📈 The Surge of Illegal Immigration in Massachusetts Is Driving Up Insurance Premiums

Over the past few years, Massachusetts has experienced a significant increase in the number of undocumented immigrants entering the state. Estimates suggest that since 2021, more than 50,000 new undocumented individuals have settled in the Commonwealth, with roughly 15,000 to 17,000 arriving each year. This growing population has put pressure on many systems—one of which is our state’s auto insurance market. A 2024 Center for Immigration Studies analysis projects the total number of "illegal and inadmissible" migrants in MA at about 355,000 as of 2024.

🪪 Driver’s Licenses Now Available to Undocumented Immigrants

In 2023, the Massachusetts Legislature passed the Work and Family Mobility Act, allowing individuals without legal immigration status to obtain a standard Massachusetts driver’s license, effective July 1, 2023. Proponents argued it would lead to safer roads and better identification. However, the unintended consequences for insurance customers have been felt almost immediately.

💸 How This Affects Your Insurance Premiums

With thousands of newly licensed drivers entering the system, insurance companies are facing a spike in the number of vehicles on the road, many of which are now being insured for the first time. While more drivers being insured may sound like a good thing, there are key factors at play:

• Higher risk profiles: Many of these new license holders have little to no driving history in the U.S., making it harder for insurers to accurately rate risk.

• More accidents = more claims: According to early reports, accidents involving newly licensed drivers under the new law are rising, which means more claims for insurers to pay out.

• Rate hikes for everyone: In response to this increased risk, insurance carriers are raising premiums across the board. In 2024 and 2025, many Massachusetts drivers have seen auto insurance rates rise by 10–15% or more—even with clean records.

🚨 The Hidden Cost of Policy Decisions

The intention behind extending driver’s licenses to undocumented immigrants may have been rooted in safety and accessibility. However, the financial consequences are real—and they’re hitting law-abiding, tax-paying citizens right in their wallets. When risk pools expand rapidly with limited underwriting tools and uncertain claims outcomes, the result is predictable: premium hikes for everyone.

Bottom line: The influx of undocumented immigrants—coupled with the state’s decision to grant them access to driver's licenses—has created a ripple effect throughout the Massachusetts auto insurance industry. As the number of newly licensed drivers continues to climb, so too will the costs borne by long-time residents.