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Key Takeaways
- All states have different minimum insurance requirements.
- Virginia and New Hampshire are two states that don't mandate car insurance.
- Florida is the only state that needn't require bodily injury liability insurance (BI). While all other states, including Washington DC, needs property damage liability (PD).
- A driver must add additional coverages to the policy depending on their needs as minimum insurance requirement offers minimum protection only.
Car Insurance Laws by State
Most states require you to have auto insurance if you're driving. But, of course, driving without valid auto insurance will earn you hefty penalties and even result in the suspension of your license. In addition, drivers need to get and maintain what is known as a ‘mandated minimum amount of auto insurance from an insurer in case of an accident or damage to another person's property or person. So, what are the minimum insurance requirements?
It is essential to know that states have different minimum insurance requirements. It implies that the auto insurance requirements and coverages suitable for a friend or relative living elsewhere might not be ideal for you. Every state possesses a minimum insurance requirement you need to purchase to be considered legally insured. You need this coverage to drive a car.
But, in a few states, you don't require auto insurance. Instead, you must provide alternative proof of your financial stability, such as a cash deposit with the state, a surety bond, or a certificate of self-insurance. So, here we provide state-by-state requirements for auto insurance below, along with the minimum insurance requirement for each type of coverage and the kind of liability insurance you must carry.
Remember that these are the minimum auto insurance requirements, and depending on your particular needs, you might need to purchase additional coverage.
| State | Bodily Injury Liability (BI) | Property Damage Liability (PD) | Underinsured/uninsured motorist bodily injury liability (UIM BI) | Underinsured/uninsured motorist property damage liability (UIM PD) | Any special exception? |
|---|---|---|---|---|---|
| Alabama | $25,000 per person $50,000 per accident |
$25,000 per accident | No | No | No. Check the Alabama Department of Revenue |
| Alaska | $50,000 per person $100,000 per accident | $25,000 per accident | No | No | No. Check Alaska DMV |
| Arizona | $25,000 per person/ $50,000 per accident | $15,000 per accident | No | No | No. Check the Arizona Department of Motor Vehicles |
| Arkansas | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check Arkansas Insurance Department |
| California | $15,000 per person/ $30,000 per accident | $5,000 per accident | No | No | Yes. Check the California Department of Motor Vehicles. |
| Colorado | $25,000 per person/ $50,000 per accident | $15,000 per accident | No | No | No. Check Rocky Mountain Insurance Information Association |
| Connecticut | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check Connecticut Insurance Department |
| Delaware | $25,000 per person/ $50,000 per accident | $10,000 per accident | No | No | No. Check Delaware Division of Motor Vehicles |
| District of Columbia | $25,000 per person/ $50,000 per accident | $10,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check District of Columbia Department of Motor Vehicles |
| Florida | No | $10,000 per accident | No | No | No. Check the Florida Department of Motor Vehicles |
| Georgia | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check Ga. Department of Insurance Consumer Services Division |
| Hawaii | $20,000 per person/ $40,000 per accident | $10,000 per accident | No | No | No. Check Hawaii Department of Commerce and Consumer Affairs |
| Idaho | $25,000 per person/ $50,000 per accident | $15,000 per accident | No | No | No. Check the Idaho Department of Transportation |
| Illinois | $25,000 per person/ $50,000 per accident | $20,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the Illinois Office of the Secretary of State |
| Indiana | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check the Indiana Department of Insurance |
| Iowa | $20,000 per person/ $40,000 per accident | $15,000 per accident | No | No | Yes. The state doesn't have a compulsory auto insurance law. Check the Financial and Safety Responsibility Act for more information. |
| Kansas | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check Kansas Insurance Department |
| Kentucky | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check Kentucky Transportation Cabinet |
| Louisiana | $15,000 per person/ $30,000 per accident | $25,000 per accident | No | No | No. Check the Louisiana Department of Insurance |
| Maine | $50,000 per person/ $100,000 per accident | $25,000 per accident | $50,000 per person/ $100,000 per accident | No | No. Check the Maine Department of Insurance |
| Maryland | $30,000 per person/ $60,000 per accident | $15,000 per accident | $30,000 per person/ $60,000 per accident | $15,000 | No. Check Maryland Motor Vehicle Administration |
| Massachusetts | $20,000 per person/ $40,000 per accident | $5,000 per accident | $20,000 per person/ $40,000 per accident | No | No. Check Massachusetts Attorney General |
| Michigan | $50,000 per person/ $100,000 per accident | $10,000 per accident | No | No | No. Check the Department of Insurance and Financial Services |
| Minnesota | $30,000 per person/ $60,000 per accident | $10,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the Minnesota Department of Public Safety |
| Mississippi | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check Mississippi Insurance Department |
