Massachusetts Gov. Maura Healey has signed legislation to increase the state’s minimum mandatory auto insurance coverage limits, a move set to take effect for policies issued or renewed on or after July 1.

The updated requirements will raise bodily injury liability coverage from $20,000 per person/$40,000 per accident to $25,000 per person/$50,000 per accident. Property damage coverage will see a substantial increase from $5,000 to $30,000.

Other mandatory coverages, including uninsured motorist bodily injury coverage at $20,000 per person/$40,000 per accident and personal injury protection (PIP) at $8,000 per person, per accident, will remain unchanged under the new legislation.

According to MarketWatch, the average cost of auto insurance in Massachusetts has seen modest changes over recent years. While the average annual cost of minimum liability coverage in the state remained stable at $759 — 13% below the national average of $869 — the cost of full coverage has increased by 8% since 2023, now averaging $2,620 per year. This figure is 2% lower than the national average of $2,681.

Industry analysts expect the increased minimum coverage requirements to impact insurance premiums, particularly for drivers who currently carry the state minimum coverage. The increase in property damage limits, in particular, could lead to noticeable changes in premium costs.

With the new limits taking effect in mid-2025, policyholders are encouraged to review their coverage levels and budget for potential premium adjustments. Insurance agents and carriers are expected to provide updated policy options as the implementation date approaches.