# -1- ## BUYING YOUR MASSACHUSETTS AUTOMOBILE INSURANCE 1989 MICHAEL S. DUKAKIS Governor of Massachusetts ROGER M. SINGER Commissioner of Insurance Commonwealth of Massachusetts Division of Insurance FROM THE COMMISSIONER "Buying Your Massachusetts Automobile Insurance" has been prepared for you by the Massachusetts Division of Insurance as part of our continuing effort to inform consumers on the detailed and sometimes complex aspects of purchasing automobile insurance in the Commonwealth. This guide outlines the basic automobile coverages you are required by law to purchase, as well as the coverages available to you on an optional basis. We have also included a description of the Safe Driver Insurance Plan - an incentive plan which offers policyholders premium credits for careful and safe driving habits. Furthermore, this guide provides information on filing complaints and money-saving tips for reducing your premium without sacrificing insurance protection. I urge you to examine closely the new choices in coverages, limits, deductibles, and discounts effective for 1989, made possible by the passage of the Automobile Insurance Act of 1988. As you may know, this represents the first improvement in the No-Fault law which, when enacted in 1970, succeeded in speeding up payments to injured persons while reducing bodily injury claims and holding down premiums. However, the law had never been revised to take into account years of medical cost inflation. Insureds will now enjoy a significant savings as the result of a No-Fault system updated with greater Personal Injury Protection together with a higher threshold for filing personal injury lawsuits. Furthermore, as a strong, consumer-oriented reform initiative, this new law gives Massachusetts consumers greater choices when buying their 1989 automobile insurance. The most notable additions include changing the standard deductible from $300 to $500 for both the collision and comprehensive coverages, making available a $100 glass deductible, increasing the discount available for vehicles equipped with a signal-activated recovery system, and making the underinsured automobile coverage optional. In addition, the reform law permits insurers to pay consumers directly for collision and comprehensive claims, thus encouraging competitive pricing for repairs. Finally, the law requires insurers to inspect certain used cars prior to issuing comprehensive and collision coverages as one way to cut costs in the system. If you need further information on automobile insurance, contact the Massachusetts Division of Insurance at 280 Friend Street, Boston, MA 02114, (617) 727-3333 or 436 Dwight Street, Room 338, Springfield, MA 01103, (417) 784-1190. I hope this brochure will be helpful to you, whether you are purchasing a policy for the first time, or renewing an old policy. I invite you to contact the Division with any questions or concerns you may have. Roger M. Singer Commissioner of Insurance CONTENTS 1. WHAT TYPE OF INSURANCE AM I REQUIRED TO PURCHASE? Part 1: Bodily Injury to Others.................. Part 2: Personal Injury Protection............... Part 3: Bodily Injury Caused by an Uninsured Auto........................... Part 4: Damage to Someone Else's Property........ 2. WHAT OTHER COVERAGES ARE AVAILABLE? Part 5: Optional Bodily Injury to Others......... Part 6: Medical Payments......................... Part 7: Collision................................ Part 8: Limited Collision........................ Part 9: Comprehensive............................ Part 10: Substitute Transportation................ Part 11: Towing and Labor......................... Part 12: Bodily Injury Caused by an Underinsured Auto........................ 3. SAVING MONEY........................................... 4. SAFE DRIVER INSURANCE PLAN............................. 5. WHAT DO I DO IF I HAVE A COMPLAINT?.................... WHAT TYPE OF INSURANCE AM I REQUIRED TO PURCHASE? Since 1927, under Massachusetts insurance law, motorists have been required to purchase compulsory motor vehicle liability insurance. All registered motor vehicles in the Commonwealth must be insured under Parts 1, 2, 3 and 4 of the Massachusetts Automobile Insurance Policy. When you buy this insurance, you receive financial protection in case you become involved in an accident. There are eight other coverages available to you, and in general it is up to you whether you purchase them or not. These optional coverages provide additional protection against financial loss resulting from an automobile accident. If you have borrowed money to purchase your automobile, your lender may legally require you to carry the optional coverages, Collision (Part 7) and Comprehensive (Part 9). Although automobile insurance will always be expensive in an urban state like Massachusetts, many motorists continue to pay a higher premium than they should because they buy coverages that do not suit their needs. The most common and costly mistake consumers make when buying automobile insurance is to automatically renew last year's policy without taking into account how their insurance needs might have changed. Instead, when you renew a policy, take the time to reevaluate your