Minimum Auto Insurance Coverage Requirements in Each State
Auto insurance is a legal requirement in almost all states. In order to drive legally, you must purchase a minimum amount of auto insurance, which typically includes liability coverage for bodily injury and property damage. A minimum coverage policy will not provide any protection for your vehicle in the event of an accident.
When purchasing auto insurance, you can choose the type of policy you purchase, either minimum coverage or full coverage. A full coverage policy offers much more protection, although the premium is usually much more expensive than the minimum coverage.
What insurance is required?
The majority of states have minimum auto insurance requirements, with the exception of New Hampshire and Virginia. An active auto insurance policy allows you to drive legally. Any vehicle registered in states with minimum insurance requirements must be insured, regardless of how often you drive or how old the car is. Here are the types of coverage that are generally required:
- Liability for bodily injury (BI): If you cause an accident with another driver, Personal Injury Liability coverage will cover medical expenses related to the injuries of the other driver. It can also cover your legal costs if the other driver sues you for their losses.
- Civil liability for property damage (DP): Property damage liability coverage covers property damage that you cause to others. For example, if you run into another driver, your property damage liability insurance will pay for repairs to their vehicle.
- Coverage of uninsured / underinsured motorists (UM / UIM): Coverage of uninsured and underinsured motorists offers protection in the event of an accident with a driver who is uninsured or who does not have sufficient coverage to pay your losses.
- Injury Protection (PIP): Injury Protection is generally required in no-fault states, but it can be purchased as a rider in no-fault states, depending on your insurer. After an accident, Injury Protection will automatically cover your medical expenses and those of your passenger, regardless of the driver responsible for the accident. It also covers additional expenses resulting from your injuries, such as lost wages or childcare services.
- Medical Payment Coverage (MedPay): Medical Payments covers injuries sustained by you and your passengers as a result of an accident, regardless of fault. It is similar to PIP, but it is less robust and does not cover essential services.
While these types of coverage are often required at the state level, the minimum amount of coverage allowed per person per accident is different depending on your location. To find the exact minimum coverage requirements in your state, you can visit your state’s insurance department website.
Minimum auto insurance requirements in every state
Before purchasing auto insurance, you will need to check your state’s minimum coverage requirements. Just as auto insurance rates vary from state to state, so do minimum coverage requirements. The table below includes the minimum requirements in each state.
|State||Liability for bodily injury and liability for material damage||UM / UIM, PIP and MedPay|
|Connecticut||25/50/25||25/50 UM / UIM|
|Florida||20/10/10||$ 10,000 PIP|
|Hawaii||20/40/10||$ 10,000 PIP|
|Kansas||25/50/25||$ 4,500 PIP|
|Kentucky||25/50/25||$ 10,000 PIP|
|Maine||50/100/25||50/100 UM / UIM
$ 2,000 MedPay
$ 2,500 PIP
$ 8,000 PIP
|Michigan||50/100/10||Six PIP options: minimum $ 50,000 for people insured on Medicaid|
|Minnesota||30/60/10||25/50 UM / UIM
$ 40,000 PIP
|Missouri||25/50/25||25/50 UM / UIM|
|Nebraska||25/50/25||25/50 UM / UIM|
|New Hampshire*||25/50/24||25/50 UM|
|New Jersey||15/30/5||15/30 UM / UIM
$ 15,000 PIP
|new York||25/50/10||25/50 UM
$ 50,000 PIP
|North Carolina||30/60/25||30/60/25 UM / UIM|
|North Dakota||25/50/25||25/50 UM / UIM
$ 30,000 PIP
|Oregon||25/50/20||25/50 UM / UIM
$ 15,000 PIP
|Pennsylvania||15/30/5||$ 5,000 PIP|
|Caroline from the south||25/50/25||25/50/25 UM|
|South Dakota||25/50/25||25/50 UM / UIM|
|Utah||25/65/15||$ 3,000 PIP|
|Washington DC||25/50/10||25/50/5 UM|
|West Virginia||25/50/25||25/50/25 UM|
* New Hampshire and Virginia do not require drivers to purchase auto insurance. The minimums reflect the minimum limits required if auto insurance is purchased.
States with no auto insurance requirements
The only two states that do not have a formal auto insurance requirement are New Hampshire and Virginia. However, drivers in these states may still have to prove some form of financial responsibility in the event of an accident. Drivers must have sufficient funds to compensate another driver for losses, be it property damage, medical bills or lost wages, in the event of a at-fault accident. New Hampshire and Virginia have alternatives that may be necessary for drivers who choose to forgo traditional coverage.
Here are the auto insurance alternatives for New Hampshire and Virginia:
- Proof of financial responsibility: Rather than purchasing a regular auto insurance policy, New Hampshire drivers can file an operator warranty with the state treasurer or the DMV. An operator’s safety checks that the driver has enough money to cover the losses of another driver in the event of a at-fault accident.
- Uninsured motorist costs: Drivers in Virginia are required to pay an uninsured motorist fee of $ 500 to the DMV if they do not purchase a regular auto insurance policy. There is no charge in New Hampshire for not having traditional auto insurance.
Despite the fact that auto insurance is not mandatory in New Hampshire and Virginia, drivers are still encouraged to purchase a standard policy. Without auto insurance, drivers are entirely responsible for compensating another driver for their losses if they cause an accident. Additionally, drivers without comprehensive coverage would have no financial protection for damage to their vehicle or medical bills in the event of covered incidents.
Frequently Asked Questions
Is it better to have minimum coverage or full coverage?
Most auto insurance companies sell minimum and full coverage policies. While at least a minimum coverage policy is required in most states, a comprehensive 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 getting comprehensive coverage.
What does a full coverage auto insurance policy include?
A full coverage auto insurance policy includes liability insurance, as well as collision coverage and full coverage. Collision insurance covers repairs to your vehicle after an accident, while Comprehensive coverage covers repairs to your vehicle after an incident without a collision.
What is no-fault insurance?
No-fault auto insurance, also known as personal injury protection, is generally required in states with no-fault laws. Injury protection will automatically pay your medical bills and those of your passengers after an accident, regardless of who is responsible. For comparison, in states that do not have no-fault laws, the at-fault driver is generally responsible for covering bills related to the other driver’s injuries through personal injury liability coverage.
How much does auto insurance cost?
The cost of auto insurance is different for every driver and it depends on a variety of personal factors. Your condition, insurance history, driving record, and deductible can all affect the cost of your insurance. Bankrate’s 2021 Annual Listed Premiums Study found that in the United States, 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.