conditions. If your auto is being repaired or replaced
|
|||
|
because of damages that would be covered under Collision
|
|||
|
coverage (Part 7), you can collect under Part 10. There is no
|
|||
|
coverage, however, if your auto is merely in the shop for
|
|||
|
routine repairs.
|
|||
|
Please note that if you are under the legal age or have
|
|||
|
a poor credit rating you may be unable to rent a vehicle.
|
|||
|
However, you do remain eligible for the reimbursement of
|
|||
|
transportation expenses.
|
|||
|
|
|||
|
Part 11: TOWING AND LABOR will pay up to $25 for towing
|
|||
|
and labor charges each time your automobile breaks down. The
|
|||
|
cost of replacement parts is not covered and labor is covered
|
|||
|
only to get your auto going again at the place of breakdown.
|
|||
|
If you belong to a motor club, you may already have
|
|||
|
Towing and Labor coverage - so check your club's benefits
|
|||
|
before purchasing Part 11.
|
|||
|
Your insurance company may legally refuse to sell you
|
|||
|
Towing and Labor coverage.
|
|||
|
|
|||
|
Part 12: BODILY INJURY CAUSED BY AN UNDERINSURED AUTO
|
|||
|
will pay damages for bodily injury to people injured or killed
|
|||
|
as the result of certain accidents caused by someone who does
|
|||
|
not have enough insurance, up to the difference between the
|
|||
|
total amount collected from the automobile bodily injury
|
|||
|
liability insurance covering the owner and the operator of the
|
|||
|
auto and the limits you purchased for this coverage.
|
|||
|
Your company will pay damages to or for you, or any
|
|||
|
household member, unless the household member has his or her
|
|||
|
own Massachusetts auto policy or is covered by a Massachusetts
|
|||
|
auto policy of a household member providing similar coverage
|
|||
|
with higher limits, if you are injured as a pedestrian or while
|
|||
|
occupying an auto you do not own. It will also pay damages to
|
|||
|
or for anyone else occupying your auto unless that person has
|
|||
|
his or her own Massachusetts auto policy or is covered by a
|
|||
|
Massachusetts auto policy of any household member providing
|
|||
|
similar coverage.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Below are some examples of how this coverage works:
|
|||
|
EXAMPLE 1 - You do not buy the Underinsured Auto coverage. You
|
|||
|
are injured in an auto accident caused by the other driver who
|
|||
|
is legally responsible for your injuries. Your damages total
|
|||
|
$20,000. The other driver's Bodily Injury liability limit is
|
|||
|
$10,000. You can collect $10,000 from the other driver's
|
|||
|
insurance, but you must sue the other driver to collect the
|
|||
|
other $10,000. If the other driver has no assets, you could
|
|||
|
suffer a loss of $10,000.
|
|||
|
|
|||
|
EXAMPLE 2 - You purchase Underinsured Auto coverage limits of
|
|||
|
$20,000 per person; $40,000 per accident. Your damages are
|
|||
|
$30,000. The other driver's policy provides $10,000 of Bodily
|
|||
|
Injury liability insurance, which you collect from his
|
|||
|
company. You can only collect an additional $10,000 from your
|
|||
|
company. This is the difference between the amount collected
|
|||
|
from all automobile Bodily Injury liability limits and your
|
|||
|
Underinsured Auto limit of $20,000 for each person.
|
|||
|
|
|||
|
EXAMPLE 3 - You purchase Underinsured Auto coverage limits of
|
|||
|
$20,000 per person; $40,000 per accident. Your damages are
|
|||
|
$20,000. The other driver's policy provides $10,000 of Bodily
|
|||
|
Injury liability insurance which you collect from his company.
|
|||
|
Your Underinsured Auto coverage will pay you $10,000 in full
|
|||
|
payment of your outstanding damages. This is the difference
|
|||
|
between the other driver's Bodily Injury limits and your
|
|||
|
Underinsured Auto coverage limits.
|
|||
|
|
|||
|
Keep in mind that since all registered motor vehicles
|
|||
|
must have the compulsory Bodily Injury limits of $10,000 per
|
|||
|
person; $20,000 per accident, purchasing Underinsured Auto
|
|||
|
coverage limits of $10,000/$20,000 provides little or no
|
|||
|
coverage. If you choose to purchase Underinsurance coverage,
|
|||
|
you may buy limits that are less than but not higher than the
|
|||
|
limits purchased under Part 5, however it is recommended that
|
|||
|
you buy it in limits equal to the limits you purchase under
|
|||
|
Part 5.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
SAVING MONEY
|
|||
|
|
|||
|
Getting the discounts you are entitled to, paying
|
|||
|
attention to detail and driving conscientiously can all work to
|
|||
|
keep your insurance costs down. By following the suggestions
|
|||
|
listed below, you will maximize the available savings.