insurance choices and your eligibility for the many discount opportunities. Furthermore, buy only the coverages you need and select deductibles you can afford. This will make a big difference in your insurance bill. Of course, not all insurance-buying decisions are simple or clear-cut, because you cannot predict the future. When in doubt, remember that it is more important to have insurance against large losses which could threaten your standard of living than smaller losses that you can afford to pay yourself. Compulsory Coverages Part 1: BODILY INJURY TO OTHERS will pay for the damages to anyone injured or killed by your auto in Massachusetts up to a limit of $10,000 per person and $20,000 per accident. Part 1 applies whether your auto is being driven by you or by someone else with your permission. However, this coverage never covers injuries to the driver of your auto or to guests in your auto. Limits higher than $10,000 per person and $20,000 per accident and coverage for injuries incurred by guest occupants of your auto and for out-of-state accidents may be purchased under Part 5. Part 2: PERSONAL INJURY PROTECTION (PIP), provides payment of up to $8,000 to you, anyone driving your auto with your consent, anyone living in your household, passengers in your auto and pedestrians struck by your auto, for expenses incurred as the result of an accident, without regard to fault. PIP pays for medical expenses, replacement services and 75% of any lost wages. If you already have good health insurance and disability health plans - provided by your employer, for example - you should consider taking a deductible and excluding yourself and the members of your household from this coverage. However, remember that even with a comprehensive health insurance plan, you would not be provided with coverage for lost wages and replacement services, unless your employer offers a wage continuation program. Under the reform legislation the list of permissible PIP deductibles has been expanded to include, $4000 and $8000. Even with a large deductible for you and members of your household, guests in your automobile and pedestrians are still fully covered. Part 3: BODILY INJURY CAUSED BY AN UNINSURED AUTO protects you, members of your household, and guests in your automobile against losses caused by an uninsured automobile, or from a hit-and-run accident, unless the household member or guest are protected by their own or another auto insurance policy. In addition, this coverage protects you and members of your household as pedestrians against injuries caused by an uninsured auto or a hit-and-run driver. Compulsory uninsured automobile coverage requires a minimum limit of $10,000 per person and $20,000 per accident. Increasing this coverage makes good sense for most people, especially for persons who travel outside of Massachusetts, as compulsory auto insurance is not mandatory in all states. Previously, consumers were required to buy Underinsurance as part of the Uninsured Automobile coverage. This year however, Underinsured coverage is no longer automatically included in Part 3. If you wish to be protected with Underinsured Automobile coverage, you will have to purchase it separately under the optional coverage, Part 12. Keep in mind that you can purchase Part 3 coverage with limits that are lower than but not higher than the limits you purchase for Part 5. It is recommended that you purchase this coverage in limits equal to the limits you purchase under Part 5. Part 4: DAMAGE TO SOMEONE ELSE'S PROPERTY pays for property damage and for costs resulting from the loss of the use of property damaged from an accident caused by you, a household member or anyone using your auto with permission. This Part never covers damage to your automobile or property. The minimum amount required is $5000. However, you should consider purchasing this insurance with higher limits. Today's new car and repair prices being what they are, a limit of $25,000 is a good choice for many people. WHAT OTHER COVERAGES ARE AVAILABLE? There are eight other coverages available to you in addition to the compulsory insurance. You should be aware that your insurance company may refuse to issue you some optional coverages because of certain prior driving violations or insurance-related crimes. Optional Coverages Part 5: OPTIONAL BODILY INJURY TO OTHERS allows you to extend the protection you must purchase under Part 1, by offering coverage above the $10,000/$20,000 limit for injuries caused by you in Massachusetts, in other parts of the United States, and in Canada. Unlike the compulsory Bodily Injury insurance, Part 5 will pay for injuries to guests of your automobile and for injuries to others caused by any person who is using your car with your consent. To protect your assets and future income, it makes good sense to buy higher limits under this Part; $100,000 per person and $300,000 per accident will meet most drivers needs. Such additional coverage is valuable since, considering the rising costs of medical and hospital care, court judgments can easily exceed $20,000. Part 6: MEDICAL PAYMENTS covers medical expenses for injuries resulting from any accident involving you, any household member