What Drivers Need to Know About Changes in Massachusetts Minimum Auto Insurance Coverage

After nearly four decades without change, Massachusetts is finally increasing its mandatory minimum auto insurance coverage limits. These new minimums—effective July 1, 2025—represent a step in the right direction.  After all, minimum coverage limits are designed to help protect drivers from costly lawsuits and the potential of a financial future in ruins.  As trusted insurance advisors since 1902, we want to explain what’s changing, and more important, why purchasing limits beyond the new minimums simply makes sense.

What’s Changing

Governor Maura Healey recently signed legislation updating the state’s mandatory minimum auto insurance requirements. The new law increases coverage in three critical areas,

• Bodily Injury to Others (Part 1);
• Bodily Injury Caused by an Uninsured Auto (Part 3); and
• Damage To Someone Else’s Property (Part 4).

The most substantial increase is Damage To Someone Else’s Property coverage.  It jumps from $5,000 to $30,000, an acknowledgment of how drastically repair costs have increased in Massachusetts since the 1980s when the current limits were originally set.

Why These New Minimums May Not Be Sufficient for Most Drivers

Mandatory minimums are the absolute minimum required by law, not what’s recommended for adequate protection.

Consider these realities:

• Medical costs have skyrocketed since the 1980s. Today, a serious injury can easily exceed $25,000 in medical bills.
• Modern vehicles are expensive to repair or replace. With the average new car costing more than $40,000, the new $30,000 property damage minimum is likely inadequate after a serious collision.
• Legal settlements frequently exceed minimum coverage, putting personal assets at risk if liability for damages is assigned and the award exceeds policy limits.

Who Should Consider Higher Limits?

In our professional opinion, higher coverage limits make sense for most of our clients. We typically recommend at least the following limits with respect to the above three compulsory coverages.

• Bodily Injury To Others: $250,000 per person, $500,000 per accident
• Bodily Injury Caused By An Uninsured Motorist: $250,000 per person, $500,000 per accident
• Damage To Someone Else’s Property: $250,000 per accident

In addition, there are 8 optional coverages under the Massachusetts Auto Insurance Policy, and we recommend that our clients buy most of them with appropriate coverage limits.

Smart Ways to Lower Premium Without Sacrificing Coverage

To lower insurance premium cost while maintaining adequate coverage, consider

• Bundling policies – Combining auto and home insurance often results in significant discounts;
• Maintaining a clean driving record – Safe driving is rewarded with lower rates;
• Asking about discounts for anti-theft devices, defensive driving courses, good student discounts, or low annual mileage;
• Opting to receive all paperwork electronically;
• Paying the full annual premium in full up front – assuming the carrier provides a discount for doing so;
• Buying a car that is more cost effective to insure – not all cars cost the same to insure, so check first before buying;
• A higher deductible on comprehensive and collision coverage if you have an emergency fund; and
• Asking about pay-as-you-drive options if you are a safe driver or drive infrequently.

The BY&D Difference: Personalized Protection

At Benson, Young & Downs, we understand that each client’s situation is unique. That’s why we don’t offer one-size-fits-all solutions. Instead, we take the time to understand your specific circumstances and recommend coverage that truly protects what matters most to you.

We recognize that for some clients with very limited financial means, minimum coverage may be the only feasible option. But for the vast majority of drivers, the peace of mind that comes with appropriate coverage limits is well worth the additional premium.

We invite you to schedule a coverage review with our team. We’ll help you understand your policy and select the appropriate coverage limits for your unique needs.

Contact our office today at 508-487-0500 or insure@byandd.com to schedule your personalized insurance review.

Benson, Young & Downs Insurance Agency has been protecting Massachusetts families, businesses, municipalities, and non-profits since 1902. We’re not just your insurance agency—we’re your neighbors.