Understanding Minimum Car Insurance Requirements

What Are the Minimum Car Insurance Requirements?
State minimum insurance requirements are the car insurance requirements for each state, by law for their residents. These minimum requirements for each state can be found at the state insurance commissioner's website, and we have included them here for your easy reference, just scroll down to your state and check it out.

As you go down the list, you will notice that driving without insurance is illegal in almost every state, so if you own a car, you have to have insurance.

What Do You Get With Minimum Car Insurance?
If you own a car in the United States you will need to get car insurance that meets the legal requirements for minimum car insurance based on your state law. Each state is different which is why it is important to check for your own state requirements and contact your insurance representative if you have questions.

Car Insurance Is Compulsory in Most States
If you live in New Hampshire, although the state does not require you to purchase car insurance in order to legally drive, the law requires you to be financially responsible:

to compensate anyone you injure as a result of your driving
holds you financially responsible for property damage

Skipping out on the insurance is not recommended, this only leaves you financially vulnerable. Virginia and Arizona are also among the states that offer an alternative approach to car insurance requirements. See the sections below on Arizona, New Hampshire and Virgina for added details.

What's Included in Minimum Car Insurance Coverage Required By Your State
There are 4 basic types of coverage that may be included in State Minimum Car Insurance Requirements.

1. Bodily Injury Liability

Coverage as defined per person and per accident.

2. Property Damage Liability

Property Damage Liability is defined per accident
Property Damage does not cover damage to your own car, it is meant to cover damage that you become responsible for

3. Personal Injury Protection (PIP or No-fault)

Coverage as defined per person and per accident.
May Include limits for: Medical Expenses, Disability or loss of income, in-home services, Rehabilitation, and funeral burial or cremation costs, as defined in your specific policy wording which varies by state for the minimum requirements.

4. Uninsured/Underinsured Motorist Protection

Coverage as defined per person and per accident.

Do All States Require Full Coverage?

Many states only require the first two coverages listed above:

Bodily Injury Liability
Property Damage Liability

Refer to the list below to understand what is required for your state's minimum car insurance requirements.

What Do the Numbers Mean in the Minimum State Car Insurance Requirements?
The numbers represent the limits in your car insurance policy, for example:

If the numbers are 20/40/15 then you have:

$20,000 per person for bodily injury
$40,000 per accident for bodily injury
$15,000 per accident for property damage

These same numbers may also be expressed as $20,000/$40,000/$15,000.

Are Minimum State Insurance Requirements Enough?
This is a good question.

Why does your insurance agent tell you that the minimum is not enough? It all depends on how much personal risk you are willing to take. Insurance is meant to protect your current and future assets. If you do not have enough car insurance to cover damages caused to people or property when you have an accident, then you might get sued for the additional costs. Even if you do not have the cash in the bank, or have assets that can pay for the damages, your future earnings could also be affected. Why take the risk?

Want to understand how much insurance you should get for your car? See this example:

How Minimum State Car Insurance Coverages Apply in a Claim
Although keeping up with the state minimum requirement is what is needed to drive legally in your state for car insurance, purchasing the state minimum insurance requirements is usually not the best choice.

Remember that there are other ways to save money and get more discounts on your car insurance, if you make sure you get all the discounts you are entitled to, and buy your insurance from a good car insurance company then you can afford more than the state minimum insurance.

What Do the Numbers Mean in the Minimum State Car Insurance Coverages?
Let us look at an example:

If your state minimum insurance requirements are 25/50/20.

The first two numbers refer to bodily injury liability limits and the third number refers to the property damage liability limit.

The first two numbers in 25/50/20 mean that in an accident each person injured would receive a maximum of up to $25,000 with a maximum limit of $50,000 per accident.

To understand this better, imagine if two people needed $25,000, then the maximum of $50,000 per accident would be sufficient. However, what of three people were injured, needing $25,000 each. The minimum would not be sufficient. In a case like this, you could end up in a difficult situation where whoever files first could get first access to the $50,000 limit and you may be sued for the rest if the accident was your fault.

The last number refers to the total coverage per accident for property damage, which in this case would be $20,000.

Imagine if you hit the side of a house or an electrical pole, and the resulting damage exceeded $20,000. In this scenario, the minimum car insurance requirement might fall short and you could be sued for the difference.

Minimum Car Insurance Limits May Not Be Enough to Protect You
It is easy to see how these limits may not cover all the liability and property damage needs. Now that you understand what the numbers mean, check the listing of each state's minimum insurance requirements. Look up the state you live in to see if you feel comfortable with the minimum numbers.

It does not cost much more to raise your car insurance limits. Make sure you are adequately protected by contacting your insurance agent to discuss your options, choose a good car insurance company for your area, and find ways to save money on your auto insurance without putting your financial future at risk.