and any passenger, once the limits provided under Part 2, Personal Injury Protection have been exhausted. It does not cover lost wages. Drivers who have comprehensive health insurance plans may not need the extra coverage provided under Part 6. You should, however, think about buying this Part if you and your household members do not already have adequate health insurance or if you want this protection for passengers in your automobile. Part 7: COLLISION insurance pays for damage to your automobile caused by a collision regardless of fault. The cost of collision protection varies with the model and year of your automobile, where it is garaged and the operator classification. Because it pays for damages regardless of fault, this Part is expensive to purchase. Unfortunately, there is no good rule-of-thumb to use when purchasing Collision coverage. If your automobile is financed, your lender may require you to carry this Part on your policy. However, if you own your automobile outright, your decision to purchase Collision should depend on whether or not you can afford to replace your automobile without help from your insurance company. A deductible is the portion of each claim you agree not to be covered for. For example, if you purchase Collision with the standard $500 deductible and you suffer a loss of $700, you will collect $200 from your insurance company. If a loss of less than $500 occurs, you are responsible for the entire amount. Collision protection can be purchased at a much lower price when you purchase a deductible higher than the standard $500 deductible. Choose the larger deductible if you can afford to pay a larger loss out of your own pocket. You also have the option to purchase the more expensive $300 deductible. The choice is not an easy one, so take the time to evaluate your financial circumstances when purchasing this and any other available deductible. Under the Automobile Insurance Act of 1988, your company may require a $500 Collision or Limited Collision deductible if you have had a major at-fault accident within the previous three years. WAIVER OF DEDUCTIBLE coverage may be purchased at a higher premium if you opt to purchase Collision coverage. The Waiver of Deductible allows any deductible you choose to be ignored in cases of fault on the part of another identifiable driver. The deductible would not be waived in a hit-and-run accident, even if the unidentifiable party was completely at fault. You might choose to purchase the Waiver of Deductible for the benefit it offers if you are involved in an accident caused by an identifiable, insured driver. While many policyholders are willing to pay the additional cost for the Waiver of Deductible's convenience, others view the benefits as too few to justify the extra premium. NOTE: Your failure to list a household member as an operator on your policy may have very serious consequences. Your insurer will not pay for a Collision loss for an accident which occurs while your auto is being operated by a household member who is not listed as an operator on your policy. Payment is withheld when the household member, if listed, would require the payment of additional premium on your policy because the household member would be classified as an inexperienced operator or would require the payment of an Unsafe Driver Point Surcharge on your policy under the Safe Driver Insurance Plan. Part 8: LIMITED COLLISION also pays for damages to your automobile caused by a collision, although in limited circumstances. Because this coverage is not as broad as Part 7, its cost is considerably less. This coverage will not pay for one-car accidents, accidents in which you are more than 50% at fault, or for accidents where the owner or driver of the other vehicle cannot be identified. Limited Collision will pay for most other accidents and offers the convenience of dealing with your own insurance company. If you are willing to pay for the damage you might cause to your auto, or if the value of your auto does not justify purchasing full Collision coverage, then Limited Collision or no collision coverage is your best bet. You may reduce or eliminate the $500 standard Limited Collision deductible for an extra premium. NOTE: Your failure to list a household member as an operator on your policy may have very serious consequences. Your insurer will not pay for a Limited Collision loss for an accident which occurs while your auto is being operated by a household member who is not listed as an operator on your policy. Payment is withheld when the household member, if listed, would require the payment of additional premium on your policy because the household member would be classified as an inexperienced operator or would require the payment of an Unsafe Driver Point Surcharge on your policy under the Safe Driver Insurance Plan. Part 9: COMPREHENSIVE coverage will pay for losses which are not caused by a collision, such as fire, theft, and vandalism losses. In addition, this insurance will pay you up to $15 a day for substitute transportation until your stolen auto is recovered (up to a limit of $450). Comprehensive coverage does not insure personal belongings in your auto unless they have been made a