Car insurance is a necessity for drivers across the United States, but did you know that each state has its own set of minimum requirements? Whether you're a new driver or simply curious about what's required where you live, it's important to understand these regulations to ensure you're adequately covered on the road.
What is Minimum Car Insurance?
Minimum car insurance refers to the basic level of coverage mandated by each state's laws. While these requirements vary, the majority of states require at least liability insurance, which covers damages to others if you're at fault in an accident. Some states also require additional coverage, such as personal injury protection (PIP) or uninsured/underinsured motorist coverage.
U.S. State Requirements
Let's take a glance at what's required in each state.
Alabama
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Alaska
Bodily injury liability - $50,000 per person, $100,000 per accident
Property damage liability - $25,000 per accident
Arizona
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $15,000 per accident
Arkansas
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
California
Bodily injury liability - $15,000 per person, $30,000 per accident
Property damage liability - $5,000 per accident
Colorado
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $15,000 per accident
Connecticut
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Delaware
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $10,000 per accident
Personal injury protection - $15,000 per person, $30,000 per accident
Florida
Property damage liability - $10,000 per accident
Personal injury protection - $10,000
Georgia
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Hawaii
Bodily injury liability - $20,000 per person, $40,000 per accident
Property damage liability - $10,000 per accident
Personal injury protection - $10,000
Idaho
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $15,000 per accident
Illinois
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $20,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Indiana
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Iowa
Bodily injury liability - $20,000 per person, $40,000 per accident
Property damage liability - $15,000 per accident
Kansas
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Personal injury protection - $4,500
$25,000 per person, $50,000 per accident
Kentucky
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Louisiana
Bodily injury liability - $15,000 per person, $30,000 per accident
Property damage liability - $25,000 per accident
Maine
Bodily injury liability - $50,000 per person, $100,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $50,000 per person, $100,000 per accident
Medical payments - $2,000
Maryland
Bodily injury liability - $30,000 per person, $60,000 per accident
Property damage liability - $15,000 per accident
UM/UIM bodily injury - $30,000 per person, $60,000 per accident
UM/UIM property damage - $15,000 per accident
Massachusetts
Bodily injury liability - $20,000 per person, $40,000 per accident
Property damage liability - $5,000 per accident
Personal injury protection - $8,000
UM/UIM bodily injury - $20,000 per person, $40,000 per accident
Michigan
Bodily injury liability - $20,000 per person, $40,000 per accident
Property damage liability - $10,000 per accident
Personal injury protection - $250,000
Minnesota
Bodily injury liability - $30,000 per person, $60,000 per accident
Property damage liability - $10,000 per accident
Personal injury protection - $40,000
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Mississippi
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Missouri
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Montana
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $20,000 per accident
Nebraska
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Nevada
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $20,000 per accident
New Hampshire*
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
UM/UIM property damage - $25,000
Medical payments - $1,000
New Jersey
Bodily injury liability - $15,000 per person, $30,000 per accident
Property damage liability - $5,000 per accident
Personal injury protection - $15,000
UM/UIM bodily injury - $15,000 per person, $30,000 per accident
New Mexico
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability -$10,000 per accident
New York
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability -$10,000 per accident
Personal injury protection - $50,000
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
North Carolina
Bodily injury liability - $30,000 per person, $60,000 per accident
Property damage liability -$25,000 per accident
UM/UIM bodily injury - $30,000 per person, $60,000 per accident
UM/UIM property damage - $25,000 per accident
North Dakota
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Personal injury protection - $30,000
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Ohio
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Oklahoma
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Oregon
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $20,000 per accident
Personal injury protection - $15,000
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Pennsylvania
Bodily injury liability - $15,000 per person, $30,000 per accident
Property damage liability - $5,000 per accident
Medical payments - $5,000
Rhode Island
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
South Carolina
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
UM/UIM property damage - $25,000
South Dakota
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Tennessee
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
Texas
Bodily injury liability - $30,000 per person, $60,000 per accident
Property damage liability - $25,000 per accident
Utah
Bodily injury liability - $25,000 per person, $65,000 per accident
Property damage liability - $15,000 per accident
Personal injury protection - $3,000
Vermont
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $10,000 per accident
UM/UIM bodily injury - $50,000 per person, $100,000 per accident
UM/UIM property damage - $10,000 per accident
Virginia*
Bodily injury liability - $30,000 per person, $60,000 per accident
Property damage liability - $20,000 per accident
UM/UIM bodily injury - $30,000 per person, $60,000 per accident
UM/UIM property damage - $20,000 per accident
Washington
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $10,000 per accident
Washington DC
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $10,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
UM/UIM property damage - $5,000 per accident
West Virginia
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $25,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
UM/UIM property damage - $25,000 per accident
Wisconsin
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $10,000 per accident
UM/UIM bodily injury - $25,000 per person, $50,000 per accident
Wyoming
Bodily injury liability - $25,000 per person, $50,000 per accident
Property damage liability - $20,000 per accident
Understanding Coverage Types
It's crucial to understand what each type of coverage entails.
