Massachusetts law requires that all cars have insurance on them with the minimum limits of $20,000/$40,000 for bodily injury to others and $5000 for property damage. Uninsured motorist (bodily injury caused by an uninsured motorist) is also required with minimum limits of $20,000/$40,000. The forth part of MA compulsory auto insurance is personal injury protection (PIP) which is also known as no-fault.

Compulsory motor vehicle liability insurance is discussed in chapter 90: Section 34J of the MA legislature laws. Here it states that being without insurance on a motor vehicle is punished by a fine not less than $500 nor more than $5000 or by imprisonment for not more than 1 year or both the fine and jail time.

The law goes on to say that any person convicted of being uninsured shall be liable for the amount greater of $500 or 1 year's premium for compulsory motor vehicle insurance for the highest rated territory and class or risk in effect at the time of the commission of the offense.

A person cited for driving without insurance may also have their driver's license suspended for 60 days by the Registry of Motor Vehicles and likely their registration and tags to the vehicle suspended as well.

When you register your vehicle you must go to a licensed Massachusetts insurance agent to obtain an active insurance policy and have the agent stamp and sign the RMV-1 application and then take this to the MA RMV. So insurance needs to be in place during your registration period.

In order to not receive penalties for being an uninsured motorist you would need to turn in your registration and plates to the RMV. If your car is inoperable or not being used then you may want to contact the RMV to see if there is a way to take insurance off the vehicle without being required to turn in your registration.

If you are now looking for MA auto insurance due to your old policy being canceled or you letting it lapse be aware that beginning April 1, 2008, car insurance companies will begin setting their own rates. This means that if you request quotes for the same coverage from several different companies, you will receive different premium quotes from each of them. Even though companies will file their own rates, the Commissioner of Insurance still must approve those rates.

For the past 30 years, all rates for car insurance were set by the Commissioner of Insurance under what was known as the “fixed-and-established” system. Under this system, if you requested a premium quote for the same coverage from different companies, each of those companies would give you the same price for that coverage, unless you were eligible for a group discount.

This is why now more than ever in Massachusetts it is important to get multiple car insurance prices. Competition is designed to encourage insurance companies to offer their lowest possible premium to each driver.

The Division of Insurance in MA notes that although the majority of Massachusetts policyholders will probably benefit from reduced rates under the new system, the amount that you pay will depend on your individual risk factors, such as your driving record, the territory in which you live, and other rating factors approved by the Commissioner of Insurance.