By Bob Katzen

The Senate adopted and sent to the House a Gov. Healey amendment changing the effective date of a new law that increases the minimum amount of liability auto insurance a driver must purchase, from $5,000 for property damage to $30,000; and for bodily injury from $20,000 per person/$40,000 per accident to $25,000/$50,000. The law approved by the Legislature was scheduled to take effect immediately. Healy’s amendment would delay the effective date to July 1, 2025.

Gov. Healey said she supports the increases. “The current amounts have not been updated in over 30 years and the proposed increases would provide meaningful coverage for those who experience personal injury or property damage due to a motor vehicle accident,” said Healey. “But I also recognize that the language as currently drafted would become effective immediately upon my signature, providing insurance companies inadequate time for implementation. Insurers must update current policies and submit new forms and rates to the Commissioner of Insurance for review and approval before implementing these changes. Based on feedback from industry stakeholders, pushing out the effective date to July 1, 2025 will ensure that these changes take place in an orderly way.”