|
|||
|
|
|||
|
Be An Alert Shopper
|
|||
|
Before choosing your coverages, limits and deductibles,
|
|||
|
read the Massachusetts Automobile Insurance Policy carefully to
|
|||
|
be certain that you understand the coverages. Assess your
|
|||
|
driving habits in order to determine the coverages and limits
|
|||
|
you need. When filling out the application, make sure that you
|
|||
|
complete it accurately in order for your policy to be rated
|
|||
|
properly. Finally, when you receive your Coverage Selections
|
|||
|
Page, do not file it away without checking to see that the
|
|||
|
coverages, limits, deductibles, discounts and premium are
|
|||
|
correct.
|
|||
|
|
|||
|
Review Your Bill
|
|||
|
You do not leave the store without a receipt - and you
|
|||
|
should not buy auto insurance without an itemized bill!
|
|||
|
First, look at your bill to find out whether any part of
|
|||
|
the total cost is for service fees. Although some agents and
|
|||
|
brokers charge nothing for the additional effort needed to fill
|
|||
|
out various forms or to bring your license plates from the
|
|||
|
Registry, others will charge you a fee for performing such
|
|||
|
services. However, no agent or broker can charge service fees
|
|||
|
in connection with issuing or renewing your automobile
|
|||
|
insurance policy, nor are you legally bound to pay for any
|
|||
|
other services your agent or broker performs without your
|
|||
|
consent.
|
|||
|
Your itemized bill should tell you whether you have been
|
|||
|
enrolled in a motor club. Obviously, if you do not want to
|
|||
|
join a motor club or if you are already a member of a different
|
|||
|
motor club, you should not pay the membership dues. If you do
|
|||
|
belong to a motor club, check to see if membership includes
|
|||
|
benefits similar to the Towing/Labor and Substitute
|
|||
|
Transportation coverages - there is no point in buying
|
|||
|
duplicate coverage.
|
|||
|
Of course, the main thing your insurance bill will tell
|
|||
|
you is how much you owe. According to state law, no company,
|
|||
|
agent or broker can ask you to pay more than 30% of your
|
|||
|
premium before you renew your coverage (although you may pay
|
|||
|
more than 30% if you wish). However, if you have defaulted on
|
|||
|
a premium payment during the previous twenty-four months, your
|
|||
|
insurer can legally require payment of 100% of your premium.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Should you choose to pay less than your total bill, it
|
|||
|
is likely that you will have to pay some kind of finance
|
|||
|
charge. Choose your finance plan carefully. Commercial
|
|||
|
lenders and insurance premium finance agencies charge up to 18%
|
|||
|
interest per year on the unpaid balance. Insurance premium
|
|||
|
finance agencies may also charge an additional $16 fee for
|
|||
|
setting up the account.
|
|||
|
For many policyholders, another way of making time
|
|||
|
payments is to do business with an insurance company that will
|
|||
|
bill you in installments and charge a flat fee for each
|
|||
|
billing. These charges vary from company to company and
|
|||
|
according to the number of installments you want to make. In
|
|||
|
some instances the company's carrying charges will cost less
|
|||
|
than other financing arrangements.
|
|||
|
|
|||
|
Discount Opportunities
|
|||
|
Be particularly careful to answer those application
|
|||
|
questions relating to the following five discounts, which can
|
|||
|
cut your insurance costs considerably if you qualify for them.
|
|||
|
* Low Mileage Discount - If you drive 5,000 or fewer
|
|||
|
miles per year, you are eligible for the maximum 10% discount.
|
|||
|
If you drive between 5,001 and 7,500 miles per year, you are
|
|||
|
eligible for a 5% discount. The discount applies to all
|
|||
|
coverages except Comprehensive, Substitute Transportation and
|
|||
|
Towing and Labor, and applies to the rate for each insured car
|
|||
|
as otherwise determined by territory, driver class, vehicle
|
|||
|
model year and symbol, prior to the application of SDIP
|
|||
|
surcharges or credits.
|
|||
|
* Senior Citizen Discount - Drivers 65 years or older
|
|||
|
who are principal operators of their cars receive a 25%
|
|||
|
reduction on all their auto coverages, provided there is no
|
|||
|
inexperienced driver (one with less than six years of driving
|
|||
|
experience) listed on their policies. Cars used for business
|
|||
|
are not eligible. The 25% discount does not apply to SDIP
|
|||
|
Surcharge Points.
