%20(8).png)
If you're moving to Massachusetts from another state, you're probably already bracing for sticker shock when it comes to car insurance. According to The Boston Globe, the cost of auto insurance in Massachusetts has soared by almost 38 percent since the beginning of 2022, climbing at a pace that is more than double the overall rate of consumer inflation.
The Boston area and its suburbs tend to have higher auto insurance costs than many other parts of the country. Southern and Western Massachusetts can be expensive too, but the Boston metro area is notorious for high premiums.
If you're in the process of registering your vehicle after moving to Massachusetts, you've already discovered that you need a Massachusetts auto insurance policy in place before the RMV will process your registration. But getting any policy isn't the same as getting the right coverage.
When people see their first Massachusetts car insurance quote, they often look for ways to cut costs. They might raise deductibles, drop certain coverages, or reduce their limits. While some of these adjustments make sense, there's one area where we strongly recommend maintaining, or even increasing, your coverage: liability limits.
This article explains why liability coverage matters more than many new Massachusetts residents realize, why the state minimums leave most people dangerously underinsured, and what limits actually make sense for people moving to the Bay State.
Liability coverage is the part of your auto insurance policy that protects your financial well-being if you cause an accident.
Here's how it works: You're driving, you cause an accident, and the other party is injured. They have medical expenses, lost wages, and pain and suffering. They file a lawsuit against you to recover those costs. Your liability coverage is what helps protect you in that situation.
Liability coverage does two important things. First, it pays for your legal defense. This includes attorney fees, court costs, and expert witnesses. Legal defense alone can cost tens of thousands of dollars, even before a settlement or judgment. Second, it can cover damages up to your policy limits if you're found liable.
Without adequate liability coverage, you're responsible for paying the difference out of pocket. That could mean tapping into your savings, your home equity, your retirement accounts, or even your future income.
Liability coverage is not about protecting your car. It is about protecting everything you have worked to build.
Massachusetts recently updated its minimum liability requirements. As of July 1, 2025, the state requires:
These limits were increased from $20,000 per person and $40,000 per accident. The previous minimums had been in place since 1988.
Here's the problem: these numbers are woefully insufficient for most drivers, especially homeowners.
If you own a home, you likely have home equity. You probably have savings, retirement accounts, and investments. A judge can order you to liquidate those assets to pay a judgment. Your future wages can also be garnished if the damages exceed your policy limits.
The state minimums might meet Massachusetts legal requirements, but they don't come close to protecting what most people have at stake.
People moving to Massachusetts aren't necessarily shocked by the state's minimum requirements. What surprises them is how much coverage they actually need.
There are a few reasons Massachusetts creates more liability exposure than other states:
Massachusetts requires insurance for every registered vehicle. According to the Insurance Information Institute, Massachusetts has one of the lowest rates of uninsured drivers in the country, at approximately 3.5%. That sounds like good news, and it is, but it also means you're sharing the road with insured drivers who can file claims and lawsuits with the backing of their own insurance companies.
Massachusetts drivers spend a lot of time on the road. According to U.S. Census Bureau data reported by The Boston Globe, Massachusetts has the fourth-longest commute time among states, with the average worker's trip to work clocking in at 30 minutes.
Longer commutes don't just increase your risk of being in an accident. They increase your exposure to rush-hour traffic, distracted commuters, and complex multi-vehicle scenarios where liability claims can quickly exceed state minimums. When multiple parties are involved in an accident, multiple injury claims can stack up fast. A three-car accident with two injured parties can easily result in claims exceeding $100,000, even before legal fees are factored in.
More time on the road means more opportunities for something to go wrong. And when it does, inadequate liability coverage can turn a difficult situation into a financial catastrophe.
Many people moving to Massachusetts work with an insurance agent for the first time in years. When a licensed professional reviews your situation, they're going to recommend appropriate limits based on what you actually have to protect, not just what the state says is legal.
At Oak Grove Insurance, we don't start liability conversations at the state minimums. For homeowners, we start at $250,000 per person / $500,000 per accident for bodily injury liability.
We also recommend $250,000 in property damage coverage.
