What is an At-fault accident surcharge?

LEXINGTON, Mass. - Nov. 9, 2015 - PRLog -- You're driving along the Masspike when you start sliding and realize you've hit black ice.  You desperately slam on your brakes, but it's too late and you end up smacking the car in front of you.  You both get out and survey the damage. Both bumpers will have to be replaced and there are some major scratches. You exchange insurance information and drive off.  A few weeks later, you receive a letter from your insurance company.  You open it up to read that you have been given an At-fault accident surcharge.  You cry out "but I thought Massachusetts is a no-fault state!"  While it is true that Massachusetts is a No-Fault state, that's not a blanket term that applies to all aspects of an accident.  In Massachusetts, no fault doesn't apply to this situation.

It's important to understand what an at-fault accident is.  For an accident to be considered at-fault and to be subject to a surcharge, the following must apply:

-The involved operator is more than 50% at fault.  This will be determined by the Standards of Fault.

-The vehicle is privately owned.

-The accident involves a claim payment of more than $1000.  The deductible is not included in this figure.

-The claim payment is for damage to some else's property or collision coverage for a vehicle subject to the Safe Driver's Insurance Plan.

Your insurance company will notify you and the Merit Rating Board (MRB) if you are determined to be more than 50 percent at fault for causing an accident. This would be added to your driving record and the Merit Rating plan used by your insurance company will determine the effect on your premiums.

Recently, the Massachusetts government enacted a change in the threshold amounts for surchargeable accidents.  Prior to July 2015, it was $500 for a minor accident and over a $2000 for a major accident.  Now a minor At-Fault accident occurs when the damage is between $1000 and $5000.  Anything over $5000 is considered major.  The new threshold should greatly benefit drivers who could have been getting surcharges for simple fender-benders and other minor incidents.

These costs are calculated irrespectively of the deductible.  If you are determined to be more than 50% at fault for an accident, your insurance company will send a notice to you within 20 working days from the time the claim was paid.  However, be aware that the surcharge date is different from the date the accident occurred. The surcharge date is the date of notice entered by the insurer. They will use this date to start the clock for the five policy term period that incidents are kept on your driving record. Also, if you are the policy holder but were not driving the vehicle at the time, both you and the operator will receive the notice.  The Merit Rating Board will also receive a notice as well and will add the accident to your driving record as a surchargeable incident, however, the surcharge will only follow the driver.

If you do believe that you were not more than 50% responsible, you may appeal to the Division of Insurance Board of Appeal.  However it will cost you $50 to file.  You must make sure that you file within 30 days of receiving your notice or you could lose your right to appeal.  On the back of your notice is the appeal form and directions.  Once the board receives it, they will schedule a hearing. The Board will inform you of their decision by mail.  The Board will also notify your insurance company and if they find in your favor will take the charge off of your driving record.

There are also other factors that may work in your favor.  For example; weather conditions such as black ice, solar glare, and wet leaves may all be considered when making a determination as to whether you were more than 50% at fault.

If you ever find yourself in this position, your insurance agent should be able to help you understand how it may effect you and help you navigate the surcharge process.