|
|||
|
* Public Transportation Discount - Choosing to take
|
|||
|
public transportation instead of using your automobile can save
|
|||
|
you 10% on your property damage liability and collision
|
|||
|
coverages. The maximum discount is $75. To obtain this
|
|||
|
discount, you must show evidence of purchase of 11 months of
|
|||
|
commuter passes or tickets from a qualified transit system.
|
|||
|
* Anti-Theft and Recovery System Discounts-
|
|||
|
Policyholders who install certain kinds of anti-theft devices
|
|||
|
are eligible for a 5%, 15%, or 20% discount on Comprehensive
|
|||
|
coverages. The installation of a signal-activated vehicle
|
|||
|
recovery system, in combination with an approved anti-theft
|
|||
|
device, can qualify you for a savings between 25%-35%. The
|
|||
|
size of the discount varies, depending on the kind of
|
|||
|
anti-theft device, and whether it is combined with a vehicle
|
|||
|
recovery system.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
You should seriously consider buying and using some kind
|
|||
|
of anti-theft device and/or vehicle recovery system. Before
|
|||
|
you choose a particular brand or model, check with your agent,
|
|||
|
broker or company representative about the discount. A quick
|
|||
|
check before you buy can help you avoid an expensive
|
|||
|
misunderstanding later.
|
|||
|
* Multi-Vehicle Discount - Individuals and married
|
|||
|
couples who own more than one car and insure them for Collision
|
|||
|
or Limited Collision coverage with the same company can get a
|
|||
|
5% discount on these coverages. This discount is available
|
|||
|
only to experienced drivers.
|
|||
|
|
|||
|
Inexperienced drivers can realize a 10% savings on three
|
|||
|
of the four compulsory coverages and on optional liability and
|
|||
|
collision coverages, if they complete an approved
|
|||
|
driver-training course. The savings is calculated into the
|
|||
|
rates for the particular driver classifications.
|
|||
|
Finally, you can affect the cost of your policy by how
|
|||
|
you and the other operators of your auto drive. You will
|
|||
|
receive Credit Points on your policy if you and the other
|
|||
|
operators maintain good driving records. More detailed
|
|||
|
information about the Safe Driver Insurance Plan can be found
|
|||
|
in Part 4 of this guide.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
THE 1990 SAFE DRIVER INSURANCE PLAN
|
|||
|
|
|||
|
If you and the other drivers listed on your policy have
|
|||
|
incident-free driving history records, then your insurance
|
|||
|
premium for Bodily Injury to Others (Part l), Personal Injury
|
|||
|
Protection (Part 2), Damage to Someone Else's Property (Part 4)
|
|||
|
and Collision (Part 7) coverages will be reduced by the
|
|||
|
application of Credit Points, helping to lower your total
|
|||
|
automobile insurance bill. If you or any other driver listed
|
|||
|
on your policy caused an accident or violated any surchargeable
|
|||
|
motor vehicle traffic law, your insurance premium for Parts 1,
|
|||
|
2, 4, and 7 will increase due to the application of Surcharge
|
|||
|
Points.
|
|||
|
The 1990 Safe Driver Insurance Plan 211 CMR 125.00 is
|
|||
|
published in accordance with the authority granted to the
|
|||
|
Commissioner of Insurance under Massachusetts General Laws
|
|||
|
Chapter 175 Section 113B.
|
|||
|
|
|||
|
HIGHLIGHTS OF THE 1990 SAFE DRIVER INSURANCE PLAN
|
|||
|
* All operators on a policy will be assigned an SDIP
|
|||
|
Step.
|
|||
|
* Six years of driving history will be used to rate your
|
|||
|
policy.
|
|||
|
* An SDIP Step is determined by adding Surcharge Points
|
|||
|
for surchargeable incidents within the policy Experience
|
|||
|
Period to a starting step value of 15 and subtracting
|
|||
|
Credit Points for each year of incident-free driving
|
|||
|
within the policy Experience Period for which the
|
|||
|
operator was licensed to drive in Massachusetts.
|
|||
|
* Operators will receive one Credit Point for each year
|
|||
|
of incident-free driving for which they were licensed to
|
|||
|
drive in Massachusetts.
|
|||
|
* Surcharge Points for Surchargeable Incidents have
|
|||
|
increased.
|
|||
|
* Aging of incidents has been eliminated.
|
|||
|
|
|||
|
SAFE DRIVER INSURANCE PLAN (SDIP) STEPS
|
|||
|
The 1990 Safe Driver Insurance Plan assigns an SDIP Step
|
|||
|
to each operator listed on a policy. For policy year 1990 the
|
|||
|
SDIP Step range is from 09 to 35. SDIP Step 09 is the Best
|
|||
|
Credit Step for 1990.
