Gilbert Experts Answer These Questions:
Gilbert Experts Answer These Questions:
If you’re a current Massachusetts car insurance policyholder, you’re probably aware that our state, like many others across the country, requires vehicle owners to carry minimum levels of coverage in the following areas:
- Bodily Injury to Others
- Bodily Injury Caused by Uninsured Auto
- Damage to Someone Else’s Property
- Uninsured/Underinsured Motorists
- Personal Injury Protection (PIP)
What you might not be aware of is how long it’s been since Massachusetts has adjusted the car insurance minimum requirements for these coverage areas. The last time these limits were modified was nearly 40 years ago! So, it might not surprise you to learn these limits have become outdated. Not only are they notably lower than those mandated in many other states, but they have not kept up with inflation and the soaring costs related to buying a new vehicle, getting medical care, and having a car repaired.
Thus, it is really big news that our Bay State has recently passed Act H.5111, legislation that increases two long-standing car insurance minimum requirements—the bodily injury coverage limits and the property damage coverage limits.
We know our clients and community probably have many questions about the new law, including how and why the limits have changed, when the law takes effect, and how the updated requirements may impact them. The Gilbert team is happy to provide answers to these questions and more.
How have the auto insurance bodily injury and property damage limits changed?
The following chart shows what Massachusetts’s auto insurance limits are now and what they will be after the new law takes effect. As you can see, some of the coverage requirements will increase, while some will remain the same.
| Coverage Area | Previous Limits | New Limits |
| Bodily Injury to Others | $20,000 per person / $40,000 per accident | $25,000 per person / $45,000 per accident |
| Bodily Injury Caused by Uninsured Auto | $20,000 per person / $40,000 per accident | $25,000 per person / $45,000 per accident |
| Damage to Someone Else’s Property | $5,000 per accident | $30,000 per accident |
| Uninsured/Underinsured Motorists | $20,000 per person / $40,000 per accident | Same |
| Personal Injury Protection (PIP) | $8,000 per person | Same |
What types of vehicles do these changes apply to?
The updated car insurance limits apply to both private passenger vehicles and commercial automobiles.
When do these new minimum car insurance requirements take effect?
The increased limits apply to any policy written or renewing on or after July 1, 2025.
Insurance companies are responsible for making sure their forms are updated to reflect the updated minimum requirements. However, once the law goes into effect, it’s smart for vehicle owners to double-check the declaration page of a new or renewing car insurance policy for compliance with the revised limits, particularly if they get their insurance directly from a national carrier rather than working with a local insurance agency.
Why is Massachusetts increasing its minimum auto insurance limits?
The main goal of this legislation is to minimize the risk that a driver who gets in an at-fault accident will have inadequate coverage to protect them from the financial repercussions related to any injuries or property damage they cause.
Back in 1988, when the previous limits were set, the costs related to an accident, such as medical bills and car repairs, were significantly lower. Today, with these types of expenses skyrocketing, it has become more common that bodily injury and property damages resulting from a serious crash exceed the Massachusetts minimium policy limits, which could leave insureds paying for a significant gap in coverage out of pocket.
The new, higher limits provide better protection against rising vehicle repair and medical costs and potentially mean that more claims may be fully covered by insurance and the financial strain on the at-fault driver in an accident will be reduced.
Will these changes affect car insurance premiums?
Vehicle owners who have only been carrying the minimum required coverage limits are likely to see an increase in the cost of their policy at renewal time. These drivers could benefit from proactively
reaching out to their local insurance professional, who may be able to help them budget for any potential increases. In addition, an agent may be able to uncover eligible discounts and other ways to save money on their car insurance policy.
Are these new limits enough car insurance coverage for every driver?
The state’s mandatory car insurance coverage limits, even with the latest increases, are still just the minimum requirements and may not provide adequate financial protection for all Massachusetts drivers and their vehicles, so we encourage you to contact a Gilbert insurance professional for assistance with your distinct car insurance needs.
Our team can answer any further questions you have about the new state minimum car insurance limits and provide guidance on selecting the appropriate car insurance amounts and optional car insurance coverages that will help protect your personal and business vehicles and the people driving them.