Bodily injury liability: Protects you financially if you're found responsible for an accident that injures another person. It covers medical expenses, lost wages, and legal fees.
Property damage liability: This covers the cost of repairing or replacing another person's property if you're at fault in an accident.
Uninsured/underinsured motorist coverage: This helps cover your expenses if you're in an accident with a driver who doesn't have enough insurance to pay for damages.
Personal injury protection (PIP): Pays for medical expenses and lost wages for you and your passengers, regardless of who's at fault.
Medical payments: Covers medical expenses for you and your passengers, typically in tort states where fault must be determined.
States Without Car Insurance Requirements
Interestingly, car insurance is not required in New Hampshire and Virginia. However, drivers in these states must demonstrate financial responsibility in case of an accident, or they may face penalties such as license suspension.
Minimum Coverage Restrictions for Leased Vehicles
If you're leasing a vehicle, you might wonder why you can't simply opt for minimum coverage car insurance like other drivers. The reason lies in the contractual obligations between you and the leasing company. Here's why:
When you lease a vehicle, you're essentially borrowing it from the leasing company for a set period. However, the leasing company still retains ownership of the car throughout the lease term. Because of this, they have a vested interest in ensuring the vehicle is adequately protected in case of an accident.
To safeguard their investment, leasing companies typically require lessees to carry higher levels of insurance coverage than the minimum required by state law. This often means carrying liability limits of at least $100,000 per person and $300,000 per accident for bodily injury, along with $50,000 for property damage (or 100/300/50 coverage).
Moreover, in addition to liability coverage, leasing agreements often mandate comprehensive and collision coverage. These types of coverage protect the leased vehicle itself against damage from accidents, theft, vandalism, and other incidents.
Furthermore, leasing companies may place restrictions on the deductible amounts you can choose for comprehensive and collision coverage. This ensures that any repairs or replacements needed for the vehicle can be covered promptly without imposing a significant financial burden on you.
It's important to note that leasing requirements can vary depending on the leasing company and the terms of your lease agreement. To ensure compliance with your lease terms and adequate protection for your leased vehicle, it's advisable to consult with your dealer or leasing company for specific insurance requirements. By understanding and meeting these requirements, you can drive with confidence knowing that you're fulfilling your contractual obligations and protecting your leased vehicle appropriately.
FAQs
How much does minimum coverage cost?
The cost of minimum coverage varies based on factors like your location, driving history, and the insurance provider. On average, it can range from $81 to $146 per month.
Should I get minimum or full coverage?
The decision between minimum and full coverage depends on factors like your car's age and value. Newer cars often warrant full coverage, while older vehicles may suffice with minimum coverage.
What happens if I don't have insurance?
Driving without insurance can result in fines and leave you financially vulnerable in case of an accident. It's illegal in most states and not worth the risk.
I lease my vehicle. Why can’t I get minimum coverage car insurance?
When leasing a vehicle, your leasing company typically requires higher insurance coverage limits than the state minimums. These usually include at least $100,000 per person and $300,000 per accident in bodily injury coverage, along with $50,000 in property damage coverage (known as 100/300/50). Because the leasing company still owns the car, they want extra financial protection if you're at fault in an accident.
Additionally, leasing agreements often mandate comprehensive and collision coverage and may limit how high you can set your deductible. Requirements vary, so it's wise to consult your dealer or leasing company to ensure your policy meets lease terms.
Does my minimum coverage car insurance cover me in another state?
Yes, your minimum coverage car insurance will cover you when you drive in another state within the United States. Your policy automatically adjusts to meet the minimum requirements of the state you're driving in. This flexibility also applies if you drive into Canada, but not into Mexico. Always confirm with your insurer before traveling internationally.
Understanding your state's minimum car insurance requirements is essential for staying legal and financially protected on the road. Take the time to review your coverage options and ensure you have the appropriate protection for your needs.
English (United States) ·