|
|||
|
All operators enter the step system at Step 15, the
|
|||
|
neutral step - no increase or decrease in automobile insurance
|
|||
|
premium. Each operator's SDIP Step is computed by adding to
|
|||
|
the starting step value of 15, Surcharge Points for
|
|||
|
surchargeable incidents within the policy Experience Period,
|
|||
|
and then subtracting Credit Points earned by the operator for
|
|||
|
each incident-free year within the policy Experience Period or
|
|||
|
special Credit Points for the Clean Slate Rule.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
This equation will help you determine your operator SDIP
|
|||
|
Step:
|
|||
|
STARTING STEP 15
|
|||
|
+ SURCHARGE POINTS
|
|||
|
- CREDIT POINTS
|
|||
|
----------------------
|
|||
|
= OPERATOR'S SDIP STEP
|
|||
|
|
|||
|
EXPERIENCE PERIOD
|
|||
|
The Experience Period of a 1990 policy is the 6 year
|
|||
|
period immediately preceding the policy effective date. The
|
|||
|
Experience Period is expected to increase each year by 1 year
|
|||
|
up to 15 years. For example, the Experience Period of a policy
|
|||
|
in 1991 is expected to be 7 years.
|
|||
|
|
|||
|
CREDIT POINTS
|
|||
|
One Credit Point is subtracted from the starting step of
|
|||
|
15 for each incident-free year of driving during the policy
|
|||
|
Experience Period. An incident free year of driving is any of
|
|||
|
the 1-year periods immediately preceding the policy effective
|
|||
|
date for which the operator has been licensed to drive in
|
|||
|
Massachusetts and during which the operator has not had a
|
|||
|
surchargeable at-fault accident or motor vehicle traffic
|
|||
|
violation.
|
|||
|
EXAMPLE: If you have been licensed to drive in
|
|||
|
Massachusetts for 10 years, there are no surchargeable
|
|||
|
incidents on your driving history record and your policy
|
|||
|
effective date is 01/01/90, you will be placed at SDIP Step 09,
|
|||
|
the Best Credit, for 1990. To compute this yourself, first
|
|||
|
determine either the date you obtained your Massachusetts
|
|||
|
driver's license or the beginning date of your policy
|
|||
|
Experience Period (preceding 6 years), whichever is later. In
|
|||
|
this example, 01/01/84, the beginning date of the policy
|
|||
|
Experience Period, is later. Next, subtract 6 Credit Points -
|
|||
|
1 point for each incident-free year within the Experience
|
|||
|
Period - from the neutral step 15. The resulting number is
|
|||
|
your operator SDIP Step.
|
|||
|
|
|||
|
STARTING STEP 01/01/84 15
|
|||
|
CREDIT POINTS - 06
|
|||
|
-----
|
|||
|
OPERATOR SDIP STEP = 09
|
|||
|
|
|||
|
Operators with less than 6 years of driving experience
|
|||
|
will receive Credit Points for only those incident-free years
|
|||
|
for which they were licensed to drive in Massachusetts.
|
|||
|
Operators licensed to drive in Massachusetts for less
|
|||
|
than 1 year will be placed at SDIP Step 15, the neutral step.
|
|||
|
|
|||
|
SURCHARGEABLE INCIDENTS AND SURCHARGE POINTS
|
|||
|
At-Fault Accidents - If you are involved in an accident
|
|||
|
and you file a Collision claim, or if another person
|
|||
|
|
|||
|
|
|||
|
files a claim under Damage To Someone Else's Property, your
|
|||
|
insurance company must determine who was more than 50%
|
|||
|
at-fault. It makes no difference whether the at-fault accident
|
|||
|
occurred within the Commonwealth or out-of-state.
|
|||
|
There are two types of at-fault accidents. A Minor
|
|||
|
At-Fault Accident is a claim payment under Damage to Someone
|
|||
|
Else's Property, Collision or Limited Collision coverage of
|
|||
|
more than $200 but not more than $1,500 and a Major At-Fault
|
|||
|
Accident is a claim payment under Damage to Someone Else's
|
|||
|
Property, Collision or Limited Collision coverage of more than
|
|||
|
$1,500.
|
|||
|
If your company finds that you were at-fault and pays a
|
|||
|
claim of more than $200, the at-fault accident will be added to
|
|||
|
your operator's driving history record and your company will
|
|||
|
send you a Surcharge Notice. The Surcharge Date for an
|
|||
|
at-fault accident is the Date of Notice entered by your insurer
|
|||
|
on the Surcharge Notice form. The accident will become part of
|
|||
|
your driving history record unless the company withdraws the
|
|||
|
Surcharge Notice or you successfully appeal the notice to the
|
|||
|
Board of Appeal.
