BOSTON, MA — At its meeting on September 23, 2025, the Commonwealth Automobile Reinsurers (CAR) Governing Committee approved modifications to the Assigned Risk Producer Procedures Manual, regarding the implementation of a new $175,000 maximum physical damage limit for vehicles in the Massachusetts Automobile Insurance Plan (MAIP). The new cap will take effect on January 1, 2026, for all applicable policies.
This recent decision finalizes the rules and outlines the specific procedural changes required of insurance producers.
New Producer Responsibilities
As detailed in CAR Bulletin No. 1201, issued September 26, 2025, the implementation of this limit introduces new requirements for Assigned Risk Producers:
Producers must inform the risk of the $175,000 maximum physical damage limit of loss when applicable.
For financed vehicles, the ACORD Insurance Binder must specify that the coverage limit shall not exceed $175,000.
CAR has made the amended Assigned Risk Producers Procedures Manual available on its website for review at https://www.commauto.com/maip/manuals/arpmanual.asp.
Background and Key Provisions of the Limit
The committee’s recent approval follows an earlier announcement in August, which provided the underlying details of the new limit. According to CAR Bulletin No. 1198, the key provisions are as follows:
Scope of Application: The $175,000 maximum applies to all vehicles, including miscellaneous types such as Motorcycles, Motorhomes, and Trailers. The only exceptions are Antique Automobiles and Motorcycles, which are ineligible for placement in the MAIP.
Customized Vehicles: Under Rule 47, the base value must include the value of customized equipment on vans and pickups. If this pushes the updated Vehicle Rating Group (VRG) to 50, the $175,000 limit will apply.
Electronic Equipment: Where Excess Electronic Equipment Coverage exists, the maximum payable loss for a vehicle cannot exceed the $175,000 threshold, regardless of whether the loss applies to the vehicle, the equipment, or a combination of both. The same maximum also applies in cases of Stated Amount or Agreed Amount coverage.
Immediate Impact: The Vehicles Affected?
This change will initially affect a specific segment of high-end and luxury vehicles whose base prices already exceed the new threshold. Examples of some 2024 and 2025 model-year vehicles falling into this category are:
- Mercedes-AMG GT 63: Base Price: $177,050
- Chevrolet Corvette ZR1 (3LZ Trim): Base Price: $185,995
- Porsche 911 Turbo: Base Price: $197,200
- Range Rover SV: Base Price: $214,125
- Ferrari 296 GTB Coupe: Base Price: $342,205
- Lamborghini Revuelto Coupe: Base Price: $608,358
Future Considerations: The Effect of Tariffs
The number of vehicles affected by this limit will likely grow. In early 2025, the U.S. government enacted a 25% tariff on many imported vehicles and auto parts. These tariffs could increase the prices of many high-end vehicles, pushing models currently priced below $175,000 into the higher bracket. High-performance coupes and sedans from European manufacturers like Porsche and Mercedes-AMG are strong candidates to see their prices surpass the new limit.
