ANDREY DENISYUK/Getty Images

Since 1988, Massachusetts drivers have carried the same minimum insurance limits, even as the cost of repairs and vehicles have steadily increased. That’s about to change.

Thanks to an update to the state’s minimum coverage requirements, some drivers will automatically have higher insurance limits, and possibly a higher rate, as of July 1, 2025. But even though the effective date is almost here, many people still aren’t aware of the change. “I didn’t receive anything from my insurance company about this,” says Massachusetts resident Kristen Corey. “To be honest, until now I was clueless about it!”

New minimum car insurance requirements in Massachusetts

In December 2024, Governor Maura Healey signed House Bill H.5111 into law, officially raising Massachusetts’ minimum car insurance limits. This change goes into effect on July 1, 2025, for all new auto insurance policies and for any policy renewals on or after that date.

Minimum coverage laws have to keep up with rising costs

Minimum insurance limits are intended to reflect the actual cost of being involved in a crash. And lately, those costs have soared. Massachusetts joins four other states in increasing minimum car insurance requirements this year in response to the ongoing effects of inflation on car insurance.

While bodily injury and uninsured motorist coverage will see a slight bump in limits, the biggest jump is in property damage liability, increasing from $5,000 to $30,000 per accident. That sixfold increase reflects how dramatically vehicle repair and replacement costs have surged in recent years.

According to data from the May 2025 Consumer Price Index (CPI) report, the price of motor vehicle repairs is 56 percent higher than pre-pandemic (January 2020) levels. The cost of new cars has risen by almost 20 percent, with average new car prices hovering just below $50,000. Combined with the 25 percent import tariff on imported private passenger vehicles and car parts, Massachusetts’ new PD threshold helps reduce the chance that drivers may be drastically underinsured in a severe car accident.

What these requirements mean for you and your budget

Massachusetts drivers seem to have mixed feelings about the new coverage limits. Corey, who currently carries minimum coverage limits on her policy, isn’t thrilled with the change, even though it will give her more financial protection. “I don’t love the increases,” she says, “especially the property damage coverage, which is a ridiculous 500 percent increase.”

I don’t know if it’s a popular opinion, but it seems like if someone only wants very limited coverage, or even to waive coverage altogether, they’re doing so with the understanding that they will still be responsible for any expenses out-of-pocket.

— Kristen Corey
Massachusetts resident

Drivers carrying state minimum coverage will be impacted the most by this update, and understandably, they may feel anxious about what their new insurance bill will look like. “While every policyholder’s experience will be different,” says Michele Campbell, the director of communications for the Offices of Consumer Affairs and Business Regulation, “policyholders who have limits at the current amount should be aware they will generally see an increase to their premium as they are now required to purchase increased coverage limits.”

As of June 2025, the average cost of car insurance in Massachusetts is $524 per year with the current minimum coverage level. Bankrate’s analysis of rate data from Quadrant Information Services shows that average premiums will increase to $711 per year — a nearly 36 percent jump — with the new limits in place. For comparison, Boston drivers will see an average premium jump of 33 percent — from $584 to $776.

Romy Ribitzky, who leases a car in Massachusetts, feels differently than Corey about the coverage limit change. “I didn’t receive communication from my carrier,” says Ribitzky, “however, when I leased my car, I already opted for the max coverage.” Having been in a car accident before, she says she always plays it safe and opts for more insurance rather than the minimum.

I appreciate the state increasing the coverage. The streets in Boston, especially where I live, are dangerous, and drivers aren’t always defensive when they’re on the road. Add to that inclement weather, and the chances for accidents are high.

— Romy Ribitzky
Massachusetts resident and Bankrate vice president

If your budget doesn’t have room for the potential rate increase, don’t panic. There are several steps you can take that may help keep the increase to a minimum. Start by asking your insurer about any insurance discounts you may not be getting yet, such as bundling home and auto or enrolling in paperless billing. You can also consider raising your deductible or removing unnecessary optional coverage types.

Comparing rates among several carriers is still a viable way to find savings opportunities. “The Massachusetts auto insurance market is very competitive,” says Campbell, “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. Maintaining a clean driving record is also an important factor in keeping policy premiums lower.”