If you’re a Massachusetts driver, prepare for some major changes to your mandated car insurance limits this summer.
On July 1, 2025, Massachusetts will enact substantial reforms to its auto insurance laws — the first significant update in over three decades. These changes aim to enhance financial protection for drivers but may also lead to increased insurance premiums.
This article breaks down the key modifications and their potential impact on Massachusetts drivers.
CarInsurance.com Insights
- Massachusetts is raising its minimum coverage limits for bodily injury and property damage liability insurance coverage to 25/50/30 and 25/50 in UM bodily injury coverage.
- These changes are effective July 1, 2025.
- Drivers with state minimum insurance coverage may see their premiums go up as a result of the increased coverage levels.
What’s changing for Massachusetts drivers?
Massachusetts’ new auto insurance law raises the minimum coverage requirements for liability from 20/40/5 to 25/50/30. The new coverage limits, which take effect July 1, 2025, are as follows:
- Bodily injury liability: $25,000 per person (previously $20,000), $50,000 per accident (previously $40,000)
- Bodily injury caused by uninsured auto: $25,000 per person (previously $20,000), $50,000 per accident (previously $40,000)
- Property damage liability: $30,000 (previously $5,000) per accident
These increased limits are meant to keep up with medical and repair costs, which have significantly increased since the law was last changed in 1988.
The new limits offer better protection than previous limits, but drivers with state minimum coverage can expect their premiums to increase to account for this increased protection.
“While every policyholder’s experience will be different, policyholders who have limits at the current minimum amount should be aware they will generally see an increase to their premium as they are now required to purchase increased coverage limits,” said Michele J. Campbell, director of communications for the Massachusetts Office of Consumer Affairs and Business Regulation.
Read more: How much is car insurance in Massachusetts?
What is not changing in Massachusetts?
Some mandatory coverages will remain the same after the Massachusetts House Bill H.5111 takes effect in July. The following coverage limits will not be changing:
- Uninsured motorist bodily injury coverage (UM): $20,000 per person/$40,000 per accident. This coverage protects you and your passengers if you’re injured in an accident caused by an uninsured driver.
- Personal injury protection (PIP): Remains at $8,000 per person, per accident. PIP covers medical bills and 75% of lost wages, up to the coverage amount, no matter who is at fault in the accident. It covers you as the driver and anyone injured in the accident, including passengers or pedestrians. PIP covers medical expenses, up to 75% of lost wages and replacement services up to $8,000.
Impact on insurance premiums
Because the law increases mandatory coverage, drivers with Massachusetts state minimum coverage can expect an annual premium increase. In 2025, before the changes to the law, the average price of state minimum car insurance in Massachusetts was $511.
The changes are the first since 1988, when the average price of a new car was $13,262 (compared to $49,740 in 2025). Even with the changes, the new requirements may still be insufficient to keep up with inflation.
The new minimums will be applied on a rolling basis as policies renew, so you may not see a change to your premiums until you renew or request a quote after July 1. Those who have limits at the current state minimum limits will see automatic increases to those limits to the new state minimums when they renew their policy.
“The Massachusetts auto insurance market is very competitive, and consumers should be reminded that shopping around is their best option for finding the coverage they need at a price that works for them,” Campbell said. “Maintaining a clean driving record is also an important factor in keeping policy premiums lower.”
How does windshield replacement work in Mass? Find out.
Steps for Massachusetts drivers
Choosing only the state minimum car insurance may leave Massachusetts drivers underinsured.
As a Massachusetts policyholder, you should review your coverage to ensure it suits your needs. You should also talk with your insurance agent to understand how these changes may affect your premiums, as insurers use multiple rating factors to set car insurance rates.
Insurers aren’t required to notify customers of the coming policy changes, so don’t let it take you by surprise. You might want to shop around to compare quotes if you’re looking for savings.
“The Division of Insurance’s Consumer Service Unit stands ready to be a resource for Massachusetts consumers with questions about the new limits,” Campbell said.
The state’s Basics of Auto Insurance guide can help if drivers need it.
Final thoughts
Massachusetts’s upcoming auto insurance law changes are a significant shift aimed at providing better financial protection for drivers. While you may see your premium increase, you’ll also have enhanced coverage in the event of an accident. Staying informed and proactive about your coverage will help you navigate these changes effectively.
Resources & Methodology
Sources
- Chicago Tribune. “U.S. car prices take the high road.” Accessed June 2025.
- Kelley Blue Book. “Average New Car Price Flirting With Record.” Accessed June 2025.
- S&P Journal of Commerce. “Auto Reform Measure Becomes Law in Mass.” Accessed June 2025.
- Mass.gov.”Basics of Auto Insurance” Accessed June 2025.
Methodology
CarInsurance.com editors collected rates from Quadrant Information Services for a 40-year-old driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles. The hypothetical driver has a 12-mile commute and 10,000 annual mileage. We analyzed 53,409,632 records, 34,588 ZIP codes and 170 insurance companies nationwide.
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs