Boston Car Accident Lawyer Blog
On July 1, 2025, Massachusetts implemented the most significant changes to its mandatory automobile insurance requirements in nearly four decades. If you drive in the Commonwealth or represent clients injured in motor vehicle crashes, a knowledgeable car accident lawyer can help navigate these critical updates.
The Essential Changes in Mandatory Coverage Limits
Bodily Injury to Others (BI)
- New minimum: $25,000 per person / $50,000 per accident
- Old minimum: $20,000 per person / $40,000 per accident
Bodily Injury Caused by Uninsured Auto (UM)
- New minimum: $25,000 per person / $50,000 per accident
- Old minimum: $20,000 per person / $40,000 per accident
Damage to Someone Else’s Property (Property Damage – PD)
- New minimum: $30,000 per accident
- Old minimum: $5,000 per accident
Personal Injury Protection (PIP)
- Remains unchanged at $8,000 per person per accident
These new motor vehicle mandatory coverage limits apply to all policies issued or renewed on or after July 1, 2025. Insurance companies will automatically adjust policies to comply, but drivers should still check their policy’s Declarations page to confirm.
Why These Changes Were Made
Before this reform, Massachusetts’ minimum coverage limits had not changed since 1988. Over the years, vehicle repair costs, medical expenses, and jury verdicts have increased substantially. The old minimums often left accident victims undercompensated and exposed at-fault drivers to personal financial liability.
The most dramatic change, the jump in property damage coverage from $5,000 to $30,000, reflects the reality that even minor collisions involving newer vehicles can result in repair bills that far exceed $5,000. Similarly, the increase in bodily injury and uninsured motorist coverage is designed to provide more realistic financial protection in the event of a serious crash.
While the new limits will offer better protection, they may also result in higher premiums. Analysts estimate that drivers carrying only the minimum coverage could see average increases of roughly one-third. However, the exact change will vary depending on factors such as driving record, location, and insurer.
What Massachusetts Drivers Need to Know
- Automatic Adjustment and Verification. Most drivers won’t need to take action, as insurance companies are required to update coverage when policies renew. That said, it’s wise to verify your coverage levels to ensure compliance and to understand precisely what protections you have in place.
- Understanding the Consumer Bill of Rights. The law requires insurers to provide at least the new minimum coverages for bodily injury, uninsured motorists, and property damage. Personal Injury Protection remains at $8,000. Drivers also have the option to add coverages such as Medical Payments or Comprehensive coverage, which can further protect against out-of-pocket expenses.
- Better Protection for Everyone. The higher limits mean accident victims are more likely to receive adequate compensation for injuries or property damage. For at-fault drivers, it reduces the risk of having to pay personally for damages that exceed insurance limits.
- Minimum Still Isn’t Always Enough. Even with these increases, the minimum coverage can still fall short in the event of a significant crash. Medical costs and vehicle repair bills can easily exceed $25,000 or $50,000 in today’s economy. Many drivers will benefit from higher liability limits, such as $100,000/$300,000, or an umbrella policy for additional protection.
- Premium Increases and Shopping Around. Although premiums will likely rise for drivers, shopping around can make a significant difference. Massachusetts allows competition among insurers, so comparing rates and asking about discounts can help offset the increase.
- Impact on Personal Injury Cases. For injured parties, higher mandatory limits may increase the likelihood of a settlement that fully compensates for damages. For defendants, it means greater insurance protection, ensuring personal assets are not at risk. These changes are likely to impact settlement negotiations and litigation strategies moving forward.
Legal Compliance and Penalties
Massachusetts law requires that all drivers carry at least the minimum mandatory coverages. Driving without insurance can result in fines ranging from $500 to $5,000, possible jail time, and license suspension. In addition, uninsured drivers may be required to pay the equivalent of one year’s premium to the state’s assigned risk plan before they can regain driving privileges.
The new $30,000 property damage requirement is now written directly into state law. Any driver who fails to maintain this coverage is in violation and subject to enforcement actions.
The New Law’s Key Takeaways at a Glance
- Effective Date – July 1, 2025 (for new and renewing policies)
- Bodily Injury & Uninsured Motorist – Increased to $25k per person / $50k per accident
- Property Damage – Increased to $30k per accident
- PIP – Remains at $8k per person
- Policy Review – Always confirm limits on your declarations page
- Premium Impact – Estimated statewide average increase of ~36%
- Client Guidance – Consider higher limits or umbrella coverage
- Legal Penalties – Fines, possible jail, and license suspension for non-compliance
- Litigation Impact – Potential for higher settlement values due to increased coverage
Final Thoughts: Protecting Yourself in a New Insurance Landscape
These new requirements represent a long-overdue adjustment to match the economic realities of car accident claims. As a driver, you’ll benefit from stronger protections, but it’s important not to stop at the bare minimum. Adequate coverage can mean the difference between a fully covered claim and financial hardship.
As a personal injury law firm, we’ve seen firsthand how insufficient insurance can devastate accident victims and leave at-fault drivers facing overwhelming debt. This law is a step in the right direction, but thoughtful coverage decisions remain essential.
At Jeffrey Glassman Injury Lawyers, we help accident victims navigate insurance claims and secure the compensation they deserve. If you have questions about your coverage, your rights after a crash, or how these new laws affect your case, we’re here to help.
For more information or to discuss your case, you can reach our law firm by filling out our secure online contact form. You can also call us directly at 617-777-7777 to speak with an attorney today.