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HD 2401

An Act relative to surcharges on motor vehicle insurance premiums

194th Legislature (2025-2026) Introduced by Mary Keefe and 5 co-sponsors

Massachusetts bill limiting insurance premium surcharges to make vehicle insurance more affordable and prevent excessive rate increases on drivers.

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WeVote Research Nonpartisan
Bill Summary · HD 2401

Legislative bill overview

HD 2401 proposes to regulate surcharges that insurance companies can impose on motor vehicle insurance premiums in Massachusetts. The bill establishes limits on how much insurers can increase rates based on various factors such as driving violations, accidents, or other underwriting criteria. This aims to prevent what legislators view as excessive rate increases that disproportionately affect certain drivers.

Why is this important

Motor vehicle insurance is a legally required expense for drivers, making rate structures directly impact household budgets and transportation access. Surcharges can significantly increase premiums—sometimes doubling them—which may price low-income drivers out of the market or into uninsured driving. The bill addresses concerns about fairness and affordability in insurance pricing while potentially affecting insurer profitability and risk assessment practices.

Potential points of contention

  • Insurance industry perspective: Insurers argue surcharges reflect actual risk and are necessary to maintain accurate pricing; caps may force them to raise baseline rates for all customers or reduce coverage availability
  • Scope and fairness: Disagreement over which surcharges are justified (accidents vs. violations vs. credit scores) and whether uniform limits account for different risk profiles across Massachusetts regions
  • Economic impact: Uncertainty about whether rate restrictions improve affordability or simply shift costs, potentially increasing premiums for safe drivers or reducing insurer participation in the market

Compiled from official sources — confirm details with the bill’s official record.

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