Law mandates auto insurance for every car, which might be a third party cover or a comprehensive cover. Both the schemes have different advantages. Third party insurance cover is the legal minimum, whereas a comprehensive cover to safeguard your vehicle as well as the passengers and you along with damages caused due to theft and other risks.

The basic motive behind mandating auto insurance is to guarantee bare minimum indemnification to the third parties. The Massachusetts Auto Insurance law provides that automobile owners have a compulsory insurance done, so as to protect their liabilities against third parties like pedestrians or other motor vehicles in case any personal injury is caused to them. In other words, you should guarantee compensation for your fallouts in using your vehicle.

When you have insurance, the insurance company undertakes to share your liability of making payment to third parties for losses incurred by them because of you. The limit of coverage as well as other important factors like usage etc. have to be mentioned in the agreement. The premiums are payable monthly, quarterly or even annually depending upon the scheme. The policy may also include other risks like theft, vandalism or destruction due to natural disaster.

These insurances may look like a useless expenditure but they turn out to be a boon in case of unexpected accidents and losses. However, many people still prefer the cheapest insurance schemes that provide indemnity against accidents and accidents alone, it is more preferable to opt for the comprehensive insurance policy in conformity with Massachusetts Insurance law. Law requires you take insurance on your car, the absence of which can not only result in payment of fine but also in confiscation of your license.