permanent part of your automobile. This means that clothing is never covered, but a C.B. radio permanently installed in the opening of the dash or console is. The standard deductible for Comprehensive coverage is $500, although you have the option to purchase a $300 deductible. As with the Collision coverage, buying back to the lower deductible will raise your premium cost. Seriously consider choosing a larger deductible than the standard one if you can afford to pay a larger loss out of your own pocket. You should also consider installing an anti-theft device and/or a signal-activated vehicle recovery system. Anti-theft equipment and recovery system discounts, which are discussed in the Saving Money Section, range from 5% to 35%. This year, as a result of the Automobile Insurance Act of 1988, you have the option of purchasing a $100 deductible on glass claims. If you take a deductible, you will reduce the cost of your Comprehensive coverage by 8%, however if you have a claim for a broken windshield or other glass damage, you will have to pay for the first $100 of that damage. Part 10: SUBSTITUTE TRANSPORTATION pays up to $15 a day for car rental, taxicab fares and other transportation costs (up to a limit of $450). You should carefully consider whether you need this coverage. Claims for loss of use caused by another driver are generally payable under that driver's Damage To Someone Else's Property coverage (Part 4). Comprehensive Coverage (Part 9) provides reimbursement for loss of use resulting from theft. Moreover, Substitute Transportation coverage does not pay under all conditions. If your auto is being repaired or replaced because of damages that would be covered under Collision coverage (Part 7), you can collect under Part 10. There is no coverage, however, if your auto is merely in the shop for routine repairs. Please note that if you are under the legal age or have a poor credit rating you may be unable to rent a vehicle. However, you do remain eligible for the reimbursement of transportation expenses. Part 11: TOWING AND LABOR will pay up to $25 for towing and labor charges each time your automobile breaks down. The cost of replacement parts is not covered and labor is covered only to get your auto going again at the place of breakdown. If you belong to a motor club, you may already have Towing and Labor coverage - so check your club's benefits before purchasing Part 11. Your insurance company may legally refuse to sell you Towing and Labor coverage. Part 12: BODILY INJURY CAUSED BY AN UNDERINSURED AUTO will pay damages for bodily injury to people injured of killed as the result of certain accidents caused by someone who does not have enough insurance, up to the difference between the total amount collected from the automobile bodily injury liability insurance covering the owner and the operator of the auto and the limits you purchased for this coverage. Your company will pay damages to or for you, or any household member, unless the household member has his or her own Massachusetts auto policy or is covered by a Massachusetts auto policy of a household member providing similar coverage with higher limits, if you are injured as a pedestrian or while occupying an auto you do not own. They will also pay damages to or for anyone else occupying your auto unless that person has his or her own Massachusetts auto policy or is covered by a Massachusetts auto policy of any household member providing similar coverage. Below are some examples of how this coverage works: EXAMPLE 1 - You do not have to buy the Underinsured Auto coverage. You are injured in an auto accident caused by the other driver who is legally responsible for your injuries. Your damages total $20,000. The other driver's bodily liability limit is $10,000. You can collect $10,000 from the other driver's insurance, but you must sue the other driver to collect the other $10,000. If the other driver has no assets, you could suffer a loss of $10,000. EXAMPLE 2 - You purchase Underinsured Auto limits of $15,000 per person; $30,000 per accident. Your damages are $20,000. The other driver's policy provides $15,000 of bodily injury liability insurance, which you collect from his company. Since there is no difference between the Underinsured Motorists Coverage limits you purchased and the other driver's bodily injury liability limits, you cannot recover the balance of the $5,000. EXAMPLE 3 - You purchase Underinsured Auto coverage limits of $20,000 per person; $40,000 per accident. Your damages are $30,000. The other driver's policy provides $10,000 of bodily injury liability insurance, which you collect from his company. You can only collect an additional $10,000 from your company. This is the difference between the amount collected from all automobile bodily injury liability limits and your Underinsured motorists limit of $20,000 for each person. EXAMPLE 4 - You purchase Underinsured Auto coverage limits of $20,000 per person; $40,000 per accident. Your damages are $20,000. The other driver's policy provides $10,000 of Bodily Injury Liability insurance which you collect from his company. Your Underinsured Auto coverage will pay you $10,000 in full payment of your outstanding