1. Minimum auto insurance coverage does not protect assets.
Massachusetts requires relatively low auto insurance limits. While those limits satisfy legal requirements, they are often insufficient to protect personal or business assets after a serious accident.
2. Auto insurance is a risk-management decision, not a routine purchase.
For business owners and professionals, auto insurance should be viewed as part of an overall financial protection strategy, not simply as a recurring expense.
3. Liability exposure can extend well beyond the vehicle.
A serious accident can create claims that reach personal savings, real estate, and future income. Coverage limits should reflect what you have to protect.
4. Underinsured motorist coverage protects you from other drivers’ inadequate insurance.
Many drivers carry only minimal coverage. Underinsured motorist coverage allows your own policy to help cover injuries and losses when the at-fault driver’s insurance falls short.
5. Umbrella policies provide critical excess protection.
An umbrella policy adds an extra layer of liability coverage beyond auto and homeowners insurance and can be an important safeguard for individuals with significant assets.
6. Medical payments coverage can reduce financial disruption after an accident.
This coverage can help pay medical expenses without later reimbursement claims from health insurers, helping preserve settlement value and reduce out-of-pocket costs.
7. A knowledgeable insurance agent can help identify coverage gaps.
Working with an experienced agent allows you to review coverage options, understand tradeoffs, and adjust limits based on your assets, family, and business exposure before a problem arises.
8. Insurance coverage should evolve as assets and responsibilities grow.
As businesses expand, families change, and assets accumulate, insurance coverage should be reviewed regularly to ensure it remains aligned with current risk.
Edward Bassett is an attorney at Worcester law firm Mirick, who specializes in personal injury and product liability cases.
