Minimum car insurance coverage requirements in each state

Auto insurance is a legal requirement in almost every state for drivers who own a vehicle or drive it regularly. Each state has minimum coverage requirements to financially protect drivers in the event of an accident.

Typically, a minimum coverage auto insurance policy includes bodily injury liability and property damage liability coverage, but some states also require additional types of coverage. Minimum coverage car insurance can be a way to save on insurance premiums, but it’s generally only available for vehicles without a loan or lease.

What insurance is required?

Almost every state has some type of car insurance requirement. Some states allow drivers to meet the minimum requirements through a bond, deposits, evidence of self-insurance, or an auto insurance policy. New Hampshire does not have a car insurance requirement unless drivers receive certain convictions that require them to carry an SR-22.

Below are the types of coverage typically required with minimum auto insurance:

  • Bodily Injury Liability (BI): If you cause an accident with another driver, bodily injury liability coverage will help pay for medical expenses related to the other driver’s injuries. It may also cover your legal fees if the other driver sues you for your losses.
  • Property Damage Liability (PD): Property damage liability coverage pays for property damage you cause to others. For example, if you hit another driver, your property damage liability insurance would help pay for repairs to your vehicle.
  • Uninsured/Underinsured Motorist Coverage (UM/UIM): Uninsured/Underinsured Motorist Coverage offers financial protection in the event you are in an accident with a driver who is uninsured or does not have enough coverage to pay for your losses.
  • Personal Injury Protection (PIP): Personal Injury Protection it is a requirement in states that have no-fault laws. If you are in an accident, PIP can pay your medical bills, lost wages, rehabilitation costs, and related expenses, regardless of who caused the accident. This coverage can also be purchased in some at-fault states.
  • Medical Payments Coverage (MedPay): Medical Payments the coverage helps pay for your medical expenses after an accident and is not as strong a coverage as PIP can be. It is available in non-PIP states and is considered optional coverage in most states. However, some states require drivers to have medical payments coverage.

While these types of coverage are often required at the state level, the minimum amount of coverage allowed per person and per accident is different depending on your location. To find the exact minimum coverage requirements in your state, you can visit your state insurance department’s website or contact your auto insurer.

Minimum car insurance requirements in each state

Before deciding to purchase minimum coverage auto insurance to meet your state’s insurance requirements, it’s a good idea to review the minimum requirements in your state. Also, remember that you can always purchase more coverage than is required if you want additional financial protection. It’s a good idea to consider getting quotes for multiple levels of coverage before choosing the least amount of auto insurance coverage available in your state to save on auto insurance premiums.

The table below includes the minimum car insurance requirements in all 50 states and Washington DC

Condition Bodily Injury Liability and Property Damage Liability UM/UIM, PIP and MedPay
Alabama 25/50/25 None
Alaska 50/100/25 None
Arizona 25/50/15 None
Arkansas 25/50/25 None
California 15/30/5 None
Colorado 25/50/15 None
Connecticut 25/50/25 25/50 MU/UIM
Delaware 25/50/10 15/30 PIP
Florida 10/20/10 $10,000 PIP
Georgia 25/50/25 None
Hawaii 20/40/10 $10,000 PIP
Idaho 25/50/15 None
Illinois 25/50/20 25/50 CU
Indiana 25/50/25 None
Iowa 20/40/15 None
Kansas 25/50/25 25/50 MU/UIM
$4,500 PIP
Kentucky 25/50/25
Louisiana 30/15/25 None
Maine 50/100/25 50/100 MU / UIM
$2,000 MedPay
Maryland 30/60/15 30/60/15 CU
Massachusetts 20/40/5 20/40 CU
$8,000 PIP
Michigan 50/100/10 Six PIP options: minimum $50,000 for Medicaid members
Minnesota 30/60/10 25/50 MU/UIM
$40,000 PIP
Mississippi 25/50/25 None
Missouri 25/50/25 25/50 MU/UIM
Mountain 25/50/20 None
Nebraska 25/50/25 25/50 MU/UIM
Nevada 25/50/20 None
new hampshire 25/50/25 25/50 CU
$1,000 MedPay
New Jersey 15/30/5* 15/30 MU/UIM
$15,000 PIP
New Mexico 25/50/10 None
New York 25/50/10 25/50 CU
$50,000 PIP
North Carolina 30/60/25 30/60/25 CU
30/60 UIM
North Dakota 25/50/25 25/50 MU/UIM
$30,000 PIP
Ohio 25/50/25 None
Oklahoma 25/50/25 None
Oregon 25/50/20 25/50 MU/UIM
$15,000 PIP
Pennsylvania 15/30/5 $5,000 PIP
Rhode Island 25/50/25 None
South Carolina 25/50/25 25/50/25 CU
South Dakota 25/50/25 25/50 MU/UIM
Tennessee 25/50/15 None
Texas 30/60/25 None
Utah 25/65/15 $3,000 PIP
Vermont 25/50/10 50/100/10 CU
Virginia 30/60/20 None
Washington 25/50/10 None
Washington D.C. 25/50/10 25/50/5 CU
West Virginia 25/50/25 25/50/25 CU
Wisconsin 25/50/10 25/50 CU
Wyoming 25/50/20 None