damages. This is the difference between the other driver's Bodily Injury limits and your Underinsured Motorists Coverage limits. Keep in mind that since all registered motor vehicles must have the compulsory Bodily Injury limits of $10,000 per person; $20,000 per accident, purchasing Underinsured Motorist coverage limits of $10,000/$20,000 provides little or no coverage. If you choose to purchase Underinsurance coverage, you may buy limits that are less than but not higher than the limits purchased under Part 5, however it is recommended that you buy it in limits equal to the limits you purchase under Part 5. SAVING MONEY Getting the discounts you are entitled to, paying attention to detail, and driving conscientiously can all work to keep your insurance costs down. By following the suggestions listed below, you will maximize the available savings. Be An Alert Shopper Before choosing your coverages, limits and deductibles, read the Massachusetts Automobile Insurance Policy and the Mandatory Endorsement carefully to be certain that you understand the coverages and the new changes resulting from the Automobile Insurance Act of 1988. Assess your driving habits in order to determine the coverages and limits you need. When filling out the application, make sure that you complete it accurately in order for your policy to be properly rated. Finally, when you receive your Coverage Selections Page, do not file it away without checking to see that the coverages, limits, deductibles, discounts and premium are correct. Review Your Bill You do not leave the store without a receipt - and you should not buy auto insurance without an itemized bill! First, look at your bill to find out whether any part of the total cost is for service fees. Although some agents and brokers charge nothing for the additional effort needed to fill out various forms or to bring your license plates from the Registry, others will charge you a fee for performing such services. However, no agent or broker can charge service fees in connection with issuing or renewing your automobile insurance policy, nor are you legally bound to pay for any other services your agent or broker performs without your consent. Your itemized bill should tell you whether you have been enrolled in a motor club. Obviously, if you do not want to join a motor club or if you are already a member of a different motor club, you should not pay the membership dues. If you do belong to a motor club, check to see if membership includes benefits similar to the Towing/Labor and Substitute Transportation coverages - there is no point in buying duplicate coverage. Of course, the main thing your insurance bill will tell you is how much you owe. According to state law, no company, agent or broker can ask you to pay more than 30% of your premium before you renew your coverage (although you may pay more than 30% if you wish). However, if you have defaulted on a premium payment during the previous twenty-four months, your insurer can legally require payment of 100% of your premium. Should you choose to pay less than your total bill, it is likely that you will have to pay some kind of finance charge. Choose your finance plan carefully. Commercial lenders and insurance premium finance agencies charge up to 18% interest per year on the unpaid balance. Insurance premium finance agencies may also charge an additional $16 fee for setting up the account. For many policyholders, another way of making time payments is to do business with an insurance company that will bill you in installments and charge a flat fee for each billing. These charges vary from company to company and according to the number of installments you want to make. In some instances the company's carrying charges will cost you less than other financing arrangements. Discount Opportunities Be particularly careful to answer those application questions relating to the following five discounts, which can cut your insurance costs considerably if you qualify for them. * Low Mileage Discount - If you drive 5,000 or fewer miles per year, you are eligible for the maximum 10% discount. If you drive between 5,001 and 7,500 miles per year, you are eligible for a 5% discount. The discount applies to all coverages except Comprehensive, Substitute Transportation, and Towing and Labor, and applies to the rate for each insured car as otherwise determined by territory, driver class, vehicle model year and symbol, prior to the application of SDIP surcharges or credits. * Senior Citizen Discount - Drivers 65 years or older who are principal operators of their cars receive a 25% reduction on all their auto coverages, provided there is no inexperienced driver (one with less than six years of driving experience) listed on their policies. Cars used for business are not eligible. The 25% discount does not apply to Unsafe Driver Point Surcharges. * Public Transportation Discount - Choosing to take public transportation instead of using your automobile can save you 10% on your property damage liability and collision coverages. The maximum discount is $75. To obtain this discount, you must show evidence of purchase of 11 months of commuter passes or tickets from a qualified transit