Mandatory Minimum Auto Insurance Increases July 1

Like nearly all states, Massachusetts requires a minimum level of automobile insurance. In Massachusetts, just four types of insurance are mandated: bodily injury to others, personal injury protection, liability for damage to someone else’s property, and uninsured motorist coverage for bodily injury. Any additional coverage, such as comprehensive coverage for non-collision damage to your vehicle, collision coverage, and uninsured motorist coverage for your property are optional. 

As of July 1, 2025, some of the mandatory minimums for Massachusetts drivers will increase. Here’s what’s currently required and what you can expect starting in July.

What Vehicles Require Automobile Insurance? 

Not every motorized vehicle requires auto insurance in Massachusetts. Some vehicles that fall outside the definition of “motor vehicle” for mandatory insurance purposes include: 

• E-bikes
• Mopeds (motor bikes) and scooters with a top speed of less than 30 mph
• Off-road vehicles, such as 4-wheelers, snowmobiles, dune buggies, golf carts and go-karts

Note, however, that most of these vehicles are generally not permitted to operate on public roads. Motor bikes that have maximum speed capacity of more than 30 mph but less than 40 mph may be registered as limited use vehicles, and have different insurance requirements than other vehicles. Three-wheelers are generally classified as motorcycles, and so require insurance. 

Because there are exceptions based on issues like maximum speed and whether a vehicle is used commercially, you should always check to find out whether any new-to-you vehicle requires insurance. You should also take care to understand exactly what is and is not covered under which policies. For example, your homeowner’s insurance may or may not cover a vehicle like a go-kart or moped on your property. But, if the policy does cover the vehicle on your property, that coverage may stop abruptly at the foot of your driveway, meaning if your teen dips into the street to turn around and an accident happens, coverage may be denied.

If Your Vehicle is Financed, the Lender May Require Insurance

Even if you’re not legally required to carry insurance on a vehicle like a low-speed moped or an ATV, you may be contractually required to purchase certain insurance. That’s because your lender doesn’t want to assume the risk of loss if you are in a collision and seriously damage the vehicle. And, they can’t count on people reliably making their motor vehicle loan payments if the vehicle has been destroyed.

You May Want to Purchase Insurance Even if It’s Not Required

Insurance mandates are intended to protect others who may be harmed by negligent drivers, and to ensure that anyone involved in an accident can get medical care without waiting to fight out who was at fault. But insuring your vehicle protects you, too. 

If you’re in an accident and someone else is injured or you damage someone else’s property, you will likely be legally responsible for the damages whether you’re insured or not. The difference is that if you have insurance coverage, the insurance company will provide a lawyer, negotiate with the injured party, and pay the settlement or verdict (up to your policy limits). If you’re uninsured, your assets may be at risk. 

You may also use insurance to protect yourself and your vehicle in case you are injured or your ATV or other off-road vehicle is damaged in an accident. 

What If I Was Hit By an Uninsured Vehicle? 

If you were hit by a vehicle that wasn’t insured, you likely still have options for covering your losses. For example, if the incident occurred on the vehicle owner’s property, their homeowners’ insurance might provide coverage. Or, your own uninsured motorist policy may cover your losses. You may also be able to pursue compensation directly from the responsible party. The best way to learn about your options is to schedule a free consultation with an experienced Massachusetts injury lawyer.

If you have any questions about a personal injury matter, call us today at 978-459-3085 or fill out our contact form.