What are the minimum auto insurance requirements in Massachusetts for 2025?

As of July 1, 2025, Massachusetts requires $25,000 per person and $50,000 per accident for bodily injury liability, $30,000 for property damage liability, $25,000/$50,000 for uninsured motorist coverage, and $8,000 in personal injury protection (PIP). These are the first increases since 1988 and apply to all new policies or renewals after that date.

Do I need flood insurance if I live in Beverly, Massachusetts?

If your property is in a FEMA Special Flood Hazard Area and you have a federally-backed mortgage, flood insurance is required. Many properties along Beverly Cove, Beverly Farms waterfront, and near Bass River fall into these zones. Even if you're not required to carry it, flood insurance is worth considering since standard homeowners policies don't cover flood damage and 25% of claims come from moderate-to-low risk areas.

Should I use a local insurance agent in Beverly or buy online?

Local Beverly agencies like Sterling Insurance, Duffy Insurance, and Cross Insurance understand North Shore-specific risks better than national online carriers. They know which neighborhoods flood, how to handle coastal property coverage, can shop multiple carriers on your behalf, and provide personalized service when you need to file a claim. For complex coastal property needs, local expertise is invaluable.

What's a hurricane deductible and how does it work in Beverly?

A hurricane deductible is a percentage-based deductible (usually 1%, 2%, or 5% of your dwelling coverage) that applies specifically to wind and hurricane damage in coastal areas like Beverly. If you have a $750,000 home with a 2% hurricane deductible, you pay the first $15,000 of storm damage out of pocket before insurance kicks in. Lower percentages cost more in premiums but reduce your out-of-pocket risk after major storms.

How much liability coverage do I really need beyond the minimum?

While Massachusetts now requires $25,000/$50,000 bodily injury liability, that's often not enough if you cause a serious accident. Medical bills and lost wages from severe injuries easily exceed $50,000. Most insurance experts recommend at least $100,000/$300,000 in auto liability coverage, and if your assets exceed those limits, add a $1-2 million umbrella policy for comprehensive protection at relatively low cost.

Insurance in Beverly, MA: Complete 2025 Guide

Q: How much more expensive is homeowners insurance on the North Shore?

Beverly homeowners near the coast typically pay 25-50% more than inland properties due to hurricane, nor'easter, and coastal storm risks. While Massachusetts' average home insurance costs about $1,518 annually, coastal Beverly properties often pay $2,000 to $3,000 or more. You'll also face percentage-based wind/hurricane deductibles, typically 1-5% of your dwelling coverage.

Beverly sits on Massachusetts' North Shore, where the ocean meets history—it's the birthplace of the U.S. Navy and home to Endicott College. But living in this Essex County gem comes with insurance considerations that inland residents don't face. Between new state auto insurance requirements, coastal property risks, and the quirks of Massachusetts' unique insurance market, you need a guide that cuts through the complexity.

Here's what you need to know about protecting yourself, your car, and your home in Beverly in 2025 and beyond.

Auto Insurance in Beverly: What Changed in 2025

If you renewed your auto insurance policy after July 1, 2025, you saw something different: higher minimum coverage requirements. Governor Maura Healey signed these changes into law after Massachusetts hadn't updated its minimums since 1988. With vehicle repair costs up 56% since the pandemic, the old minimums simply didn't cut it anymore.

Here's what you're now required to carry: $25,000 per person and $50,000 per accident for bodily injury liability (up from $20,000/$40,000), $30,000 for property damage (a massive jump from just $5,000), $25,000/$50,000 for uninsured motorist coverage, and $8,000 in personal injury protection, which stayed the same. That old $5,000 property damage limit? It wouldn't even cover a fender bender with a new SUV. The average minimum coverage premium increased to about $711 annually—a 36% jump—but you're getting protection that actually reflects real-world costs.

Homeowners Insurance: North Shore Coastal Realities

Beverly's location on the North Shore is beautiful until hurricane season arrives. Your homeowners insurance reflects that reality. If you're living anywhere near the coast—Beverly Cove, Beverly Farms, or within sight of the ocean—expect to pay 25-50% more than your inland neighbors. Massachusetts' average home insurance costs about $1,518 annually, but coastal properties routinely pay $2,000 to $3,000 or more.

