Cape Cod Chamber of Commerce - eCapeChamber

Automobile

To ease the cost to consumers, Commonwealth law requires that insurance companies extend credits to drivers with good safety records, by following the Safe Driver Insurance Plan (SDIP) as fixed by the Insurance Division. The intent of the SDIP is to reward with credits drivers who have avoided accidents and traffic violations, and to increase the share of insurance costs to high-risk drivers by adding surcharges to their auto insurance premiums.

According to the 35-step plan, auto operators with consistently safe driving records continue to move down the steps to receive larger credits. Newcomers to Massachusetts start at Step 15 of the SDIP, where no credit or surcharge applies.  However, they may submit past driving records for review by the Merit Board of the Insurance Division in order to earn credits.  Additional discounts on auto insurance are offered to auto club members by some insurance providers.

In the case of automobile insurance, four types of coverage are compulsory at certain minimum levels; they are:

• Bodily injury to others
• Personal injury protection
• Bodily injury caused by an uninsured auto
• Damage to someone else’s property