|
|||
|
|
|||
|
Appealing At-Fault Accidents- Accident surcharges must
|
|||
|
be appealed at the time you receive the Surcharge Notice from
|
|||
|
your insurance company. Detailed instructions for filing an
|
|||
|
appeal are on the Surcharge Notice. The Board of Appeal on
|
|||
|
Motor Vehicle Liability Policies and Bonds will hold the
|
|||
|
hearing and will notify you, your company and the Merit Rating
|
|||
|
Board of its decision. If the Board determines that you were
|
|||
|
not more than 50% at-fault in the accident, the Merit Rating
|
|||
|
Board will remove the incident from your driving history record.
|
|||
|
If your premium is increased due to Surcharge Points for
|
|||
|
an at-fault accident while your appeal is pending, you must pay
|
|||
|
the additional premium or your policy will be cancelled. Your
|
|||
|
policy will be re-rated by your insurance company if you win
|
|||
|
your appeal.
|
|||
|
If you have any questions concerning an appeal of a
|
|||
|
Surcharge Notice, contact the Board of Appeal at (617)
|
|||
|
727-7189, extension #223.
|
|||
|
|
|||
|
Motor Vehicle Traffic Law Violations - If you are
|
|||
|
convicted of, or make payments for, violating certain motor
|
|||
|
vehicle traffic laws, or are assigned to an alcohol education
|
|||
|
program, the court will notify the Merit Rating Board. The
|
|||
|
motor vehicle traffic law violation will be added to your
|
|||
|
driving history record. The court judgment date is the
|
|||
|
Surcharge Date for a motor vehicle traffic law violation.
|
|||
|
Surcharge Points are not assigned to a non-criminal
|
|||
|
minor motor vehicle traffic law violation if it is the first
|
|||
|
motor vehicle traffic law violation in the operator's policy
|
|||
|
|
|||
|
|
|||
|
Experience Period. No Surcharge Points are assessed for the
|
|||
|
incident but no Credit Points are calculated for the year in
|
|||
|
which the surcharge date is recorded, since the operator does
|
|||
|
not have an incident-free year.
|
|||
|
A list of all surchargeable Motor Vehicle Traffic Law
|
|||
|
Violations can be obtained from the Merit Rating Board.
|
|||
|
|
|||
|
Out of-State Violations - Convictions of Motor Vehicle
|
|||
|
Traffic Laws outside the Commonwealth that are reported to the
|
|||
|
Registry of Motor Vehicles will be added to the operator's
|
|||
|
driving history record and will be subject to Surcharge Points.
|
|||
|
|
|||
|
Surcharge Points - The number of Surcharge Points
|
|||
|
assigned to each surchargeable incident is determined by the
|
|||
|
type of incident:
|
|||
|
|
|||
|
Minor Traffic Law Violation 2 Surcharge Points
|
|||
|
Minor At-Fault Accident 3 Surcharge Points
|
|||
|
Major At-Fault Accident 4 Surcharge Points
|
|||
|
Major Traffic Law Violation 5 Surcharge Points
|
|||
|
|
|||
|
EXAMPLE: If you have been licensed to drive in
|
|||
|
Massachusetts for 8 years; you have 2 Minor Traffic Law
|
|||
|
Violations and 1 Minor At-Fault Accident on your driving
|
|||
|
history record and your policy effective date is 01/01/90, then
|
|||
|
your SDIP Step will be 17.
|
|||
|
|
|||
|
STARTING STEP 01/01/84 15
|
|||
|
Incident Date Surcharge Date
|
|||
|
SPEEDING 12/01/84 12/22/84 00
|
|||
|
MINOR AT-FAULT ACCIDENT 07/17/87 08/18/87 03
|
|||
|
SPEEDING 04/24/88 05/02/88 02
|
|||
|
CREDIT POINTS (incident-free years 1985, 1986 and 1989) - 03
|
|||
|
----
|
|||
|
OPERATOR SDIP STEP = 17
|
|||
|
|
|||
|
COMPREHENSIVE CLAIMS
|
|||
|
Your insurance company is required to notify the Merit
|
|||
|
Rating Board when a Comprehensive claim has been paid.
|
|||
|
Comprehensive claims are added to the policyholder's driving
|
|||
|
history record. In future years the Comprehensive coverage on
|
|||
|
your private passenger automobile insurance policy may be
|
|||
|
subject to Surcharge Points if you submit four or more
|
|||
|
Comprehensive claims on or after January 1, 1984, totaling
|
|||
|
$2,000 or more.
|
|||
|
Surcharge Points for Comprehensive claims will not be
|
|||
|
applied for policies effective in 1990.
