Healey says first updates in 30 years will provide “meaningful coverage”
JUNE 18, 2025…..Massachusetts drivers will be subject to higher minimum coverage limits for bodily injury and property damage starting July 1, a result of the only tweak that the governor made to last year’s sweeping economic development law.
Beginning next month and then on a rolling basis as policies renew, the minimum coverage limit for damage to someone else’s property increases from from $5,000 to $30,000, and the minimums for both “bodily injury to others” and “bodily injury caused by uninsured auto” climb from $20,000 per person and $40,000 per incident to $25,000 per person and $50,000 per incident. The fourth mandatory coverage type, personal injury protection, will keep its $8,000 per person minimum.
“The current amounts have not been updated in over 30 years and the proposed increases would provide meaningful coverage for those who experience personal injury or property damage due to a motor vehicle accident,” Gov. Maura Healey said when she gave the increases a green light last fall.
State officials said most drivers in Massachusetts already carry coverage equal to or greater than the new minimums, but did not provide a count or estimate of the number of policies that do not already meet the new minimums.
The Division of Insurance said every policyholder’s experience will be different, but that people who have coverage at the current minimums will generally see an increase to their premium since they will be required to purchase increased coverage limits. Those with coverage at the current minimums will be automatically increased by their producer or insurer upon their policy’s renewal, DOI said.
When Healey signed a $4 billion economic development package in November, she approved every line of the 319-page bill but sent back a section dealing with motor vehicle liability insurance with a proposed amendment. The amendment, which was adopted by lawmakers and signed into law by Healey in December, merely delayed the new insurance minimums to July 1, 2025.
“I support these limit increases, but I also recognize that the language as currently drafted would become effective immediately upon my signature, providing insurance companies inadequate time for implementation. Insurers must update current policies and submit new forms and rates to the Commissioner of Insurance for review and approval before implementing these changes,” Healey wrote when she sent the amendment back last fall. “Based on feedback from industry stakeholders, pushing out the effective date to July 1, 2025, will ensure that these changes take place in an orderly way.”
The DOI issued guidance in January to detail for carriers the process to submit required compliance filings, and said its Consumer Service Unit is prepared to serve as a resource for consumers with questions about the new limits.
A car must be insured to be registered in Massachusetts. In 2008, Massachusetts officials deregulated the automotive insurance market from a more heavily regulated “fixed and established system” to a “managed competition” framework to invite more options for consumers.
DOI officials said the state’s auto insurance marketplace is very competitive, and reminded consumers that shopping around is the best option for finding coverage at a good price. Maintaining a clean driving record is also an important factor in keeping policy premiums lower, the DOI said.