system. * Anti-Theft and Recovery System Discounts- Policyholders who install certain kinds of anti-theft devices are eligible for a 5%, 15%, or 20% discount on Comprehensive coverages. Effective for 1989, the installation of a signal-activated vehicle recovery system, in combination with an approved anti-theft device, can qualify you for a savings between 25%-35%. The size of the discount varies, depending on the kind of anti-theft device, and whether it is combined with a vehicle recovery system. You should seriously consider buying and using some kind of anti-theft device and/or vehicle recovery system. Before you choose a particular brand or model, check with your agent, broker or company representative about the discount. A quick check before you buy can help you avoid an expensive misunderstanding later. * Multi-Vehicle Discount - Individuals and married couples who own more than one car and insure them for Collision or Limited Collision coverage with the same company can get a 5% discount on these coverages. This discount is available only to experienced drivers. Inexperienced drivers can realize a 10% savings on three of the four compulsory coverages and on optional liability and collision coverages, if they complete an approved driver-training course. The savings is calculated into the rates for the particular driver classifications. Finally, you can affect the cost of your policy by how you and the other operators of your auto drive. You will receive a Safe Driver Credit on your policy if you and the other operators maintain good driving records. More detailed information about the Safe Driver Insurance Plan is in Section 4 of this guide. SAFE DRIVER INSURANCE PLAN Safe and careful driving habits help to ensure the safety of the vehicle, driver, occupants, and others. Good driving habits will also save you money on your automobile insurance premiums based on the driving records of the operators listed on your policy. If you and the other drivers listed on your policy have clean driving records, and depending upon the length of time you and the other drivers have maintained clean driving records, your premium will be reduced by one of three Safe Driver Credits, up to a maximum of $120 for each vehicle. If you or any other driver listed on your policy caused an accident or violated any surchargeable motor vehicle traffic law, your premium will increase due to the application of Unsafe Driver Points. Safe Driver Credits The Safe Driver Insurance Plan for policy year 1989989 provides for an Excellent Driver Award 5-Year Credit, a 4-Year Credit, and a 3-Year Credit. Credits are applied to a vehicle on the basis of the driving record of the operator assigned to the vehicle. Operators are assigned to vehicles in accordance with the rules established in the Safe Driver Insurance Plan. A vehicle insured by your policy may be eligible for either an Excellent Driver Award 5-Year Credit, a 4-Year Credit or a 3-Year Credit if: the listed driver assigned to the vehicle has not had a surchargeable at-fault accident or motor vehicle traffic law violation within the 5, 4, or 3 year period immediately preceding the policy effective date; the listed driver has a valid Massachusetts license and the vehicle is not rated as principally operated by a driver with less than three years experience. How to Check for a Credit Safe Driver Credits are determined annually by the Commissioner of Insurance. For 1989989, there are three Safe Driver Credits. The maximum credit can be as much as $120 depending on the limits purchased under Damage To Someone Else's Property (Part 4). If you wish to check your credit, multiply the premium shown for the Damage to Someone Else's Property coverage (Part 4), by a factor of: * 65%, for a 5-Year Credit, up to a maximum of $120 or, * 60%, for a 4-Year Credit, up to a maximum of $110 or, * 50%, for a 3-Year Credit, up to a maximum of $90 Unsafe Driver Points Your policy is subject to Unsafe Driver Points if you or the other drivers listed on your policy: * are more than 50% at fault in an accident and an insurance company pays more than $200 under Damage To Someone Else's Property (Part 4) or Collision coverage (Part 7) or, * are convicted of violating certain Massachusetts motor vehicle traffic laws or, * are assigned to a driver alcohol education program. Unsafe Driver Points are applied to a vehicle based upon the driving record of the operator assigned to that vehicle. Surchargeable Incidents AT-FAULT ACCIDENTS - If you are involved in an accident and you file a Collision claim, or if another person files a claim under Damage To Someone Else's Property, your insurance company must determine who was more than 50% at fault. If your company finds that you were at fault and pays a claim of more than $200, it must send you a Surcharge Notice. The accident will become part of your driving record for a period of five years from the date of notice, unless: * the company withdraws the notice or * you appeal the notice to the Board of Appeal and that Board determines that you were not more than 50% at fault in the accident. It makes no difference whether the at-fault accident occurred in the Commonwealth or out-of-state; the