The parts of a personal auto policy are covered in the national personal auto guide: liability, medical payments, uninsured motorists, physical damage, and duties after a loss. Massachusetts builds its auto system differently from most states, with four compulsory coverages, no-fault PIP, a $2,000 tort threshold, the Safe Driver Insurance Plan, and strict cancellation rules. The minimum liability limits rose on July 1, 2025. This guide covers the Massachusetts rules.

Compulsory coverage and limits

A vehicle can't be registered without a certificate showing compulsory insurance (M.G.L. c.90 s.1A). The four compulsory coverages are:

The changes came from St. 2024, c.275.

• Optional bodily injury to others adds limits above the compulsory minimums.
• The compulsory coverage may not contain exclusions for specified accidents or injuries (c.175 s.113A).
• A minor 16 or older may contract for auto liability insurance (s.113K).
• Driving uninsured is punishable by a fine of $500 to $5,000, up to one year in jail, or both (c.90 s.34J).

Personal injury protection (c.90 ss.34A, 34M)

PIP pays regardless of fault, up to $8,000 per person. It covers:

• reasonable medical expenses incurred within two years of the accident
• lost wages, limited to 75% of the average weekly wage, counting any wage continuation

Who's covered. PIP extends to pedestrians struck by the insured vehicle. Anyone entitled to workers' compensation is excluded.

Claims and payment:

• Claims are filed as soon as practicable and within two years of the accident.
• After a physician's notice of disability, the insurer starts medical payments, or explains in writing why it isn't paying, within 10 days.
• If benefits are unpaid more than 30 days, the claimant may sue in contract and recover attorney fees.

Deductibles. The policyholder may choose a PIP deductible, from $100 up to $8,000, applying to the policyholder alone or to the household.

Subrogation. The paying insurer may recover from a liable, non-exempt party.

Tort exemption. PIP replaces tort damages to the extent of the benefits. The exemption doesn't apply to accidents outside Massachusetts.

The tort threshold (c.231 s.6D)

An injured person may recover damages for pain and suffering only if one of these applies:

• reasonable medical expenses are more than $2,000
• the injury involves death, loss of a body member, permanent and serious disfigurement, specified loss of sight or hearing, or a fracture

Uninsured motorist (c.175 s.113L)

• Every policy includes UM with limits at least equal to the compulsory BI limits. It also covers hit-and-run drivers.
• An insured vehicle whose insurer is insolvent counts as uninsured.
• Underinsured motorist coverage responds when the at-fault driver's limits are too low.
• No stacking. Limits for two or more vehicles or policies aren't added together.
• A named insured hurt in her own insured car recovers UM only from the policy on that car.

Physical damage options (c.90 s.34O; c.175 s.113O)

Collision:

• Pays without regard to fault, up to actual cash value, less a $500 deductible.
• Insurers must offer an option that lowers the deductible to no less than $300, and a deductible waiver in listed cases when the insured is 50% or less at fault.
• After a major at-fault accident, the insurer may require the $500 deductible for up to three policy years.

Limited collision pays only in listed cases where the insured operator is 50% or less at fault and the other driver is identified:

• rear-ended by a car going the same direction
• hit while lawfully parked
• the other driver is convicted of OUI

Limited collision doesn't pay if the car was driven by an unlisted household member who would be an inexperienced operator.

Comprehensive:

• Covers fire, theft and vandalism, with a $500 deductible.
• A $100 glass deductible must be offered.
• Theft claims aren't paid until the police confirm the required theft statement was filed.
• An agreed value option must be offered if the insurer may inspect the car.

Loss of use coverage must be offered as an option.

Inspections (211 CMR 94):

• A private passenger policy with physical damage coverage generally can't be issued until the insurer inspects the car.
• The insurer must waive inspection for a new car from a franchised dealer, with the bill of sale.
• It may waive inspection for cars 10 or more model years old.
• It may defer inspection 10 days for convenience, but physical damage coverage is suspended until the inspection happens.

Claims:

• A physical damage loss is paid within 60 days of proof of loss (c.175 s.191A).
• Appraisal disputes go to an umpire picked by a judge if the appraisers can't agree within 15 days.
• A third-party property damage demand gets a written response within 15 working days.

Safe Driver Insurance Plan (211 CMR 134)

• What it does. The plan raises premiums for at-fault accidents and traffic violations and gives credits for incident-free years. It looks back six years.

• At-fault accident. The operator is more than 50% at fault and, for accidents since July 1, 2015, the payment exceeds $1,000.

• Standards of Fault (211 CMR 74) presume fault for:

  • rear-ending another vehicle
  • backing into another vehicle
  • being the only vehicle in a crash

• Fixed points schedule:

  • major traffic violation: 5
  • major accident: 4
  • minor accident: 3
  • minor violation: 2

  A first minor violation with a non-criminal disposition gets no points. Comprehensive claims count only after four claims totaling $2,000.

• In a competitive market, insurers may use their own merit rating plans.

• Appeals. An insured may appeal a surcharge to the Board of Appeal within 30 days. The Merit Rating Board collects claim and violation data.

Cancellation and nonrenewal

Permitted cancellation reasons (c.175 s.22C; 211 CMR 97.03):

• nonpayment
• fraud or material misrepresentation
• suspension or revocation of a household operator's license or registration
• failure to allow a required inspection
• failure to return a renewal application 30 days before expiration, within 90 days after renewal

A not-at-fault claim is not a reason.

Notices (c.175 s.113A; 211 CMR 97.04):

• Cancellation needs at least 20 days' written notice, giving the specific reason. "Underwriting reasons" isn't specific enough.
• A nonpayment notice states the amount due and says the cancellation won't take effect if it is paid in full by the cancellation date.
• An agent who paid the premium without being paid doesn't prevent cancellation.
• Mailed notices require a USPS certificate of mailing (s.187C).

Nonrenewal (s.113F):

• 45 days' written notice, also sent to the Registry of Motor Vehicles.
• The producer forwards the notice within 15 days, unless another insurer already covers the car.

Return premium (211 CMR 97.05):

• If the insurer cancels: pro rata, delivered within 30 days.
• If the insured cancels: short rate, except it is pro rata within the first 30 days or after a total loss.

Appeals (s.113D):

• Someone refused a policy may complain within 10 days.
• A timely appeal of a cancellation to the Board of Appeal keeps the policy in force while it is pending.

Selling the car. A policy ends 30 days after the car is sold unless the registration moves to a replacement vehicle.

Residual market and rates

• Drivers who can't get voluntary coverage are placed through the residual market plan run by Commonwealth Automobile Reinsurers (CAR) (c.175 s.113H).
• Auto rate manuals are filed at least 45 days before use (c.175E s.7). The Commissioner sets rates only after finding competition insufficient (c.175E s.5).

Common exam traps

• Since July 1, 2025, the minimums are 25/50 BI and $30,000 PD. PIP is $8,000, and UM is compulsory.
• PIP pays up to 75% of lost wages and two years of medical expenses. It excludes workers' comp cases.
• The tort threshold is $2,000 of medical expenses or a fracture or other listed injury.
• Cancellation needs 20 days' notice with specific reasons. Nonrenewal needs 45 days.
• An at-fault accident means more than 50% fault and more than $1,000 paid.
• The SDIP looks back six years.
• Limits don't stack.