Senate Approves Bill to Manage Car Rental Costs

SEPTEMBER 30, 2025

Recently, Senator Bill Driscoll Jr. (D-Milton) joined his colleagues in the Massachusetts Senate in approving legislation aimed at managing car rental costs for residents.

“Today the Senate took action to manage costs for consumers,” said Senate President Karen E. Spilka (D-Ashland). “Few responsibilities are more important, and I applaud the Senate for our action today to manage costs for rental car consumers. I’m grateful to Chair Rodrigues for his committee’s work on this legislation, and to Chair Crighton and Senator Cyr for their work and leadership.”

An Act relative to affordable car rentals, S.2367, aligns Massachusetts with the majority of other states by updating car rental insurance requirements to maintain liability coverage on a secondary basis, making rental companies responsible only if the renter is uninsured or underinsured.

“When friends visited me on Cape Cod this summer, they were stunned at just how expensive it was to rent even a small sedan for the weekend,” said Senator Julian Cyr (D-Truro), primary sponsor of the legislation. “And they're not wrong — rental car prices in Massachusetts are higher than almost anywhere else in the country, in part because we've kept an outdated insurance requirement on the books. We're one of the only states where rental companies, not your own insurance, are required to carry primary coverage, and the cost of that policy gets passed right along to consumers. By aligning Massachusetts with the rest of the country, we're helping lower rental car prices for families, travelers and anyone who needs to rent a car in a pinch. I'm proud the Senate has taken this step to make life just a little more affordable for our residents and visitors.”

“As we continue to tackle affordability issues in Massachusetts, we need to eliminate this unnecessary insurance requirement that is out of alignment with most other states,” said Senator Brendan Crighton (D-Lynn), Senate Chair of the Joint Committee on Transportation. “As co-chair of the Joint Committee on Transportation, I was proud to help advance this legislation that takes the burden of covering primary insurance off of car rental companies, which will in turn prevent raised prices for consumers. Thank you to Senate President Spilka for prioritizing a solution to this issue and Senator Cyr for his leadership on this measure.”

“Making these important updates aligns the Commonwealth with most other states, protecting and limiting unnecessary costs for consumers,” said Driscoll. “An already and personally insured customer should not be dealt additional insurance costs when renting a car. This effort makes for a more accessible and affordable car rental industry in Massachusetts.”

By shifting primary liability to the renter’s personal auto insurance, the legislation helps make car rentals more affordable and accessible for Massachusetts residents, reducing costs while maintaining necessary protections. A fact sheet with full details of the legislation is available online.

Votes taken by committee to advance the bills to the floor are available publicly on the respective bills’ webpages, along with summaries of the legislation. A recording of the Senate’s livestreamed debate and votes on the legislation can be found archived on the public website.

Having been approved by the Senate, the legislation now advances to the House of Representatives for consideration.

Statement of Support

Don Lefeve, Executive Director of the American Car Rental Association

“We appreciate our sponsor Senator Cyr and Senate leadership for advancing S. 2603. This legislation brings Massachusetts in line with over 90% of states on the primary–secondary insurance issue. It’s a fair, common-sense reform that aligns Massachusetts with national standards, while helping to keep rental car costs affordable for consumers across the state.”

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