at-fault accident will be added to the involved operator's driving record. Accident surcharges must be appealed at the time you receive the Surcharge Notice. Detailed instructions telling how to and where to appeal are on the Surcharge Notice. The Board of Appeal will hold the hearing and will notify you of its decision. If you win your appeal, the Merit Rating Board will remove the at-fault accident from your driving record. If the Unsafe Driver Points for the accident are billed on your policy while your appeal is pending, you must pay the additional premium. Your policy will be re-rated by your insurance company if you win the appeal. MOTOR VEHICLE TRAFFIC LAW VIOLATIONS - If you paid a fine or were convicted of violating certain motor vehicle traffic laws, or if you were assigned to an alcohol education program, the court will notify the Merit Rating Board. The motor vehicle traffic law violation will be added to your driving record and will remain on your record for a period of five years from the court judgment date unless you successfully appeal your conviction to a higher court. A list of surchargeable motor vehicle traffic law violations may be obtained from the Merit Rating Board. COMPREHENSIVE CLAIMS - Under the Safe Driver Insurance Plan, your private passenger automobile insurance policy may also be subject to surcharge if you submit four or more Comprehensive claims on or after January 1989, 1989984, totaling $2,000 or more. Your insurance company notifies the Merit Rating Board when a Comprehensive claim has been paid. Comprehensive claims are added to the policyholder's driving record. ASSIGNMENT OF UNSAFE DRIVER POINTS AND SAFE DRIVER CREDITS The number of Unsafe Driver Points assigned to an operator is determined by the type of incident. There are four types: Major At-Fault Accident, Minor At-Fault Accident, Major Traffic Law Violation, and Minor Traffic Law Violation. To find the applicable number of points, see the Unsafe Driver Point Table for the appropriate incident. Unsafe Driver Points are not assigned to a non-criminal minor traffic law violation if it is the first moving traffic law violation in the operator's five-year Experience Period. The violation is entered onto the individual's driving record and will result in the denial of a credit, but no Unsafe Driver Points will be assigned. Operators are assigned to the vehicles on your policy using the listed operator with the highest number of Unsafe Driver Points first. The remaining operators are assigned to the remaining vehicles using the operator with the next highest number of Unsafe Driver Points. The Unsafe Driver Points of a particular operator cannot be billed more than once on a policy. An operator with a 3-Year Credit will be assigned to a vehicle before an operator with a 4-Year Credit or an Excellent Driver Award. An operator with a 4-Year Credit will be assigned to a vehicle before an operator with an Excellent Driver Award. If there are more vehicles than operators, the excess vehicles will be assigned zero Unsafe Driver points if no operator is credit eligible; excess vehicles will be assigned an Excellent Driver Award if one of the operators is eligible for an Excellent Driver Award; excess vehicles will be assigned a 4-Year Credit if one operator is eligible for a 4-Year Credit and no operator is eligible for an Excellent Driver Award; excess vehicles will be assigned a 3-Year Credit if one operator is eligible for a 3-Year Credit and no operator is eligible for a 4-year Credit or an Excellent Driver Award. Experience Period of a Policy The Experience Period for a policy with an effective date in 1989989 is the 5-year period immediately preceding the effective date of the policy. All incidents remain on your driving record for five years from the surcharge date. However, no Unsafe Driver Points are billed for an incident after the third year. The surcharge date for an at-fault accident is the date of notice as entered on the surcharge notice by your insurance company. The surcharge date for a motor vehicle traffic law violation is the date the court entered the judgement. To determine the Experience Period of your 1989 policy, go back five years from your policy effective date. Any incident with a surcharge date within three years of the policy effective date may result in increased premium and a Safe Driver Credit will be denied. AGING As a further incentive to promote good driving habits, one point for each incident on your record during the three years, immediately preceding the effective date of your policy will be subtracted for each complete 12-month period of clean driving between the surcharge date and your policy's effective date. Exception: Major Moving Traffic Violations do not age within the first three years. Points for incidents in the five-year period immediately preceding the policy effective date can never age below zero. If incidents age to zero, no Unsafe Driver Points are assigned. TABLE OF VALUES FOR UNSAFE DRIVER POINTS The Commissioner of Insurance establishes the value of Unsafe Driver Points each year. For 19898, the following table applies: POINTS PREMIUM INCREASE 1 $ 100 2 $ 150 3 $ 250 4 $ 350 5 $ 500 6 $ 650 7 $ 750 