John is a resident of Massachusetts and owns a motor vehicle and a corresponding Massachusetts automobile insurance policy with the statutorily-mandated coverages. Those coverages are as follows: (1) bodily injury to others (in the event that John’s negligent operation of his vehicle causes personal injury to another person); (2) personal injury protection, or “no-fault”, coverage (to pay John’s medical bills, 75% of his lost wages, and replacement services up to a total limit of $8,000); (3) uninsured motorist coverage (in the event that John or a passenger in John’s vehicle is injured as a result of the negligent operation of another vehicle by a person who is either not insured or who flees the scene of the accident); and (4) damage to someone else’s property (in the event that John’s negligent operation of his vehicle causes damage to another person’s property).
Believing he was protecting himself, John opted to buy additional coverage for items (1), (3), and (4): $100,000 per person/$300,000 per accident of bodily injury coverage (where the statutory requirement is only $20,000/$40,000); $100,000/$300,000 in uninsured coverage (where only $20,000/$40,000 is required by statute); and $50,000 in property damage coverage (where only $5,000 is required by statute). [1] John also bought underinsured coverage of $100,000 to cover himself in the event that his damages as a result of another person’s negligence exceed the coverage available from that person’s policy.
John’s elderly father lives with him and owns his own vehicle. His father also owns a separate automobile insurance policy and purchased underinsured coverage of $250,000 per person/$500,000 per accident.
John goes to a concert with some friends in a rideshare vehicle. While heading back from the show, the rideshare vehicle, which is being operated lawfully, is struck head-on by a vehicle that crossed the centerline and is being operated negligently by Fred. Fred’s vehicle is insured in the amount of $100,000 per person/$300,000 per accident.
John’s injuries and damage are extensive: over $90,000 in medical bills and over $30,000 in lost wages alone. Those along with John’s pain and suffering damages put the value of John’s damages well over $150,000. Fred’s insurer offers its full policy limit of $100,000 in return for a release of Fred. After determining that Fred has no other insurance and no real assets to speak of, John decides to accept the tender of Fred’s policy limit.
Believing he has ample coverage for this situation – where Fred is underinsured in relation to John’s damages – John makes a claim with his insurer for the $100,000 in underinsured coverage he had been paying premiums on for years. John is wrong in his belief. Because his underinsured coverage is not higher than the bodily injury coverage available from Fred’s insurer, John cannot, under Massachusetts law, stack his underinsured coverage on top of Fred’s bodily injury coverage.
What is John to do? Realizing that his father has underinsured coverage on his policy that provided $150,000 more than Fred’s policy, John, as a household member of his father, makes a claim to his father’s insurer for that available coverage. Problem solved? John is wrong again. Under Massachusetts law, in particular, the language of the standard automobile insurance policy, John’s father’s insurer “will not pay damages to or for . . . any household member [like John] who has an auto policy of his or her own.” See Massachusetts Automobile Insurance Policy (2024 Edition), Part 12. Moreover, the Supreme Judicial Court has consistently held that a person, like John, with his own Massachusetts automobile policy in effect at the time of an accident cannot look to a policy issued to a household member under which there is higher underinsured coverage than that provided in John’s own policy, and must look only to his own policy for coverage. See Depina v. Safety Ins. Co., 419 Mass. 135 (1994); Goodman v. American Casualty Ins., 419 Mass. 138 (1994); and Smart v. Safety Ins. Co., 419 Mass. 144 (1994).
The result? Because he does not have underinsured coverage higher than the negligent driver’s bodily injury coverage, John is relegated to recovering only those bodily injury limits of $100,000.
What does this mean for you when trying to protect yourself and your family in the event one or more of you is injured by someone with insufficient automobile insurance coverage? If you can afford to do so, you should purchase the highest underinsured coverage possible. Purchasing insufficient coverage can cost you significantly if you are injured due to someone else’ negligence. Therefore, read your policy language carefully.
If you have been injured in such an accident, it is important to get the help you need to navigate the claims process, including the traps for the unwary hiding in the standard automobile insurance policy. Contact our office for more information.
[1] These mandatory coverages will increase as of July 1, 2025, to $25,000/$50,000, $25,000/$50,000, and $30,000, respectively.
The information provided in this article is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy of the content, the details presented may not apply to every situation or jurisdiction. For advice specific to your individual circumstances, we recommend consulting with a qualified attorney.