| Missouri | $25,000 per person/ $50,000 per accident | $10,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the Missouri Department of Revenue |
| Montana | $25,000 per person/ $50,000 per accident | $20,000 per accident | No | No | Yes. Check Montana Motor Vehicle Division |
| Nebraska | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the Nebraska Department of Motor Vehicles |
| Nevada | $25,000 per person/ $50,000 per accident | $20,000 per accident | No | No | No. Check the Nevada Department of Motor Vehicles |
| New Hampshire | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | $25,000 per accident | Yes. Check the New Hampshire Division of Motor Vehicles |
| New Jersey | $15,000 per person/ $30,000 per accident | $5,000 per accident | $15,000 per person/ $30,000 per accident | No | No. Check Department of Insurance & Banking |
| New Mexico | $25,000 per person/ $50,000 per accident | $10,000 per accident | No | No | No. Check New Mexico Motor Vehicle Department |
| New York | $25,000 per person/ $50,000 per accident | $10,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the New York Department of Motor Vehicles |
| North Carolina | $30,000 per person/ $60,000 per accident | $25,000 per accident | $30,000 per person/ $60,000 per accident | $25,000 | No. Check the North Carolina Department of Insurance |
| North Dakota | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check North Dakota Insurance Department |
| Ohio | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | Yes. Check the Ohio Department of Motor Vehicles |
| Oklahoma | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check the Oklahoma Department of Public Safety |
| Oregon | $25,000 per person/ $50,000 per accident | $20,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the Oregon Department of Transportation |
| Pennsylvania | $15,000 per person/ $30,000 per accident | $5,000 per accident | No | No | Yes. Check PennDOT. |
| Rhode Island | $25,000 per person/ $50,000 per accident | $25,000 per accident | No | No | No. Check Rhode Island Division of Motor Vehicles |
| South Carolina | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | $25,000 per accident | No. Check the South Carolina Department of Insurance |
| South Dakota | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check the South Dakota Department of Labor & Regulation |
| Tennessee | $25,000 per person/ $50,000 per accident | $15,000 per accident | No | No | No. Check Tennessee DMV |
| Texas | $30,000 per person/ $60,000 per accident | $25,000 per accident | No | No | No. Check the Texas Department of Insurance |
| Utah | $25,000 per person/ $65,000 per accident | $15,000 per accident | No | No | No. Check Utah Insurance Department |
| Vermont | $25,000 per person/ $50,000 per accident | $10,000 per accident | $50,000 per person/ $100,000 per accident | $10,000 per accident | No. Check the Vermont Department of Motor Vehicles |
| Virginia | $30,000 per person/ $60,000 per accident | $20,000 per accident | $30,000 per person/ $60,000 per accident | $20,000 | No. Check Virginia DMV. |
| Washington | $25,000 per person/ $50,000 per accident | $10,000 per accident | No | No | No. Check Washington State Department of Licensing |
| West Virginia | $25,000 per person/ $50,000 per accident | $25,000 per accident | $25,000 per person/ $50,000 per accident | $25,000 per accident | No. Check West Virginia Division of Motor Vehicles |
| Wisconsin | $25,000 per person/ $50,000 per accident | $10,000 per accident | $25,000 per person/ $50,000 per accident | No | No. Check Wisconsin DMV |
| Wyoming | $25,000 per person/ $50,000 per accident | $20,000 per accident | No | No | No. Check Wyoming DMV |
Minimum requirements for car insurance by state
| Type of Coverage | Mandatory limit | Benefits (what and for whom) |
|---|---|---|
| Bodily injury liability | $15,000-$50,000 per person/$30,000-$100,000 per accident | Injuries to another driver |
| Property damage liability | $5,000-$25,000 per accident | Damage to another driver's car or property |
| Uninsured/underinsured motorist (BI) | $20,000-$50,000 per person/$40,000-$100,000 per accident | Your injuries if the other driver doesn't possess an auto insurance |
| Uninsured/underinsured motorist (PD) | $5,000-$25,000 per accident | Damages to your car if other driver doesn't have auto insurance |
| Personal injury protection (PIP)/Medical benefits | $1,000-$50,000 | If you and your passengers get injured |
- Bodily injury liability: Suppose you are at fault in a collision with another driver. Then your bodily injury liability insurance will help cover the injured party's medical care costs. In addition, if the other motorist sues you for their losses, it might also pay for your legal expenses.
- Property damage liability: It covers other people's property damage that you are responsible for. For instance, if you hit another motorist, your property damage liability insurance would contribute to the cost of repairing their vehicle.
- Uninsured/underinsured motorist: It offers financial protection when you are involved in a collision with an uninsured driver or don't have sufficient insurance to cover your damages.
- Personal injury protection (PIP): No-fault states must provide personal injury protection. Irrespective of who caused the accident, it can cover your medical bills, lost earnings, rehab charges, and other related costs if you get into an accident. Some at-fault states also allow the purchase of this coverage.
- Medical payments coverage (MedPay): Although less comprehensive than PIP, MedPay helps cover your medical costs after an accident. You can buy it as optional coverage in states without PIP. Nevertheless, a few states do mandate that drivers have medical payments insurance.