Beverly's median home value hit $738,369 in 2023, which means your dwelling coverage needs to keep pace. Don't just insure for market value—insure for replacement cost. If your 100-year-old colonial burns down, you need enough coverage to rebuild it with modern materials and labor costs. Most insurers recommend coverage equal to at least 80% of your home's replacement value, but 100% is smarter if you can afford it.

Wind and hurricane deductibles are another North Shore reality. Standard homeowners policies in coastal areas include separate percentage-based deductibles for wind damage—typically 1%, 2%, or 5% of your dwelling coverage. On a $750,000 home, a 2% hurricane deductible means you're paying the first $15,000 out of pocket after storm damage. That's not a typo. Lower percentage deductibles cost more upfront but save you during a nor'easter.

Flood Insurance: Not Optional for Beverly Waterfront

Here's what surprises most Beverly homeowners: your standard homeowners policy doesn't cover flooding. Not coastal storm surge, not heavy rain overwhelm, not river overflow. None of it. If your property sits in a FEMA Special Flood Hazard Area—and many Beverly Cove and Beverly Farms properties do—your mortgage lender will require separate flood insurance.

FEMA updated Beverly's flood maps in May 2024, adding 65 new parcels to high-risk zones. Properties along Beverly Cove, near Bass River, and portions of Beverly Farms now face increased flood risk classifications. Massachusetts' average flood insurance costs $1,142 annually for a single-family home, but waterfront properties in high-risk zones can pay several thousand dollars depending on elevation and flood mitigation measures.

Even if you're not required to buy flood insurance, consider it anyway. Massachusetts climate projections suggest up to half a million residents could face flooding risks over the next century due to rising sea levels and increasing precipitation. A single basement flood can cause tens of thousands in damage. Flood insurance covers building damage up to $250,000 and contents up to $100,000 through the National Flood Insurance Program.

Working with Beverly's Local Insurance Agencies

Why does local matter? These agencies understand Essex County risks intimately. They know which Beverly neighborhoods flood during spring storms, which properties face wind exposure from nor'easters, and how to navigate Massachusetts' complicated insurance market. They can bundle your auto, home, and umbrella policies for discounts, shop multiple carriers on your behalf, and actually answer the phone when you have a claim.

Massachusetts operates as a managed competition state for auto insurance, meaning rates are filed and approved by the Division of Insurance. This creates pricing consistency but also means shopping around matters—different carriers offer different discounts, and an independent agent can compare options quickly. For homeowners insurance, the market is more open, making agent expertise even more valuable.

Practical Steps for Beverly Residents

Start by reviewing your current coverage against the new 2025 auto insurance minimums. If your policy renewed after July 1, 2025, you're already compliant, but check if you should increase limits beyond the minimums. For homeowners, verify your dwelling coverage keeps pace with Beverly's rising home values—call your agent annually to adjust coverage as needed.

Check FEMA's flood map database to see if your property sits in a Special Flood Hazard Area. Even if you're not in a high-risk zone, properties in moderate-to-low risk areas can still flood—and 25% of flood insurance claims come from outside high-risk zones. Get a flood insurance quote even if you think you don't need it.

Consider an umbrella policy if your net worth exceeds your auto and home liability limits. Umbrella coverage kicks in when your underlying policies max out, providing an extra $1 million to $5 million in liability protection for surprisingly low premiums—often $200 to $400 annually for $1 million in coverage.

Insurance in Beverly isn't one-size-fits-all. Your proximity to the ocean, your home's age and value, and your driving record all shape what you need. But understanding Massachusetts' new requirements, Beverly's coastal risks, and the value of local expertise puts you in control. Review your coverage annually, adjust as your life changes, and work with agents who understand the North Shore. Your future self will thank you when the unexpected happens.

Insurance in Beverly, Massachusetts: Your Complete Guide

Key Takeaways