Important Coverage Areas on an Insurance Policy

You have many options when securing auto insurance, but the important coverage areas on an insurance policy may differ. Many people focus on just meeting state minimum coverage requirements, but this is usually not as much as you would actually need should you have an accident — damage and injury costs can be quite high. Including collision and comprehensive auto insurance in your policy can protect you , covering damages to your vehicle in a range of ways, from accidents with other vehicles to theft or natural disasters.

It is best to research all the options and limits available. The important coverage areas on an insurance policy that you need to understand include:

Types of Insurance and Important Terms

Before learning more about the important coverage areas on an insurance policy, it helps to understand some terms relating to this topic.


Liability refers to coverage that provides payments for damage and injuries you cause in an accident. It will not pay for any medical needs for you or your passengers. It will also not cover damage to your vehicle. In cases where an accident leads to legal proceedings, consulting a premises liability lawyer can be crucial to navigating the complexities of liability and ensuring your rights are protected..

Insurers offer additional types of insurance that will allow you to protect yourself. These options include medical payments for you and your passengers and damage coverage for your vehicle. You will pay extra for this and may have an additional deductible for it. In the unfortunate event of an accident, having the right coverage can make a significant difference. If you get hurt in a construction accident, talking to a construction accident lawyer in Springfield can really help. They can guide you and support you when you’re trying to get compensated for your injuries or any damage. This means they’ll help make sure you get the money you deserve.


A deductible is the amount of money you must pay before the insurance pays anything. A standard deductible amount is $500 or $1,000, but it can differ depending on the insurance provider.

Note that a deductible is not the same as your payment for the insurance. What you pay monthly or regularly to keep your insurance active is the “premium.” It is the cost of having coverage.

A deductible will be paid back to you if the accident is not your fault, and your insurance company recovers funds from the other at-fault party’s insurance company.


Under the law, a party may be wholly at fault or partially at fault. In an accident, fault will be ascribed to the negligent driver. However,   Massachusetts is a no-fault state — which means that no matter who is negligent or the cause of the accident, PIP (Personal Injury Protection) will cover you and any passengers. Also, in Massachusetts, some of your medical bills and lost wages can be recovered regardless of who is at fault.

It is important to note, though, that fault is a key consideration when identifying where to recover from – your own insurance, or from the other driver. Additionally, fault is important to consider when you have reached the limit of your no-fault insurance policy, or the extent of your damages are not adequately covered by your policy. Here, you will be able to bring a claim against the other driver if your medical bills exceed two thousand dollars ($2,000.00).

Replacement of Services

Replacement of services is a type of damage awarded in some cases where an accident leaves a person unable to do his or her normal duties or tasks. For example, a single mother who suffers an injury that leaves her unable to care for her children would have a claim for the replacement of services because she would have to hire someone else to take care of her kids while she recovers.


A claim is what you submit to an insurance company asking for payment. Generally, you would submit a claim for your medical costs and vehicle damages after a car accident. Claims can also include additional items, such as requests to pay for lost wages.

A claim is not the same as filing a lawsuit. You can only file a lawsuit with a court, whereas a claim is filed with the insurance company. In a lawsuit, you would have to provide evidence and prove your case before a judge. A claim is something only the insurance company handles.

Total Loss

Total loss is a term that may apply to your vehicle. If the damages exceed the value of your car or repairs are unreasonable, then the insurer will write it off as a total loss. Instead of paying to repair it, the insurance company will pay you (or your lender, if you have a loan) for the whole vehicle.

Liability Coverage Required by Law

Massachusetts requires you to have certain coverage on your auto insurance policy. The law dictates the amount of each item. According to Massachusetts law, you must carry the following:

  • $20,000 bodily injury liability per person;
  • $40,000 bodily injury liability per accident;
  • $5,000 property damage liability per accident;
  • $20,000 uninsured motorist bodily injury per person;
  • $40,000 uninsured motorist bodily injury per accident; and
  • $8,000 personal injury protection (PIP).

Bodily Injury

Bodily injury coverage pays for the medical bills of other parties involved in the accident. It also covers death. This option kicks in when you are at fault and will pay for costs covered under your policy.

Property Damage

Property damage covers damage you do to the belongings of others. It includes not only repairs and replacement costs for other vehicles but also property such as fences, road signs, and buildings.

Optional Coverages

Your lender may require certain optional coverages on your insurance as a condition of your auto loan. If you own your vehicle, you may still wish to consider them as they can protect you financially if you are in a car accident. These options will pay for injuries to you and the people riding with you along with the costs to repair or replace your damaged vehicle. In case of an accident, consulting a car accident lawyer in Chicopee can provide you with the legal guidance needed to navigate any potential claims or disputes that may arise, ensuring your rights are protected and you are compensated fairly .

Collision and Comprehensive

Collision coverage pays for damage to your vehicle due to an accident. It usually pays for any repairs or replacement regardless of who is at fault. If there is a deductible, then the payout for repair or replacement will be less than the deductible amount, unless the at-fault party has taken liability for the accident. If the at-fault party does not have active coverage or is unknown, you may be responsible for the deductible until an active policy can be identified to take responsibility.

Comprehensive insurance pays for damages caused by instances other than a crash. Other causes may encompass animals, fire, weather, and vandalism. It may also include a specific clause for windshield issues.

Policies usually will group these coverage options and require you to get both. If you have an auto loan, you will likely have to carry these as they will ensure the lender gets repaid should your vehicle be a total loss.

Uninsured/Underinsured Motorist

Uninsured/underinsured motorist coverage provides you with payments when you are in an accident caused by someone who does not have enough insurance or no insurance. It is also applicable in situations like a hit-and-run where you do not know who is at fault.

Personal injury protection (PIP)

PIP pays for injuries and related expenses to yourself and those in your vehicle after a crash. The coverage may encompass:

  • Lost wages;
  • Medical payments;
  • Replacement of services; and/or
  • Funeral costs.

In no-fault states where it does not matter who caused an accident, PIP is usually required coverage.

Review Your Insurance Policy

Now that you understand the important coverage areas, it is essential to review your insurance policy to see what it covers. If you are in an accident, knowing this information will be incredibly helpful.

Even with insurance, you may still need help to collect damages and ensure payment for other expenses related to a crash. Cava Law Firm can help.

We offer free consultations so you can see exactly what we might do for you and how we could assist with your situation. Our results speak volumes. We have recovered payouts of five times their settlement offers for many clients.

Winning is NO accident! Contact us today at (413) 737-3430 or (413) 781-CAVA (2282).

Attorney Jennifer L. Cava-Foreman

Attorney Jennifer L. Cava-Foreman would like to take the guesswork out of choosing a lawyer by letting the facts and her winning verdicts speak for themselves. Attorney Cava-Foreman is known in the local courts and has firsthand experience with many types of cases ranging from personal injury to criminal defense. Attorney Cava-Foreman understands that every case and every client is different. Whether a client is injured or mixed up in a criminal matter, she will provide the legal advice needed and stand up for her client in court. [ Attorney Bio ]

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