*Based on the minimum coverage requirements of the standard policy

States with no auto insurance requirements

Traditional auto insurance is not required in all states. Depending on where you live, there may be alternative options to post a deposit or post a bond with your state DMV, which serves as proof of financial responsibility. If you were in an accident, that money would be given to the other driver to compensate you for your losses.

Here are some of the states that require a standard auto insurance policy or financial filing:

  • California: Option to make a deposit of $35,000
  • Florida: Drivers can decline liability insurance by proving a net worth of at least $40,000
  • Mountain: Option to post a bond or deposit of $55,000 in cash or securities

Keep in mind, however, that foregoing traditional auto insurance is often a much more expensive option. The most flexible states for auto insurance alternatives are New Hampshire and Virginia.

In New Hampshire, drivers are not required to have automobile insurance, except in cases where must have an SR-22. In Virginia, drivers can waive car insurance and pay a $500 uninsured driver fee, making it the second-cheapest state for alternative car insurance.

Frequent questions

Is it better to get minimal coverage or full coverage?

Most auto insurance companies sell minimum coverage and full coverage policies. While at least a minimum coverage policy is required in most states, a full coverage policy offers significantly more financial protection. On the other hand, a minimum coverage policy is usually much cheaper than a full coverage policy. If you want more financial protection and have enough to pay for the policy, consider purchasing comprehensive coverage.

What does a full coverage car insurance policy include?

A full coverage auto insurance policy typically includes liability insurance and your state’s minimum coverage requirements (if applicable), plus collision and comprehensive coverage. Collision insurance covers repairs to your vehicle after an accident, while comprehensive coverage covers repairs to your vehicle after a non-collision incident.

How much does car insurance cost?

The cost of auto insurance is different for every driver and depends on a variety of personal factors. Your status, claims history, driving record, and deductibles can affect the cost of your insurance. Bankrate’s 2021 study of quoted annual premiums found that in the US, the average auto insurance premium is $1,674 per year for a full coverage policy and $565 per year for minimum coverage. To find cheaper coverage, it helps to shop around and get quotes from multiple providers.

Is my new car covered by minimum coverage auto insurance?

When you buy a new car, you need to add it to your auto insurance policy. You must purchase a new policy or add the new vehicle to your existing policy to be properly insured. If you buy the car without a loan or lease, you have the option of getting minimum coverage or full coverage insurance. However, if you lease or finance the vehicle, your lender will most likely require you to obtain a full coverage policy and possibly even higher liability limits.

Does my minimum coverage auto insurance cover me in another state?

Yes, your auto insurance policy is valid wherever you drive in the United States. Many policies also remain valid if you drive across the border into Canada. When you buy minimum coverage auto insurance, the policy must meet the coverage requirements in the state where the car is registered. However, there are no restrictions on driving in another state where the minimum requirements are higher.