Exceptions to state minimum car insurance requirements
Some states do not mandate that drivers have insurance. Only individuals guilty of certain vehicle-related offenses like driving while intoxicated must have insurance in New Hampshire, a state famous for not requiring it for most drivers. Other states offer these substitutes.
- Financial responsibility proof: Some states, such as Arizona, permit drivers to skip the mandatory minimum insurance requirement in favor of submitting a bond, certificate of deposit, or cash to the department of motor vehicles. Depending on the state, the payment can be as little as $30,000 or above $100,000.
- Registration for uninsured motorists: Residents in states like Virginia who have a clean driving record can register to drive without insurance for an annual fee. It is not a substitute for auto insurance. But, it permits drivers to operate a car without the minimum insurance requirement. Though this choice is less expensive than car insurance, it provides drivers with zero protection in the event of an accident.
At-fault vs. no-fault states
An at-fault state holds the driver who causes an accident will be liable for the losses of the other party or parties. Either the at-fault driver can pay the other party directly out of pocket, or they can file an insurance claim.
In states with no-fault insurance laws, each driver submits a claim to their insurer after an accident, irrespective of who was at fault.
States that require insurance
Except for New Hampshire and Virginia, all other states require auto insurance with minimum insurance.
States that don't require car insurance
New Hampshire: In New Hampshire, drivers must prove their capacity to cover damage incurred due to an auto collision. The ‘financial responsibility' figure isn't specified. Still, drivers who require insurance must purchase a policy with 25/50/25 limits. In addition, the state may require drivers to obtain insurance in a severe violation, such as a DUI or accident.
Virginia: Virginians can pay an annual ‘uninsured motorist fee of roughly $500. However, paying this fee rather than purchasing insurance leaves you vulnerable during an accident. Virginians should choose minimum coverage because it would cost around the same as the charge for the majority of drivers.
Should I get minimum-coverage or full-coverage auto insurance?
When drivers cannot afford higher insurance limits, they should buy the minimum coverage. Your out-of-pocket expenses could surge if you don't have enough coverage since car accidents are expensive.
Suppose you involve in a severe accident but have inadequate insurance coverage. In that case, another driver, a pedestrian, or the property owner may be able to pursue your savings, future wages, and other assets to recover losses.
Suppose you regularly engage in risky activities and have assets worth more than $100,000. In that case, you may benefit by obtaining an umbrella policy to strengthen your protection further.
The benefits of full coverage auto insurance
Full-coverage auto insurance includes collision, comprehensive, and PIP coverage. States do not mandate that drivers carry collision or comprehensive insurance. However, it may be well worth it for those who can afford it.
None of the required insurance coverages will pay for damage to your car outside of an accident. Therefore, basic auto insurance won't protect your car if you have an accident, a branch falls on the windshield, or a storm floods your area. However, with collision and comprehensive insurance, you can be compensated for the damage these occurrences cause. Your policy may cost more than twice as much with the addition of collision and comprehensive coverages.
If you can afford it and have a modern car, we strongly advise including these coverages in your policy.
Why is it mandatory to have car insurance?
Car insurance is primarily necessary due to your liability, or accountability, for any damage you do. Although comprehensive and collision coverage for your vehicles is optional, most state laws only require you to have liability and property damage insurance. Through state-specific coverage limits, these coverages offer financial assistance to others who get injured by the accident you cause. You must have enough insurance to pay for these damages because your car has the potential to cause bodily harm or property damage.
How to get car insurance in your state
The challenge is always finding cheap car insurance. But, even if you find one, the insurance policy doesn't need to have all the coverage you need. That's when Way.com can help you!
You can visit Way, get multiple insurance quotes, and buy the cheapest one. You can also understand the state's most complex insurance laws, terms, coverages, and discounts with the help of our car insurance agents in each state. Talk to them if you want to find cheap car insurance companies operating in your state.
So, visit Way or use our app to find an insurance policy with the minimum insurance requirement.
INSURANCE AGENT EXPERTS
Auto Insurance Data Methodology
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
DATA SOURCES
Way.com’s Insurance Broker Quote Data
FAQs
Does every state in the US require car insurance?
No. Buying car insurance isn't mandatory in New Hampshire and Virginia.
What insurance is required in most states?
Florida is the only state that needn't require bodily injury liability insurance (BI). While all other states, including Washington DC, needs property damage liability (PD).
Are you required to have car insurance in Utah?
Yes. the state has a minimum insurance requirement of $25,000 per person/ $65,000 per accident in bodily injury liability. The state also mandates a property damage liability of $15,000 per accident.
Is South Dakota a no-fault insurance state?
No. South Dakota is an at-fault state. So, the driver who causes an accident will be liable for the losses of the other party or parties.
In what states is car insurance not mandatory?
New Hampshire and Virginia don't mandate auto insurance.
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