Starting July 1, 2025, Massachusetts drivers will need higher car insurance coverage – the first change in 35 years. The new rules affect both injury and property protection for all drivers in the state.
Under the new rules, drivers must have $25,000 in bodily injury coverage per person, up from $20,000, while accident coverage increases to $50,000 from $40,000. The biggest change? Property damage protection jumps from $5,000 to $30,000 for each accident.
Gov. Maura Healey approved these changes through an economic bill she signed last December. With repair costs and medical bills climbing since 1988, the state needed to make changes.
The state set uninsured auto coverage to match injury limits: $25,000 per person, $50,000 per accident. Personal Injury Protection remains at $8,000 for each person.
Drivers with minimum coverage will see higher costs. Wallet Hub expects a 36% increase for basic policies. Bankrate estimates yearly basic liability costs will hit $711 after the change.
Massachusetts drivers now pay about $759 each year for minimum coverage – 13% less than the national average. Before the new rules start, full coverage costs around $2,620 per year.
The changes will happen automatically for policies starting or renewing after July 1. Most drivers won’t need to do anything unless they want more coverage.
While officials haven’t released exact numbers on affected drivers, most Massachusetts residents already have insurance above these new minimum requirements.
Massachusetts joins four other states this year in raising insurance requirements. Even with the increases, costs should stay in line with nearby states that made similar changes.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.