Massachusetts Commercial Auto Insurance Requirements

Under MGL Chapter 90, Sections 34A through 34R, any vehicle registered for business use in Massachusetts must carry liability insurance at or above the state's compulsory minimums, last updated July 1, 2025. The base commercial auto insurance requirements are:

• $25,000 for bodily injury or death of one person per accident
• $50,000 for bodily injury or death of two or more people per accident
• $30,000 for property damage per accident

Massachusetts' 25/50/30 minimums cover standard business vehicles like service trucks, company cars and local delivery vans. They don't apply to businesses that carry passengers for hire, operate vehicles across state lines or haul hazardous materials, all of which trigger higher limits. A common mistake is assuming the 25/50/30 floor covers every commercial use, when in reality the required coverage varies by vehicle weight, passenger count, cargo type and route.

Few states leave less room for exemptions than Massachusetts. The Compulsory Automobile Insurance Law under MGL Chapter 90, Section 34A requires coverage on every registered vehicle and the July 2025 increase to 25/50/30 applies without exception to both personal and commercial automobiles. What exemptions exist are based on who owns the vehicle, not how it's used, as defined in the Commonwealth Automobile Reinsurers manual.

If your vehicle carries a Massachusetts RMV registration and touches a public road, whether in Boston, Worcester, Springfield or any of the state's 351 municipalities, the 25/50/30 compulsory minimums apply in full. Contact the Massachusetts Division of Insurance to verify whether your specific situation qualifies for an ownership-based exemption.

Two alternatives to a standard commercial auto policy exist under MGL Chapter 90, Sections 34A through 34D, though both must meet the same 25/50/30 compulsory minimums.

• Surety bond: An authorized surety company can issue a motor vehicle liability bond in place of a Massachusetts insurance policy, covering bodily injury and property damage at or above the state's 25/50/30 compulsory minimums. The bond must satisfy any judgment within 30 days and stay active through the Massachusetts RMV for the full registration period. Businesses that can't get coverage in the voluntary market sometimes choose this route over assignment through the MAIP.
• Cash deposit: Section 34D permits vehicle owners to deposit cash or securities with the state treasurer instead of buying a policy or bond. The deposit must at least match the 25/50/30 compulsory minimums ($30,000 minimum for a single vehicle), and it remains available to satisfy judgment claims. Commercial operators rarely use this option because it locks up working capital and any claim that exceeds the deposit becomes a direct liability for the business.

No self-insurance certificate program exists for motor vehicle liability under MGL Chapter 90, unlike the 30+ states that allow fleet self-insurance for businesses with 25 or more vehicles. Massachusetts businesses needing higher limits or fleet-wide coverage must purchase standard commercial auto policies or use one of the two alternatives listed above.

Certain business operations in Massachusetts create coverage gaps or trigger requirements that go beyond the standard 25/50/30 compulsory minimums.

Insurers electronically notify the Massachusetts RMV whenever a commercial auto policy is canceled or lapses, triggering automatic registration revocation under MGL Chapter 90, Section 34P. Police also verify coverage during traffic stops and operating without insurance is a criminal offense carrying fines of $500 to $5,000 in Massachusetts, not a civil infraction. These penalties apply to any vehicle with a Massachusetts registration, but they don't apply to federally exempt vehicles like government-owned units or vehicles covered under the exemptions table above.

Massachusetts doesn't operate an SR-22 filing program because the state already requires proof of 25/50/30 coverage as a condition of registration; if your license is suspended from an out-of-state violation, you'll file the SR-22 in that state first. Convicted drivers also owe a MAIP fee equal to the greater of $500 or one year's compulsory premium at the highest risk factors.

Walk through these seven steps for each vehicle in your fleet to confirm you're meeting Massachusetts' 25/50/30 requirements, or the applicable federal threshold, if your operations cross state lines.

Massachusetts commercial auto insurance requirements come down to four factors: vehicle use, weight class, route jurisdiction and cargo type. Match your policy's liability limits, whether the state's $30,000 property damage minimum or the federal $5 million hazmat ceiling, to the specific category that applies to each vehicle in your fleet, and update both whenever your operations change.

Massachusetts' 25/50/30 liability floor and $8,000 PIP were designed as bare minimums, not recommendations. The real question is how much coverage your business should carry beyond what Massachusetts or the FMCSA requires, and the answer depends on your vehicles, routes and risk tolerance.