Full List of Minimum Car Insurance Required By Law in Your State and Exceptions

Alabama

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Alaska

$50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$25,000 property damage liability per accident

Arizona
Arizona has a special condition around legal requirements to drive your car. All drivers must show financial responsibility. You do not have to have insurance, however, if you choose to not purchase insurance you will have to be ready to put up a $40,000 bond to prove you can pay for damages resulting from an accident. Naturally, for most people, buying the minimum car insurance makes a lot more financial sense. Here are the Arizona minimum requirements if you choose to purchase insurance instead of put up a bond:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Arkansas

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$10,000 property damage liability per accident

California

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$5,000 property damage liability per accident

Colorado

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident

Connecticut

$20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$10,000 property damage liability per accident
$20,000 uninsured/underinsured motorist coverage per person
$40,000 uninsured/underinsured motorist coverage per accident

Delaware

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$10,000 property damage liability per accident

Florida

$10,000 property damage liability per accident
$10,000 personal injury protection

Georgia

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Hawaii

$20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$10,000 property damage liability per accident
$10,000 personal injury protection

Idaho

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident

Illinois

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident

Indiana

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident

Iowa

$20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$15,000 property damage liability per accident

Kansas

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident

Personal injury protection ($4,500 in medical expenses, up to $900 per month for disability or loss of income, $25 per day for in-home services,$4,500 for rehabilitation, $2,000 for funeral burial or cremation costs)

Kentucky

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$10,000 personal injury protection

Louisiana

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$25,000 property damage liability per accident

Maine

$50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$25,000 property damage liability per accident
$50,000 uninsured motorist coverage per person
$100,000 uninsured motorist coverage per accident
$2,000 medical payments coverage

Maryland

$30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$15,000 property damage liability per accident

Massachusetts

$20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$5,000 property damage liability per accident
$20,000 uninsured motorist coverage per person
$40,000 uninsured motorist coverage per accident
$8,000 personal injury protection

Michigan

$20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$10,000 property damage liability per accident

Personal injury protection (unlimited) Michigan offers no-fault insurance with mandatory coverages
$1 million property protection (PPI). PPI pays up to $1 million for damage your vehicle does in Michigan to other people's property, such as buildings and fences.

Minnesota

$30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$40,000 personal injury protection

Mississippi

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Missouri

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident

Montana

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident

Nebraska

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident

Nevada

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$10,000 property damage liability per accident

New Hampshire
Car insurance is not mandatory in New Hampshire. There is no minimum car insurance requirement for the State of New Hampshire, however, state law does require you to pay for any bodily injury or property damage arising from your operation of a vehicle that you own.

So, although there is no law forcing you to purchase auto insurance in New Hampshire, there is a law which will hold you responsible for paying for damages. You should purchase at least the minimum car insurance to protect yourself and your family.

These are the minimum car insurance limits available when you do decide to purchase insurance:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$25,000 uninsured/underinsured motorist property damage coverage
$1,000 medical payments coverage

New Jersey

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$5,000 property damage liability per accident
$15,000 personal injury protection

New Mexico

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident

New York

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$50,000 liability for death per person
$100,000 liability for death per accident
$10,000 property damage liability per accident
$50,000 personal injury protection
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident

North Carolina

$30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$25,000 property damage liability per accident
$30,000 uninsured motorist coverage per person
$60,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage per accident

North Dakota

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$30,000 personal injury protection

Ohio

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Oklahoma

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

Oregon

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$15,000 personal injury protection

Pennsylvania

$15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$5,000 property damage liability per accident
$5,000 medical benefits

Rhode Island

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident

South Carolina

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage

South Dakota

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident

Tennessee

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident

Texas

$30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$25,000 property damage liability per accident

Utah

$25,000 bodily injury liability per person
$65,000 bodily injury liability per accident
$15,000 property damage liability per accident
$3,000 personal injury protection

Virginia
Virgina has special conditions around car insurance. You do not necessarily have to buy car insurance, according to the DMV, Virginia law requires that all drivers have a way to pay for injuries or property damage resulting from a car accident. Minimum car insurance is one way to meet this requirement. These are the Virginia minimums:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident

Vermont

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$50,000 uninsured/underinsured motorist coverage per person
$100,000 uninsured/underinsured motorist coverage per accident
$10,000 uninsured/underinsured motorist property damage coverage per accident

Washington

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident

Washington D.C.

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$5,000 uninsured/underinsured motorist property damage coverage per accident

West Virginia

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage

Wisconsin

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident

Wyoming

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident

Understanding Minimum Car Insurance Requirements

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