8 $ 850 9 $ 1100 Statement of Unsafe Driver Points Your insurance company is required to send you a Statement of Unsafe Driver Points if you or any operator listed on your policy are billed Unsafe Driver Points or are denied an Excellent Driver Award 5-Year Credit. Refusal to Pay If you refuse to pay your premium increase due to the application of Unsafe Driver Points, your insurance company will cancel your policy after sending you the Notice of Cancellation required by law. Record Errors or Billing Problems If you believe a billing is erroneous, you should first contact your insurance broker or agent and/or your company. You will find it helpful if you have available your Coverage Selections Page, Statement of Unsafe Driver Points (if applicable) and copies of your billings. If you have any questions concerning an appeal of a Surcharge Notice, contact the Board of Appeal at (617) 727-7189, extension #223. If you have any questions concerning the accuracy of your record as shown on the Statement of Unsafe Driver Points, call or write the Merit Rating Board's Insurance Company Services Section, 100 Nashua Street, 6th floor, Boston, MA 02114, (619897) 727-7017. The Board will promptly investigate the matter. You must pay a billed premium while the matter is under investigation. If an error is discovered, it will be corrected and all parties will be notified in writing. Obtaining a Copy of Your Driving Record You may obtain a copy of your driving record from the Merit Rating Board. This detailed record will show all of your active surchargeable incidents on file at the Merit Rating Board. You must complete an Operator Request for Detailed Surcharge Information form and bring or mail it to the Merit Rating Board. The cost for this detailed record is $3.00, payable to the Commonwealth of Massachusetts in the form of a personal check or money order. No fee is required to inspect your computer record at the Merit Rating Board's office. However, a prior appointment must be made with the Board's Insurance Company Services Section. Information to Remember l. Unsafe Driver Points for a particular incident may not be billed on more than one policy in effect at the same time. 2. Unsafe Driver Points are assigned on a per-operator per-vehicle basis. If a policy has two surcharged operators and only one vehicle, the points of only the operator with the highest point total are computed. 3. Your driving record cannot be used to deny a credit on more than one vehicle unless you are the operator who has the least number of Unsafe Driver Points. 4. All incidents remain on your driving record for five years from the surcharge date. However, no Unsafe Driver Points are billed for an incident after the third year. The Division would like to thank the Merit Rating Board for its preparation of this section of the guide. WHAT DO I DO IF I HAVE A COMPLAINT? If you believe that your insurance company has acted improperly in issuing, renewing or cancelling your automobile policy, or has refused to pay all or part of a fair claim, or your agent or broker or company has misrepresented you, you have the right to file a complaint and seek a resolution. The problem may be due to a simple error, and may be corrected with an inquiry over the telephone. First, contact your agent or broker or the customer representative at your insurance company. Make sure you have all necessary information on hand, such as the policy or account number, a clear and concise description of the problem and any other important information. When making a complaint by telephone, keep a written record of: * The date and time of the call * The name(s) of the person(s) you speak to * What is discussed If you do not receive a prompt, satisfactory response, write a letter to the company briefly explaining your problem and what you expect done to correct it. It may be a good idea to send the letter by registered mail to guarantee that the company receives it. If you still feel you have been treated unfairly, send a complaint letter to the Division of Insurance, and we will assist you in resolving your problem. The Division of Insurance has Consumer Service offices located at: 280 Friend Street 436 Dwight Street, Rm. 438 Boston, MA 02114 Springfield, MA 01103 (617) 727-3333 (413) 784-1190 Remember when writing a letter to either your company or the Division of Insurance, you should include: * A brief description of the problem; * What resolution you believe is proper; * Your name, address, and phone number; * The agent, broker or insurance company's name; * Policy number; and Furthermore, make sure you keep a copy of the letter and any other documents you include with the letter, for your own records. Keep all letters, receipts, bills and policies together for easy reference. The Division will make every effort to ensure that your valid complaint is resolved in a satisfactory manner, by investigating the problem, clarifying misunderstandings and making sure you get clear responses to your questions. We cannot however, guarantee a favorable action on your complaint if it is not supported by facts or the law, nor can we provide legal services that may be required to settle a more complicated complaint.