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
ASSIGNMENT OF OPERATOR SDIP STEPS TO VEHICLES LISTED ON A POLICY
|
|||
|
After each operator listed on your policy is assigned an
|
|||
|
SDIP Step, the operators are assigned to the vehicles listed on
|
|||
|
the policy. The listed operator with the highest Step is
|
|||
|
assigned to the vehicle with the highest combined premium for
|
|||
|
Parts 1, 2, 4, and 7. For each subsequent vehicle, the listed
|
|||
|
operator with the next highest Step is assigned to the vehicle
|
|||
|
with the next highest combined premium until all the vehicles
|
|||
|
have been exhausted. An operator's SDIP Step greater than SDIP
|
|||
|
Step 15 can not be billed on more than one policy in effect at
|
|||
|
the same time.
|
|||
|
When there are more vehicles than operators listed on a
|
|||
|
policy, the excess vehicles are assigned the step of the
|
|||
|
operator with the lowest Step unless such operator's Step is
|
|||
|
above SDIP Step 15. In such case, the excess vehicles are
|
|||
|
assigned SDIP Step 15.
|
|||
|
|
|||
|
EXAMPLE: A policy lists four (4) vehicles and three (3)
|
|||
|
operators: Operator A's SDIP Step is 20, Operator B's SDIP
|
|||
|
Step is 15 and Operator C's SDIP Step is 09.
|
|||
|
|
|||
|
Vehicles Operators
|
|||
|
1 A. SDIP Step 20
|
|||
|
2 B. SDIP Step 15
|
|||
|
3 C. SDIP Step 09
|
|||
|
4 C. SDIP Step 09
|
|||
|
|
|||
|
APPLICATION OF PREMIUM ADJUSTMENTS TO COVERAGES
|
|||
|
An operator's SDIP Step determines how much of an
|
|||
|
adjustment will be made to the policy premium. SDIP Steps 09
|
|||
|
(Best Credit) to 14 are Credit Steps. For each step below 15
|
|||
|
the operator's premium will be adjusted downwards. Step 15 is
|
|||
|
the neutral step, which means the operator is neither in credit
|
|||
|
nor surcharge status, and will not receive a reduction or an
|
|||
|
increase in premium. Step 16 through 35 are Surcharge Steps.
|
|||
|
For each step above 15 the operator's premium will be adjusted
|
|||
|
upwards. If you wish to calculate the actual amount of your
|
|||
|
credit or surcharge, refer to "Calculation of SDIP Credits and
|
|||
|
Surcharges" at the end of this section.
|
|||
|
|
|||
|
Liability Premium- Each step represents a 7% change in
|
|||
|
the following liability coverages:
|
|||
|
Part l: Bodily Injury to Others
|
|||
|
Part 2: Personal Injury Protection
|
|||
|
Part 4: Damage to Someone Else's Property (PDL)
|
|||
|
|
|||
|
Collision Premium- Each step represents a 5% change in
|
|||
|
Collision Coverage:
|
|||
|
Part 7: Collision
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
Example: If you have been licensed to drive in
|
|||
|
Massachusetts for six years; you have no incidents on your
|
|||
|
6-year driving history record; your SDIP Step is 09; and you
|
|||
|
have Liability and Collision coverages on your policy, then you
|
|||
|
will receive a 42% (7% X 6 steps) reduction on your Liability
|
|||
|
coverages and a 30% (5% X 6 steps) reduction on your Collision
|
|||
|
coverage.
|
|||
|
|
|||
|
CLEAN SLATE RULES
|
|||
|
The Safe Driver Insurance Plan provides incentives to
|
|||
|
operator's who have incidents on their record in the early
|
|||
|
years of the Experience Period, but in subsequent years have
|
|||
|
maintained clean driving history records.
|
|||
|
|
|||
|
Transitional Clean Slate Rule- In order to ensure a fair
|
|||
|
and equitable transition from the 1989 Safe Driver Insurance
|
|||
|
Plan, the 1990 Safe Driver Insurance Plan includes a Clean
|
|||
|
Slate Rule. For 1990, a 3-Year Clean Slate Rule will place an
|
|||
|
operator in a credit step if that operator would have been in
|
|||
|
credit status under the 1989 SDIP.
