Frequently Asked Questions

Automobile Insurance

  1. What changes are being made to the Massachusetts Auto Insurance market?
  2. How can I save now on my insurance costs?
  3. What have you as my agent done to stay informed of the changes in Massachusetts Auto Insurance?
  4. I just moved here from out of state. How do I get insurance?
  5. My registration renewal form from the Registry says it needs an insurance stamp. What should I do?

1. What changes are being made to the Massachusetts Auto Insurance market?

In 2008, the Commissioner of Insurance announced that insurers may now "compete" in the personal auto insurance market by setting their own rates and potentially offering new coverage options. The Commissioner continues to closely scrutinize company rate filings and she refers to the new plan as "managed competition". A second part of the new plan is an assigned risk market for high-risk drivers. More information on the assigned risk plan is below.

2. How can I save now on my insurance costs?

In addition to credits for loyalty to a particular company, roadside assistance programs and paying your premium in full, we continue to see enhanced account credits for those who have their home and auto with the same carrier and/or agency. If you currently do not have your home insurance with us, we would be happy to provide a no obligation estimate for homeowners insurance coverage.

3. What have you as my agent done to stay informed of the changes in Massachusetts Auto Insurance?

As an Independent Insurance Agent, we have traditionally competed in all lines of the insurance business every day. We fully intend to thrive in this new system. All of our account managers that handle auto insurance have already taken training classes and will continue to attend training as more changes are implemented. Also, as a member of Insurance Services of New England, an aggregation of agencies in New England, we have access to almost every major insurance market in Massachusetts through "A" rated regional and national insurance carriers.

4. I just moved here from out of state. How do I get insurance?

A Massachusetts auto policy cannot provide coverage for a vehicle registered in another state. In order to get a policy here, you also need to register the vehicle here. Since insurance and registration are tied together in MA, we will assist you with getting your vehicles registered. You do NOT have to get your MA driver's license before you register your vehicle.

You will need the current out of state Title to your vehicle. If your Title is being held by a Loss Payee or your vehicle is leased, please provide us with the name and phone number of the Loss Payee or Lessor, as well as your account number, so that we may contact them for the necessary forms. When your vehicle is registered in MA, a new MA Title will be sent to them directly.

5. My registration renewal form from the Registry says it needs an insurance stamp. What should I do?

Simply mail it to us with a check, payable to the Registry of Motor Vehicles, for the fee noted on the form. We will stamp it and forward it to the Registry for you. The Registry will mail your registration renewal and sticker to the mail address on file with them.

Also remember to notify the Registry when you change your address. Registry mail is not forwarded. You can change your address on-line at www.massrmv.com.

If you do not receive your renewal form, please call us. There are several reasons that may have kept you from receiving it. We can check the Registry for you, advise you why you didn't receive the form and provide you with a renewal form.

MAIP Questions

  1. What is the Assigned Risk Plan (called MAIP) for high-risk drivers?
  2. How will it be decided that a driver has to get insurance through the Assigned Risk Plan (MAIP)?
  3. Is it possible for an insured, who has been non-renewed for any reason to be assigned to the same carrier that non-renewed them?
  4. Are newly licensed drivers MAIP eligible?
  5. My policy was cancelled for non-payment. Am I MAIP eligible?

1. What is the Assigned Risk Plan (called MAIP) for high-risk drivers?

As part of the Commissioner’s new auto insurance plan, there has been a change in how high risk drivers obtain insurance. The MAIP randomly assigns insurers to cover high-risk drivers. High-risk drivers will no longer be able to choose their insurer. However, you may still do business with us, your agent, and we will have direct access to the MAIP.

2. How will it be decided that a driver has to get insurance through the Assigned Risk Plan (MAIP)?

As part of the managed competition, the Commissioner of Insurance will allow insurers to "underwrite" drivers based on driving histories and coverage limits. If no insurer is willing to offer voluntary coverage to the driver, they will have to obtain coverage through the MAIP.

Companies may decline to write coverage for drivers with points on their driving record. Even drivers with “clean in three” records may be declined voluntary coverage for other reasons. However, voluntary companies may not cancel or non-renew a policy if the operators all have “clean in three” records.

Voluntary companies may also decline to accept policies with low limits, even if all operators have clean driving records. We recommend limits of at least 100/300 for those drivers who are just starting out, and higher limits of 250/500 for insured’s who own their house or have other valuable assets.

3. Is it possible for an insured, who has been non-renewed for any reason to be assigned to the same carrier that non-renewed them?

Yes, assignments will be made randomly, based on company quota share and the possibility exists that a non-renewing carrier could receive the risk back through the assignment process.

4. Are newly licensed drivers MAIP eligible?

Newly licensed operators with less than six years of driving experience are MAIP eligible.

However, the addition of any newly licensed operator to a policy that already is in effect does not make that policy MAIP eligible.

5. My policy was cancelled for non-payment. Am I MAIP eligible?

An insured in default in the payment of any motor vehicle insurance premiums in the past 24 months is MAIP eligible. The full annual premium is due at policy inception those insureds who have had a non-payment cancellation within the past two years.

Homeowner Insurance

  1. Is my jewelry covered under my Homeowner policy?
  2. How much coverage should I have on my house?

1. Is my jewelry covered under my Homeowner policy?

All Homeowner policies provide limited coverage for jewelry and other classes of property. The coverage under the policy is limited to the perils named in the policy and losses are subject to the policy deductible. All companies offer scheduled coverage (listing each item separately with its appraised value)for most of these classes of property which broadens the coverage and eliminates the deductible. Some companies offer "blanket" scheduled coverage which eliminates the need for listing each item. However, at the time of a loss, the burden of proof of owner ship and value rests with you - so make sure you keep good records.

2. How much coverage should I have on my house?

The insurance coverage on your house is based on the rebuilding cost of your home. Depending on the location, town amenities and market conditions, this can vary greatly from the real estate value of your home. We will help you in determining the initial amount of insurance. We will ask questions about the size, construction and features of your home. We will then use a replacement cost program, provided by Marshall-Swift, Boeck that is recognized by all companies, to estimate the value of your home. Many companies will also inspect the property after the coverage is written. Depending on the size of the home, this inspection could be a drive-by or a complete interior and exterior inspection done by appointment with you.

The Homeowner contract requires that you carry at least 80% of the replacement value of the home and many company underwriting rules will now require that you carry 100% of the replacement value. If you have a mortgage on your home, the bank will also require that you carry 100% of the replacement value.

Umbrella Policy

  1. What is a Personal Umbrella Liability Policy?
  2. Do I need a Personal Umbrella Liability Policy?
  3. Are Personal Umbrella Liability Policies expensive?
  4. Is a $1,000,000 Umbrella enough coverage?

What is a Personal Umbrella Liability Policy?

Umbrella Liability provides an additional layer of liability coverage over your automobile, home and other personal policies. This is designed to protect you from third party lawsuits.

Do I need a Personal Umbrella Liability Policy?

Yes - We recommend that everyone have a Personal Umbrella Liability Policy. Contact one of your Customer service Representative today!

Are Personal Umbrella Liability Policies expensive?

No, when you review what they cover and their value, an umbrella policy is a nominal cost. An average consumer would pay between $175 - $200 per year, for $1 Million in coverage.

Is a $1,000,000 Umbrella enough coverage?

Your coverage amount is based on your personal assets. You should evaluate your finances closely to determine what is the proper amount of coverage that will fit your insurance needs.

Boats & Yachts

  1. What is covered by a watercraft policy?
  2. What does "market value" really mean?
  3. Are there discounts for successfully completing safe boating classes?
  4. Will I be covered if my motor breaks down?

What is covered by a watercraft policy?

The essential coverages are:

  • Hull Coverage
  • Liability
  • Medical Payments
  • Personal Effects and Towing

What does "market value" really mean?

Market value is the amount we pay when you make a claim and the boat is not economical to repair. Market value is the amount we calculate the market would pay for your boat. It takes into account the make, model, age, and condition of your boat immediately before the insured incident occurs. We might use recognized industry publications a guide. When we settle a claim for your boat, we pay market value or the sum insured shown on your Certificate of Insurance, whichever is less.

Are there discounts for successfully completing safe boating classes?

Yes. Premium discounts are available with successful completion of any safe boating courses approved by the National Association of State boating Law Administrators (NASBLA). These include courses by the Coast Guard Auxiliary, Power Squadron, Red Cross, the online course administered by the Boats Foundation for Boating Safety and others.

Will I be covered if my motor breaks down?

We do not cover any mechanical, electrical or electronic failure of a motor, including seizing or overheating. We provide cover if your motor is damaged as a result of an insured event or when your boat is run aground, sunk, or burnt and your claim otherwise falls within the terms of the policy. Lack of maintenance or the use of contaminated fuel is not covered, as these are considered to be maintenance issues.