Effective July 1, 2025, the Commonwealth raised the mandatory minimum auto insurance coverage limits for the first time since 1988. The purpose of this change was to modernize Massachusetts’ auto insurance requirements to better protect drivers like you in an era of rising medical costs and vehicle repair expenses.
For nearly the last four decades, all registered vehicles in Massachusetts were required to carry compulsory insurance covering bodily injury to others ($20,000 per person/$40,000 per accident), property damage ($5,000), and personal injury protection (PIP) for medical expenses and lost wages up to $8,000 per person. These limits have long been criticized as inadequate. A collision today can easily exceed $5,000 in repairs, and serious injuries can often lead to tens of thousands in medical bills. New legislation signed into law last year, however, updated minimums for all policies written or renewed on or after July 1, 2025.
The key increases are as follows:
Bodily Injury Liability (“BI”): Now $25,000 per person and $50,000 per accident (up from $20,000/$40,000). If you’re found to be the at-fault party in a car collision, the Bodily Injury Liability coverage typically covers injuries you cause to other drivers or passengers, including medical treatment, lost wages, pain and suffering, and the like.
Property Damage Liability: Boosted to $30,000 (from just $5,000). This pays for repairs to another person’s vehicle or property (e.g., fence, lawn, or house) if you’re the at-fault driver.
Personal Injury Protection (PIP): Remains at $8,000 but is now more explicitly tied to these higher thresholds, ensuring no-fault coverage for your own medical needs regardless of fault. Additionally, uninsured/underinsured motorist coverage will align with these new limits, offering better protection if you’re hit by a driver with insufficient insurance.