Minimum Car Insurance Requirements by State: How Much Do You Need?
Each state sets its own minimum auto insurance coverage requirements.
In order to drive legally, you'll need to have car insurance with coverage limits that meet your state's minimum requirements. It's also usually a good idea to get more coverage if you can.
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Minimum car insurance limits in each state
States require drivers to have certain kinds of coverage at different coverage amounts. Most commonly, you'll need coverage that pays for the medical costs of the other driver and their passengers if you cause an accident, called bodily injury liability insurance. You'll also probably need coverage for damage to another person's car, home or other belongings if you cause an accident, called property damage liability.
Some states also require extra coverage that protects you from drivers who don't have insurance, called uninsured motorist coverage. You might also need to buy coverage to protect yourself and your passengers from injuries, called personal injury protection (PIP) coverage.
State |
BI
|
PD
|
UIM
|
|---|---|---|---|
| Alabama | $25,000 per person; $50,000 per accident | $25,000 per accident | None |
| Alaska | $50,000 per person; $100,000 per accident | $25,000 per accident | None |
| Arizona | $25,000 per person; $50,000 per accident | $15,000 per accident | None |
| Arkansas | $25,000 per person; $50,000 per accident | $25,000 per accident | None |
| California | $30,000 per person; $60,000 per accident | $15,000 per accident | None |
- * Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Utah: Require that you buy personal injury protection (PIP) coverage.
- ** Maine, New Hampshire, Pennsylvania: Maine and New Hampshire require "medical payments coverage," while Pennsylvania requires "medical benefits coverage." Both work like PIP.
- *** Michigan: State requires $1 million of property protection insurance (PPI), which acts like PIP but for property damage instead of bodily injury.
- ^ New Hampshire: Car insurance is not required in New Hampshire, but if you opted for it (or were forced to get it), these would be the minimum requirements.
- ^^ New York: Also comes with an extra $50,000 per person and $100,000 per accident in the event of a death in an accident.
- † Connecticut, Kansas, Maine, Minnesota, North Carolina, North Dakota, South Dakota, Vermont, Virginia: Also require underinsured motorist insurance in addition to uninsured motorist.
Insurance companies won't let you buy less insurance than the minimum coverage required in your state. So you don't need to worry about going below these limits when you're getting car insurance quotes.
What types of car insurance do you need to have?
Typically, you'll at least need bodily injury and property damage liability coverage.
In some states, you might also need coverage to protect yourself from drivers who don't have insurance, and to pay for medical costs for you or your passengers after an accident.
Required car insurance coverage types
- Bodily injury liability covers hospital bills and other injury-related costs for other people after an accident you caused. It may also pay for legal fees if you get sued.
- Property damage liability pays to repair or replace the other driver's car or other belongings if you cause an accident.
- Uninsured and underinsured motorist covers injuries to yourself and your passengers plus damage to your car if you get into an accident and the other driver doesn't have insurance or their coverage limits don't cover the full cost of your bills.
- Personal injury protection (PIP) covers injuries to yourself and your passengers after an accident.
In every state but New Hampshire, you need to have liability coverage. But, only some states require drivers to carry underinsured, uninsured and personal injury protection coverage.
Which states don't require car insurance?
New Hampshire is the only state that doesn't require drivers to carry car insurance.
In New Hampshire, you only need to show you can pay for damage after a car accident. The state doesn't list a specific amount you need in savings, but the minimum insurance you can buy in New Hampshire is $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $25,000 of property damage liability, often written as 25/50/25 coverage.
You would also need $1,000 in medical payments coverage and $25,000 per person and $50,000 per accident in uninsured motorist bodily injury (UMBI) coverage. That means you'll likely need to have enough money to meet those limits.
You may have to get insurance if you have a DUI or an accident on your record.
Some states let you self-insure with a cash deposit or bond instead of carrying car insurance. But, the bond amount is typically high. For example, in California, you'd need to give the state $75,000 as a bond to self-insure.
Plus, you have little in the way of other protections. For example, if you get in an accident, you have to negotiate with the other driver and likely their insurance company on your own.
It's usually not a good idea to self-insure.
Should I get minimum or full coverage auto insurance?
It's a good idea to get full coverage auto insurance if you have a newer car or your vehicle is worth more than $5,000.
Full coverage car insurance adds extra types of coverage to a minimum car insurance policy, including protection for your own car, called comprehensive and collision, and sometimes extras like roadside assistance.
- Collision coverage pays for damage to your car after a crash.
- Comprehensive coverage pays for damage to your car caused by anything other than a crash, such as vandalism, a storm or a fallen branch.
Plus, a full coverage policy may also include personal injury protection (PIP) and underinsured and uninsured coverage, which aren't required in every state.
It makes sense to only have minimum auto insurance if you can easily afford to pay to replace your car and pay for medical bills for yourself and any passengers in your car using your savings. Otherwise, you may struggle to cover expensive repairs if you get into an accident and you can't rely on the other driver's insurance.
Lenders almost always require collision and comprehensive insurance if you're financing or leasing your vehicle.
You should also consider raising your insurance limits beyond your state's minimum requirements. That's because you're responsible for any costs beyond your insurance limits, and most state minimums would fall short if you got into a serious accident. For example, most states only require that you have $25,000 of property damage liability. If you got into an accident with a luxury car, you might have to pay $50,000 or more.
If you want more coverage than the maximum limits allowed by your car insurance policy, consider getting an umbrella policy. Umbrella policies offer extra liability protection with coverage limits typically starting at $1 million and going up to $5 million.
Frequently asked questions
What does minimum coverage car insurance cover?
Minimum coverage car insurance requirements differ by state, but they typically cover injuries and property damage you cause to other people after a crash. Some states also require that you get other types of coverage like personal injury protection (PIP) and uninsured and underinsured motorist coverage.
Is it better to get minimum coverage or full coverage?
It's better to get full coverage car insurance unless your car costs less than $5,000 or is more than 10 years old. A minimum coverage policy typically only pays for injuries and damage that you cause to other people, while a full coverage policy also may cover damage to yourself, your passengers and your car.
What state has no car insurance requirements?
New Hampshire is the only state that doesn't require drivers to have car insurance. In some areas, you can self-insure, but you have to deposit a large sum of money with your state government to do so.
Sources and methodology
Auto insurance rules and requirements were gathered from each state's official government website.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
