An Act relative to surcharges on motor vehicle insurance premiums

This bill modifies Massachusetts motor vehicle insurance laws to increase the financial threshold for surcharges applied to drivers who cause at-fault accidents. Specifically, it raises the claim payment limit from $1,000 to $5,000, meaning drivers will only face premium increases if their at-fault accident results in a claim exceeding this new amount after deductibles are applied. Additionally, the legislation establishes a two-tiered system where accidents causing between $5,000 and $7,500 in damages are classified as minor incidents, while those exceeding $7,500 are classified as major incidents, both of which trigger premium hikes. The law explicitly prohibits insurance companies from applying any surcharge for at-fault accidents where the claim payment is $5,000 or less. These changes directly affect drivers in Massachusetts and the insurance policies they hold by altering the specific dollar amounts used to determine penalty fees.