Auto Insurance Surcharge Thresholds Double!

Great news everyone!   As part of the budget just signed by Governor Baker the thresholds used to determine surchargeable automobile accidents have been raised to $1,000 for minor accidents and $5,000 for major accidents.  Prior to this change the thresholds had been at $500 and $2,500 respectively for decades.

The change is retroactive back to the beginning of the month.  As of July 1, 2015 drivers will not be surcharged unless the insurance company pays out at least $1,000 in damages.  As important, raising the threshold for a major accident to $5,000 makes sense giving today's repair costs.  We all know it does not take much of an accident to result in $3,000 in damages and a major accident surcharge.  This is a job well done by the Legislature and Governor to bring damage levels up closer to 2015 realities.

If you have any questions about how surcharges work or about auto insurance in general please give us a call at 781-598-5000.  We'd be glad to hear from you!