Here's why those numbers matter: they align with the minimum requirements for an umbrella insurance policy. An umbrella policy extends liability coverage across your auto, home, and other policies. It's becoming clear to us that most homeowners benefit from carrying an umbrella policy, and starting with $250,000/$500,000 auto liability limits makes that transition seamless.
This table illustrates why state minimums rarely provide adequate protection for homeowners. The gap between $50,000 and the actual cost of a serious accident can be financially devastating.
Your optional bodily injury limits protect you when you're at fault. But what happens when someone else causes the accident and they don't have enough coverage, or any coverage at all?
That's where uninsured motorist coverage and underinsured motorist coverage come in. These coverages help provide access to funds when another driver is at fault but doesn't have sufficient insurance.
We recommend matching your uninsured and underinsured motorist limits to your optional bodily injury limits. This ensures you're protected whether you're at fault or someone else is.
These coverages don't just apply in Massachusetts. They also protect you when driving in Rhode Island, New Hampshire, Connecticut, New York, and other states.
You never know when an accident is going to happen, how it's going to happen, or who it might involve.
A few years ago, a driver was traveling at night in the early morning hours. They struck a pedestrian who was lying in the middle of the road, dressed in dark clothing. The pedestrian survived the collision, and the driver was found liable for the medical expenses.
Fortunately, the driver had sufficient liability coverage, not just from their auto policy, but also from an umbrella policy. Their financial well-being was protected.
Without adequate coverage, that driver could have faced financial ruin. Medical expenses, ongoing care, lost wages, and pain and suffering claims can easily exceed $100,000. If you're carrying state minimums, you're personally responsible for everything beyond $50,000.
What Happens Without Adequate Coverage:
You pay for your own legal defense costs, which can run $10,000 to $50,000 or more before the case is even settled. Then, if a judgment is awarded against you that exceeds your policy limits, you're responsible for the difference. This can mean liquidating savings, borrowing against your home equity, or having your wages garnished for years. Your insurance company stops defending you once your policy limits are reached, leaving you to handle the remaining liability on your own.
What Happens With Adequate Coverage:
Your insurance company handles everything up to your policy limits. They provide legal defense, negotiate settlements, and pay judgments. Your personal assets remain protected, and you avoid the financial devastation that can follow a serious at-fault accident.
Yes, Massachusetts car insurance is more expensive than many other states. But cutting liability coverage to save money is one of the riskiest moves you can make.
If you need to reduce your premium, consider:
But don't reduce the coverage that protects everything you've worked to build.
As of July 1, 2025, Massachusetts requires $25,000 per person and $50,000 per accident for bodily injury liability, plus $30,000 for property damage. These limits are often insufficient for homeowners and drivers with significant assets.
Most Massachusetts homeowners benefit from carrying an umbrella policy. Umbrella insurance extends liability coverage across your auto, home, and other policies. It's especially important if you have home equity, savings, retirement accounts, or significant future earning potential.
Massachusetts car insurance tends to be more expensive due to high population density, long commute times, expensive vehicle repairs, and a competitive legal environment. The Boston area and surrounding suburbs typically see the highest premiums.
Yes. We recommend matching your uninsured and underinsured motorist coverage to your optional bodily injury limits. This ensures you're protected whether you cause an accident or another driver with insufficient coverage causes one.
Technically, yes, but we don't recommend it. Liability coverage protects your financial future. If you need to reduce premiums, consider raising deductibles, bundling policies, or exploring discounts instead of cutting liability limits.
If you're moving to Massachusetts and need help understanding your car insurance options, Oak Grove Insurance can help. We work with homeowners and families throughout the Boston area and surrounding communities to make sure they have the right coverage in place, not just the cheapest policy.
We'll review your current coverage, explain what actually makes sense for your situation, and help you avoid the most common mistakes new Massachusetts residents make with their auto insurance.
Ready to get started? Request a quote or call us at (508) 928-6645. A quick conversation now can save you from a much bigger financial problem later.
Click on the button below to get started with a custom insurance quote to fit your unique needs.
📍 Canton Office: 45 Dan Rd., Canton, MA, 02021
Serving: Canton, Stoughton, Sharon, Norwood, Westwood, Milton, Randolph, and all of Massachusetts