Posted on Wed, Dec 30, 2009
Massachusetts Auto Insurance:
What is an At-Fault Accident?
mass.gov
If you are found to be more than 50 percent at fault for causing an accident, and if the accident involves a claim payment exceeding $500, you will receive a Surcharge Notice.
The incident will go on your driving record. As a result, your insurance company may impose a surcharge on your premium, depending on the terms of the company's merit rating plan.
What Is a Surchargeable At-Fault Accident?
An accident is defined as a surchargeable at-fault accident if:
- the involved operator is more than 50 percent at fault as determined by the Standards of Fault
- the vehicle is a private passenger automobile
- the accident involves a claim payment of more than $500, in excess of any deductible
- the claim payment is for Damage To Someone Else's Property, Collision, or Limited Collision coverages for a vehicle subject to the Safe Driver Insurance Plan. For at-fault accidents occurring on or after January 1, 2006, Bodily Injury To Others liability claims may be subject to surcharge.
Your insurance company will notify you and the Merit Rating Board (MRB) if you are determined to be more than 50 percent at fault for causing an accident. The MRB will then add the at-fault accident to your driving record. An increase to your auto insurance premium as a result of the accident is dependent on the terms of your insurer's merit rating plan. A merit rating plan is used by an insurance company to adjust an auto insurance premium based on the operator's driving record. Contact your insurance company or agent to find out about their merit rating plan.
Accidents outside of Massachusetts may be subject to surcharge.
- If your Massachusetts insured private passenger automobile is involved in an accident outside of Massachusetts, it will be subject to surcharge if the accident involves a claim payment of more than $500 under Damage To Someone Else's Property, Collision, Limited Collision, or Bodily Injury To Others, and if you are determined to be more than 50 percent at fault.
- If you were involved in an at-fault accident when you resided outside of Massachusetts, it may be subject to surcharge. Massachusetts auto insurers may report an accident from your out-of-state driving record to theMRB if it can be classified as an at-fault accident as defined in the Massachusetts Safe Driver Insurance Plan.
Standards of Fault:
Massachusetts auto insurers and the Division of Insurance Board of Appeal use these Standards of Fault to determine if an operator is more than 50 percent at fault.
There are 19 standards:
Collision with a Lawfully or Unlawfully Parked Vehicle
Rear End Collision
Out of Lane Collision
Failure to Signal
Failure to Proceed with Due Caution from a Traffic Control Signal or Sign
Collision on Wrong Side of Road
Operating in the Wrong Direction
Collision at an Uncontrolled intersection
Collision While in the Process of Backing Up
Collision While Making a Left Turn or U-Turn Across the Travel Path of a Vehicle Traveling in the Same or Opposite Direction
Leaving or Exiting from a Parked Position, Parking Lot, Alley or Driveway
Opened or Opening Vehicle Door(s)
Single Vehicle Collision
Failure to Obey the Rules and Regulations of Driving
Unattended Vehicle Collision
Collision While Merging onto a Highway, or into a Rotary
Non-Contact Operator Causing Collision
Failure to Yield the Right of Way to Emergency Vehicles when Required by Law
Collision at a "T" Intersection
Posted on Wed, Sep 16, 2009
What is a ZipCar? According to it's website, Zipcar is the world's largest car sharing and car club service. It is an alternative to traditional car rental and car ownership. Zipcars are available in many major cities as well as on campuses at universities across North America.
ZipCars are popping up at campuses all over the country and they make a lot of sense for many college students, but if you are under 21 years of age, be sure to address the insurance gap. Whereas ZipCars' insurance coverage for drivers 21 years of age and older provides a $300,000 combined limit for property damage and bodily injury, it provides only the state mandated limits for members 18-20 years of age. In Massachusetts, this is $5,000 of property damage and bodily injury coverage of $20,000 per person and $40,000 per accident. These limits are too low and present more risk than most people can afford to take.
Many people think that their own coverage will back them up, however the Massachusetts Auto Insurance Policy excludes coverage for bodily injury and property damage for regular use or a non-owned car. Because regular use is not clearly defined, efforts to close this gap should be taken. One way is to add a "Use of other Autos - Vehicles Furnished or Available for Regular use" endorsement to the parents' policy. Most carriers will agree to add this endorsement and the cost is usually in the range of $100 - $150 per year. The downside is that the college student must remain as an insured driver on the parents' policy and you do not have the option of removing the student as a driver and saving money while they are away at school.
Another option, which is difficult for a college student to obtain in Massachusetts, is a non-owner auto insurance policy. This would be the only answer for a college student who is not listed on their parents' policy and it could be a good solution for those who are listed because the cost can be less expensive than insuring the student on the family's auto policy for a full 12 months when they are only home 2-3 months per year. Again this can be difficult to obtain in Massachusetts, but it is more readily available in some other states and it can cost as little as $200-$300 per year (Tennessee).
If you have any questions regarding this article or any other insurance issue, don't hesitate to contact our customer service specialists at 1-800-922-8381. At Gaudette Insurance Agency, we are licensed professionals who care about your insurance needs.