It’s a situation no one wants to imagine. You’ve been in a serious car accident that wasn’t your fault. You’re dealing with injuries, doctor’s appointments, and the stress of recovery. Then, you learn that the person who caused the crash only has the minimum amount of car insurance required by law. Suddenly, a frightening question appears: Who is going to pay for all of this? The answer may lie within your own insurance policy, specifically your underinsured motorist coverage in MA.
When an at-fault driver’s insurance is not enough to cover the full extent of your injuries and losses, this protection is designed to bridge the gap between your expenses and the other driver’s limited policy, and a car accident lawyer at Altman-Nussbaum-Shunnarah Trial Attorneys can help you enforce it.
Key Takeaways about Underinsured Motorist Coverage in MA
- Massachusetts law mandates that all drivers carry a minimum amount of car insurance, but these required limits are often too low to cover the costs of a serious injury.
- An at-fault driver is considered “underinsured” when their bodily injury liability coverage is not sufficient to pay for all the damages they caused.
- Underinsured Motorist (UIM) coverage, which is part of an individual’s own auto policy, can be used to cover medical bills, lost wages, and other damages that exceed the at-fault driver’s policy limits.
- The amount of UIM coverage a person can purchase is linked to the limits selected for their Optional Bodily Injury to Others (Part 5) coverage.
- Massachusetts law may permit “stacking” of UIM coverage from multiple vehicles on a single policy if that specific option was purchased, potentially increasing the total funds available.
The Financial Reality of Massachusetts Minimum Car Insurance
Every driver in Massachusetts is legally required to carry auto insurance. The goal of this system is to ensure that funds are available to help people who are injured in a crash, especially in a car accident case. However, the minimum required amounts, set by state law, can be surprisingly low and may fall far short of what is needed after a significant accident.
The minimum required coverage amounts in Massachusetts increased effective July 1, 2025, but it still remains surprisingly low. The compulsory (or mandatory) amount for Bodily Injury to Others is just $25,000 per person and $50,000 per accident. This means that if an at-fault driver with a minimum policy injures you, their insurance company will pay a maximum of $25,000 for all your damages. If they injure three people, their insurance will only pay a total of $50,000 to be split among everyone.
Consider the cost of modern medical care. A single surgical procedure for a broken bone can easily exceed $25,000. A hospital stay of even a few days can cost tens of thousands of dollars. When you factor in physical therapy, lost time from work, and pain and suffering, it becomes clear that a $25,000 policy limit is often just a drop in the bucket. This is precisely why understanding your own policy is so important.
Compulsory vs. Optional Bodily Injury: What’s the Difference?
The standard Massachusetts auto policy is broken down into 12 parts. When it comes to injuries you cause to others, the two most important are Part 1 (Compulsory) and Part 5 (Optional). The choices you make here directly impact the amount of protection you have through your underinsured motorist coverage in MA.
Understanding Compulsory Bodily Injury to Others (Part 1)
This is the coverage everyone must buy. It is the basic, non-negotiable part of your policy that covers injuries you cause to another person while driving within Massachusetts.
As mentioned, its limits are set at the state minimum of $25,000 per person and $50,000 per accident. While it satisfies the legal requirement to drive, it offers very little protection for the people you might injure and, as you’ll see, offers no pathway to higher underinsured motorist limits for yourself.
The Power of Optional Bodily Injury to Others (Part 5)
This is where you can build a stronger financial safety net for yourself and others. Optional Bodily Injury to Others coverage provides two key benefits:
- It protects you from accidents outside of Massachusetts. The compulsory coverage only applies within state lines. Part 5 extends that protection anywhere in the United States, its territories, or Canada.
- It allows you to choose higher liability limits. Instead of being stuck with the $25,000/$50,000 minimum, you can choose to purchase much higher limits, such as $100,000/$300,000 or $250,000/$500,000.
Most importantly, the limits you choose for Part 5 directly determine the maximum limits you can purchase for your own Underinsured Motorist coverage (Part 12). After a car accident, if you only carry the compulsory minimums, you cannot protect yourself from being hit by a driver with minimum limits.
Your Safety Net: What Is Underinsured Motorist Coverage in MA?
Underinsured Motorist (UIM) coverage is your protection against other drivers’ poor insurance choices. It is a part of your own auto policy that you can use when the person who caused your injuries does not have enough insurance to cover the full cost of your damages. It is not automatically included in the compulsory package; you must choose to add it, but it provides a level of security that can make all the difference.
Think of it as a backup plan you purchase for yourself. You hope you never need it, but if you do, it’s there to protect you and your family. The process generally works like this:
- First, a claim is made against the at-fault driver’s insurance policy.
- Their insurance company pays out the full limit of their bodily injury coverage (for example, the $25,000 minimum).
- If your damages exceed that amount, you can then file a claim for the difference with your own insurance company under your UIM coverage, up to the limits of your policy.
Let’s look at a simple example to see how this works in practice:
- Your Total Damages: You have $125,000 in medical bills, lost wages, and other costs.
- At-Fault Driver’s Policy Limit: The driver who hit you has the minimum policy, which pays out $25,000.
- Remaining Damages: You still have $100,000 in unpaid damages.
- Your UIM Coverage: If you have $250,000 in UIM coverage, your own policy can pay the remaining $100,000.
Without this UIM coverage, you would be left trying to find a way to cover that $100,000 shortfall on your own. This demonstrates how vital this optional coverage is for your financial well-being after a crash.
The Concept of “Stacking Insurance Policies in Boston” and Beyond
For households with more than one vehicle, there is another potential layer of protection to consider. “Stacking” is a term used to describe combining the UIM coverage from multiple cars to increase the total amount of money available for a single claim. This can be an incredibly valuable tool, but it’s important to understand how it works in Massachusetts.
By default, Massachusetts is an “anti-stacking” state, which means that insurance companies are not required to let you combine coverage. However, you can purchase the option to stack your underinsured motorist coverage in MA when you buy your policy. If you have paid for this option, you can typically combine the UIM limits for each car insured on your policy.
For example, imagine you are driving home from a Red Sox game at Fenway Park and are seriously injured by an underinsured driver.
- You have two cars on your policy.
- Each car has $100,000 in UIM coverage.
- You have purchased the option to stack your policies.
In this scenario, you could combine the coverage from both cars, giving you a total of $200,000 in available UIM benefits. This can be a game-changer when facing significant medical bills and a long recovery period.
Steps to Take When You’re Hit by a Driver with Minimum Limits
After an accident, once you have received emergency medical care and are back home, the practical steps of dealing with the financial side of things begin. One of the most important decisions you can make is to hire a car accident lawyer who understands how to navigate insurance challenges. Learning that the at-fault driver’s insurance is insufficient can be discouraging, but there is a clear path forward.
- Continue Your Medical Treatment. Your health is the absolute priority. Follow all your doctor’s recommendations, attend all follow-up appointments, and go to physical therapy if prescribed. Keeping a detailed record of your medical journey is crucial for documenting the extent of your injuries.
- Notify Your Own Insurance Company. Even though another driver was at fault, you must inform your own insurance provider about the accident in a timely manner. This is a requirement of your policy and the official first step to opening a potential claim for underinsured motorist coverage in MA.
- Obtain the Other Driver’s Policy Information. The process of confirming the other driver’s policy limits can begin. While you can request this information, it is often a step where an experienced attorney can help get clear and confirmed details from the other insurance carrier.
- Review Your Own Policy. Find the “declarations page” of your auto insurance policy. This one- or two-page document is a summary of your coverage. It will clearly list each part of your policy and the dollar limits you selected, including your Underinsured Motorist coverage.
This process can feel complicated, especially when you are focused on healing. Seeking guidance from a legal professional can help you understand your rights and the steps needed to access the coverage you paid for.
Why You Shouldn’t Hesitate to Use Your Own Insurance
A common worry for many people is that making a claim on their own insurance policy will cause their premiums to increase, even when the accident wasn’t their fault. This is a valid concern, but in Massachusetts, the law provides important protections for drivers in this situation.
Under Massachusetts General Laws Chapter 175, Section 113B, an insurance company cannot impose a surcharge (an increase in your premium) for an accident unless you were more than 50% at fault. When you file a UIM claim, it is because another driver was already determined to be at fault for the collision.
You pay your insurance premiums for this very reason: to have protection when something unexpected happens. Your UIM coverage is a benefit you purchased to protect yourself from the exact situation you are in. Using it is not a sign of fault; it is a responsible step toward securing your financial recovery. It is a tool to hold the responsible party accountable by ensuring your damages are fully addressed, using the safety net you wisely put in place.
Massachusetts Underinsured Motorist Coverage FAQs
Here are answers to some common questions people have about using their underinsured motorist coverage.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured Motorist (UM) coverage applies when the at-fault driver has no car insurance at all or is a hit-and-run driver who cannot be identified. Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are too low to cover all of your damages. Both are essential forms of protection.
Do I have to sue the at-fault driver to use my UIM coverage?
Generally, no. A UIM claim is a contractual claim you make with your own insurance company. The process typically involves first settling with the at-fault driver’s insurance for their full policy limit. Once that is complete, you can proceed with the UIM claim against your own provider for the remaining damages.
How much underinsured motorist coverage should I carry?
While this is a personal decision, a good approach is to purchase as much UIM coverage as you can reasonably afford. Consider your own financial situation, health insurance, and potential for lost income. The goal is to have enough coverage to protect your assets and your family’s financial future if you are seriously injured. It’s often recommended to match your UIM limits to your Optional Bodily Injury (Part 5) limits.
What if my own insurance company denies my UIM claim?
Insurance companies sometimes dispute the value of a claim or try to deny it. If this happens, you have the right to challenge their decision. An attorney with experience in insurance disputes can represent you, present the evidence of your damages, and fight to get you the full benefits you are owed under your policy.
Can I use UIM coverage to pay for lost wages?
Yes. UIM benefits are meant to cover all types of compensatory damages that you would have been entitled to recover from the at-fault driver. This includes more than just medical bills. It can cover lost income from being unable to work, future lost earning capacity, as well as compensation for pain, suffering, and emotional distress.
Let Us Fight for the Compensation You Deserve
Discovering that the person who caused your injuries doesn’t have enough insurance to cover your expenses can be incredibly stressful. At Altman Nussbaum Shunnarah Trial Attorneys, we understand. We believe that your recovery shouldn’t be limited by someone else’s decision to carry minimum insurance. You paid for your policy, and you have a right to its benefits.
Our mission is to make sure you don’t suffer economically after a serious injury. We are fierce advocates for our clients, committed to holding insurance companies accountable and fighting for every dollar you rightfully deserve. We don’t sleep until you win. If you have questions about your accident or your underinsured motorist coverage in MA, contact us today for a free and confidential consultation. Let our army of lawyers have your back and fight relentlessly for the justice you and your family need.