|
|||
|
If the operator's SDIP Step is greater than 15, the
|
|||
|
operator's SDIP Step will be set at 14 if all of the following
|
|||
|
conditions for the Clean Slate Rule are met:
|
|||
|
|
|||
|
Three (3) Year Clean Slate Rule applies to an operator on a
|
|||
|
1990 policy if:
|
|||
|
a. the operator has a three year period of incident free
|
|||
|
driving within the policy Experience Period;
|
|||
|
b. the three year period occurs after 1/1/87 and before
|
|||
|
12/31/90;
|
|||
|
c. the operator had a valid Massachusetts driver license
|
|||
|
for the entire three year incident-free period; and
|
|||
|
d. the operator's SDIP step at the end of the incident-free
|
|||
|
period would be greater than 14. Then the operator's
|
|||
|
SDIP step is set to 14.
|
|||
|
Points for surchargeable incidents within the policy Experience
|
|||
|
Period which have surcharge dates that are recorded after this
|
|||
|
3-year incident free period are added to operator SDIP Step 14.
|
|||
|
|
|||
|
Clean Slate Incentive- As an incentive to promote safe
|
|||
|
driving, a Five (5) Year Clean Slate provision has been added
|
|||
|
for policies effective after 1991. If an operator maintains
|
|||
|
five consecutive years of incident-free driving within the
|
|||
|
policy Experience Period, and the operator's SDIP Step is
|
|||
|
greater than 15, then the operator's SDIP Step will be set at
|
|||
|
15. The operator must have a valid Massachusetts driver's
|
|||
|
license for the entire five year incident free period.
|
|||
|
SAFE DRIVER INSURANCE PLAN (SDIP) STATEMENT
|
|||
|
Your insurance company is required to send you a Safe
|
|||
|
Driver Insurance Plan (SDIP) Statement if you or any operator
|
|||
|
listed on your policy are not assigned Operator Step 09, the
|
|||
|
Best Credit for 1990.
|
|||
|
|
|||
|
REFUSAL TO PAY A PREMIUM INCREASE
|
|||
|
If you refuse to pay your premium increase due to
|
|||
|
Surcharge Points, your insurance company will cancel your
|
|||
|
policy after sending you the Notice of Cancellation required by
|
|||
|
law.
|
|||
|
|
|||
|
RECORD ERROR OR BILLING PROBLEMS
|
|||
|
If you believe a billing is erroneous, you should first
|
|||
|
contact your insurance agent, broker or company. Make sure you
|
|||
|
have all necessary information on hand, including your Coverage
|
|||
|
Selections Page, Safe Driver Insurance Plan (SDIP) Statement
|
|||
|
and copies of your billings.
|
|||
|
If you question the accuracy of your driving history
|
|||
|
record as shown on your Safe Driver Insurance Plan (SDIP)
|
|||
|
Statement call or write the Merit Rating Board's Insurance
|
|||
|
Company Services Section, 100 Nashua Street, 6th Floor, Boston,
|
|||
|
MA 02114, (617) 727-7017. You must pay a billed premium while
|
|||
|
the matter is under investigation or your insurance company
|
|||
|
will cancel your policy. If an error is discovered, it will be
|
|||
|
corrected and all parties will be notified in writing. If you
|
|||
|
were erroneously billed your insurance company will re-rate
|
|||
|
your policy.
|
|||
|
|
|||
|
OBTAINING A COPY OF YOUR OPERATOR DRIVING HISTORY RECORD
|
|||
|
You may obtain a copy of your operator driving history
|
|||
|
record from the Merit Rating Board. This detailed record will
|
|||
|
show six years of your active surchargeable incidents on file
|
|||
|
at the Merit Rating Board. The cost is $3.00. DO NOT MAIL
|
|||
|
CASH. Make check or money order payable to the Commonwealth of
|
|||
|
Massachusetts.
|
|||
|
No fee is required to inspect your computer record at
|
|||
|
the Merit Rating Board's office. However, a prior appointment
|
|||
|
must be made with the Board's Insurance Company Service Section.
|
|||
|
CALCULATION OF SDIP CREDITS AND SURCHARGES
|
|||
|
Your total policy credit or surcharge is determined by
|
|||
|
multiplying the coverage premium shown on your Coverage
|
|||
|
Selections Page by the factor which corresponds to your SDIP
|
|||
|
Step (see below), and then adding the products for all four
|
|||
|
coverages. Subtract this number from your total premium if you
|
|||
|
are determining a credit. Add this number to your total premium
|
|||
|
if you are determining a surcharge.
