Andrey Denisyuk/Getty Images
Since 1988, drivers in Massachusetts have the same minimum insurance limits despite steadily increasing costs for repairs and vehicles. It’s about to change.
Thanks to the latest updates on the state’s minimum coverage requirements, some drivers will automatically have higher insurance restrictions and possibly higher rates as of July 1, 2025. But while the effective date is pretty much here, many people are still not aware of the change. “We didn’t receive anything about this from the insurance company,” says Massachusetts resident Kristen Corey. “To be honest, up until now I’ve been ignorant about it!”
Massachusetts’ New Minimum Auto Insurance Requirements
In December 2024, Governor Maurahealy signed the law at House Building H.5111, officially raising the minimum car insurance limit for Massachusetts. This change will take effect on July 1, 2025 for all new car insurance policies and insurance renewals after that date.
| Coverage Type | New Minimum Limit | Old minimum limit |
|---|---|---|
| Physical Disability Responsibility (BI) | $25,000 per person/$50,000 per accident | $20,000 per person/$40,000 per accident |
| Liability for property damages (PD) | $30,000 per accident | $5,000 per accident |
| Uninsured driver responsibility (um) | $25,000 per person/$50,000 per accident | $20,000 per person/$40,000 per accident |
| Personal Injury Protection (PIP) | $8,000 per person | $8,000 per person |
Minimum compensation laws need to keep up with rising costs
Minimum insurance limits are intended to reflect the actual costs involved in a crash. And these costs have been rising recently. Massachusetts will be participating Four other states Increased minimum car insurance requirements this year to meet the ongoing impact of Auto insurance inflation.
While physical damage and uninsured driver coverage are seen in slight conflicts with the limit, the biggest jump is property damage liability, increasing from $5,000 to $30,000 per accident. This six-fold increase reflects how dramatically the cost of repairs and replacements for vehicles has risen in recent years.
According to data from May 2025 Consumer Price Index (CPI) ReportT, car repair prices are 56% higher than the pre-pandemic (January 2020) levels. New cars cost up almost 20%, on average New car prices Hovering for under $50,000. Combine with 25% import duties With imported private passenger cars and auto parts, the new PD threshold in Massachusetts can reduce the likelihood that drivers are dramatically insured in severe car accidents.
What these requirements mean for you and your budget
Massachusetts drivers appear to have mixed feelings about the new coverage restrictions. Corey, who currently has minimal coverage restrictions on her policy, is not excited by the change despite her giving more financial protection. “I don’t love the increase,” she says.
I’m not sure if that’s a general opinion, but it appears they do so with the understanding that if someone wants very limited compensation, or even abandoning coverage entirely, they still take responsibility for out-of-pocket costs.
– Kristen Corey
Massachusetts Residents
Drivers carrying the state’s minimum compensation will be most affected by this update. Naturally, they may be worried about what the new premiums will look like. “Although all policyholders have different experiences, says Michele Campbell, communications director for the office of Consumer Affairs and Business Regulation.
As of June 2025, the average cost of car insurance in Massachusetts is $524 per year, with current minimum coverage levels. Bankrate’s analysis of Quadrant Information Services rate data shows that the average premium has increased to $711 a year (a nearly 36% jump), with new limits in place. For comparison, Boston drivers get an average premium jump of 33%, ranging from $584 to $776.
Romy Livitsky, who leassssssss, feels different from Corey about the change in coverage limits. “I didn’t get any communication from my career,” says Ribitzky. She says she’s always played it safely and opted for more insurance rather than the lowest since she’s had a car accident before.
I am grateful that the state is increasing coverage. The streets in Boston, especially where I live, are dangerous, and drivers are not necessarily defensive when they are on the road. In addition to the bad weather, there is a higher chance of an accident.
-Roma Ribitzky
Massachusetts Residents and Bankrate Vice President
If your budget doesn’t have room for potential fee increases, don’t panic. There are several steps you can take, and it may help to minimize. Start by asking your insurance company about insurance discounts you may not have yet received, such as home constraints or signing up for a car or paperless claim. You can also consider removing deductible deductions and optional coverage types that are not needed.
Comparing rates between several carriers is a viable way to find saving opportunities. “The Massachusetts auto insurance market is very competitive,” Campbell says. “And remember that shopping is the best option for them to find the coverage they need for them at the price they need. Maintaining a clean driving record is also a key factor in keeping policy premiums low.”