|
|||
|
================================================================
|
|||
|
SURCHARGE FACTORS
|
|||
|
Step Part 1 Part 2 Part 4 Part 7
|
|||
|
Number BI to Others PIP Property Collision
|
|||
|
Damage
|
|||
|
------ --------- ------- -------- -------
|
|||
|
|
|||
|
35 1.40 1.40 1.40 1.00
|
|||
|
34 1.33 1.33 1.33 0.95
|
|||
|
33 1.26 1.26 1.26 0.90
|
|||
|
32 1.19 1.19 1.19 0.85
|
|||
|
31 1.12 1.12 1.12 0.85
|
|||
|
30 1.05 1.05 1.05 0.75
|
|||
|
29 0.98 0.98 0.98 0.70
|
|||
|
28 0.91 0.91 0.91 0.65
|
|||
|
27 0.84 0.84 0.84 0.60
|
|||
|
26 0.77 0.77 0.77 0.55
|
|||
|
25 0.70 0.70 0.70 0.50
|
|||
|
24 0.63 0.63 0.63 0.45
|
|||
|
23 0.56 0.56 0.56 0.40
|
|||
|
22 0.49 0.49 0.49 0.35
|
|||
|
21 0.42 0.42 0.42 0.30
|
|||
|
20 0.35 0.35 0.35 0.25
|
|||
|
19 0.28 0.28 0.28 0.20
|
|||
|
18 0.21 0.21 0.21 0.15
|
|||
|
17 0.14 0.14 0.14 0.10
|
|||
|
16 0.07 0.07 0.07 0.05
|
|||
|
=================================================================
|
|||
|
NO CREDIT/NO SURCHARGE FACTORS
|
|||
|
Step
|
|||
|
Number Part 1 Part 2 Part 4 Part 7
|
|||
|
------ ------- ------ ------ ------
|
|||
|
15 0.000 0.000 0.000 0.000
|
|||
|
=================================================================
|
|||
|
SURCHARGE FACTORS
|
|||
|
Step
|
|||
|
Number Part 1 Part 2 Part 4 Part 7
|
|||
|
------ --------- ------- ------ ------
|
|||
|
14 0.07 0.07 0.07 0.05
|
|||
|
13 0.14 0.14 0.14 0.10
|
|||
|
12 0.21 0.21 0.21 0.15
|
|||
|
11 0.28 0.28 0.28 0.20
|
|||
|
BEST 10 0.35 0.35 0.35 0.25
|
|||
|
CREDIT= 09 0.42 0.42 0.42 0.30
|
|||
|
================================================================
|
|||
|
|
|||
|
|
|||
|
The Division would like to thank the Merit Rating Board for its
|
|||
|
preparation of this section of the guide.
|
|||
|
|
|||
|
|
|||
|
FILING A COMPLAINT
|
|||
|
|
|||
|
If you believe that your insurance company has acted
|
|||
|
improperly in issuing, renewing or cancelling your automobile
|
|||
|
insurance policy, or has refused to pay all or part of a fair
|
|||
|
claim, or your agent, broker or company has misrepresented you,
|
|||
|
you have the right to file a complaint and seek a resolution.
|
|||
|
The problem may be due to a simple error, and may be
|
|||
|
corrected with an inquiry over the telephone. Contact your
|
|||
|
agent, broker or company representative. Make sure you have all
|
|||
|
necessary information on hand, such as the policy or account
|
|||
|
number, a clear and concise description of the problem and any
|
|||
|
other important information.
|
|||
|
If you do not receive a prompt, satisfactory response,
|
|||
|
write a letter to the company briefly explaining your problem and
|
|||
|
what you expect to be done to correct it. It may be a good idea
|
|||
|
to send the letter by registered mail to guarantee that the
|
|||
|
company receives it.
|
|||
|
If you still feel you have been treated unfairly, send a
|
|||
|
complaint letter to the Division of Insurance, and we will assist
|
|||
|
you in resolving your problem. Be sure to include your name,
|
|||
|
address, and phone number; the name of the agent, broker or
|
|||
|
insurance company; the policy number; and a brief description of
|
|||
|
the problem. Make sure you keep a copy of the letter and any
|
|||
|
other documents you include with the letter, for your own
|
|||
|
records. Keep all letters, receipts, bills and policies together
|
|||
|
for easy reference. The Division of Insurance has Consumer
|
|||
|
Service offices located at:
|
|||
|
|
|||
|
280 Friend Street 436 Dwight Street, Rm. 438
|
|||
|
Boston, MA 02114 Springfield, MA 01103
|
|||
|
(617) 727-3333 (413) 784-1190
|
|||
|
|
|||
|
We will make every effort to ensure that your valid
|
|||
|
complaint is resolved in a satisfactory manner, by investigating
|
|||
|
the problem, clarifying misunderstandings and making sure you get
|
|||
|
clear responses to your questions. We cannot however, guarantee
|
|||
|
a favorable action on your complaint if it is not supported by
|
|||
|
facts or the law, nor can we provide legal services that may be
|
|||
|
required to settle a more complicated complaint.
|
|||
|
|