Minimum Car Insurance Requirements by State
Auto insurance is a legal requirement in nearly every U.S. state. Each state sets minimum coverage requirements to ensure drivers can pay for damages or injuries they may cause in an accident. Understanding these requirements is essential for compliance, financial protection, and avoiding penalties.
This guide provides a state-by-state overview of minimum car insurance requirements, including liability coverage, optional protections, penalties for non-compliance, and tips to determine adequate coverage.
What is Minimum Car Insurance?
Minimum car insurance refers to the least amount of coverage legally required by a state. Most states require liability insurance, which covers:
- Bodily Injury Liability (BIL): Medical expenses, lost wages, and legal costs for people injured in an accident you cause
- Property Damage Liability (PDL): Repairs for property damage you cause
Some states also require:
- Personal Injury Protection (PIP) or Medical Payments Coverage
- Uninsured/Underinsured Motorist Coverage
Meeting the minimum satisfies legal requirements but may not fully protect you financially in severe accidents.
Why Minimum Coverage May Not Be Enough
- State minimum limits are often low and may not cover major accidents
- Serious accidents can result in out-of-pocket expenses exceeding policy limits
- Higher coverage limits provide financial protection for assets like savings, home, or investments
For example, if your state minimum is $25,000 per person bodily injury and you cause an accident costing $100,000, you would pay $75,000 out-of-pocket.
State-by-State Minimum Car Insurance Requirements
Auto insurance is mandatory in nearly every U.S. state. Each state sets minimum coverage requirements to protect drivers, passengers, and property in case of an accident. Knowing these minimums is crucial to stay legal, financially protected, and avoid penalties.
While minimum coverage meets the law, it may not fully protect you in severe accidents. Optional coverage like collision, comprehensive, and uninsured motorist insurance can provide extra protection.
Below is a complete state-by-state table of minimum car insurance requirements, including bodily injury liability (BIL), property damage liability (PDL), and personal injury protection (PIP) if applicable.
| State | Bodily Injury Liability (per person / per accident) | Property Damage Liability | PIP / MedPay | Notes |
|---|---|---|---|---|
| Alabama | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Alaska | $50,000 / $100,000 | $25,000 | Optional | Liability minimum |
| Arizona | $25,000 / $50,000 | $15,000 | Optional | Liability minimum |
| Arkansas | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| California | $15,000 / $30,000 | $5,000 | Optional | Liability minimum |
| Colorado | $25,000 / $50,000 | $15,000 | Optional | Liability minimum |
| Connecticut | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Delaware | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| Florida | $10,000 / — | $10,000 | $10,000 | PIP required |
| Georgia | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Hawaii | $20,000 / $40,000 | $10,000 | $10,000 | PIP required |
| Idaho | $25,000 / $50,000 | $15,000 | Optional | Liability minimum |
| Illinois | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
| Indiana | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| Iowa | $20,000 / $40,000 | $15,000 | Optional | Liability minimum |
| Kansas | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Kentucky | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| Louisiana | $15,000 / $30,000 | $25,000 | Optional | Liability minimum |
| Maine | $50,000 / $100,000 | $25,000 | Optional | Liability minimum |
| Maryland | $30,000 / $60,000 | $15,000 | Optional | Liability minimum |
| Massachusetts | $20,000 / $40,000 | $5,000 | $8,000 | PIP required |
| Michigan | $50,000 / $100,000 | $10,000 | $50,000 | PIP required |
| Minnesota | $30,000 / $60,000 | $10,000 | Optional | Liability minimum |
| Mississippi | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Missouri | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Montana | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
| Nebraska | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Nevada | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
| New Hampshire | None (Proof of financial responsibility required) | — | Optional | Uninsured motorists required |
| New Jersey | $15,000 / $30,000 | $5,000 | $15,000 | PIP required |
| New Mexico | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| New York | $25,000 / $50,000 | $10,000 | $50,000 | PIP required |
| North Carolina | $30,000 / $60,000 | $25,000 | Optional | Liability minimum |
| North Dakota | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Ohio | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Oklahoma | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Oregon | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
| Pennsylvania | $15,000 / $30,000 | $5,000 | $5,000 | PIP required |
| Rhode Island | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| South Carolina | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| South Dakota | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Tennessee | $25,000 / $50,000 | $15,000 | Optional | Liability minimum |
| Texas | $30,000 / $60,000 | $25,000 | Optional | Liability minimum |
| Utah | $25,000 / $65,000 | $15,000 | Optional | Liability minimum |
| Vermont | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| Virginia | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
| Washington | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| West Virginia | $25,000 / $50,000 | $25,000 | Optional | Liability minimum |
| Wisconsin | $25,000 / $50,000 | $10,000 | Optional | Liability minimum |
| Wyoming | $25,000 / $50,000 | $20,000 | Optional | Liability minimum |
Note: Coverage limits may change over time. Always check state DMV or insurance department websites for the latest requirements.
Optional and Recommended Coverage
Even with minimum coverage, consider these additional protections:
- Collision Coverage – Protects your own car in accidents
- Comprehensive Coverage – Covers theft, vandalism, and natural disasters
- Uninsured/Underinsured Motorist Coverage – Covers damages caused by drivers without insurance
- Higher Liability Limits – Protects personal assets in major accidents
- Medical Payments Coverage / PIP – Covers your medical costs
Penalties for Driving Without Insurance
- Fines and Fees: Monetary penalties vary by state
- License Suspension: Driving privileges may be suspended
- SR-22 Requirement: Some states require proof of future insurance
- Vehicle Impoundment: Possible in severe cases
Driving without insurance can lead to financial ruin if involved in an accident, so even minimum coverage is critical.
Tips for Choosing Coverage
- Understand Your State Requirements – Know minimum liability limits
- Assess Your Financial Situation – Higher limits may protect assets
- Compare Multiple Insurers – Premiums, service quality, and claims support vary
- Consider Optional Coverage – Tailor your policy to your vehicle and risk
- Review Annually – Life changes and vehicle value may affect coverage needs
- Bundle Policies – Homeowners or renters insurance can reduce premiums
Factors That Affect Premiums
- Driver age, gender, and driving history
- Vehicle type, age, and safety features
- Location and risk factors (urban vs rural)
- Annual mileage and commuting distance
- Credit score in states where allowed
Conclusion
Knowing minimum car insurance requirements by state is essential for legal compliance and financial protection. While minimum coverage satisfies the law, most drivers benefit from higher liability limits and optional coverage to reduce financial risk.
Key takeaways:
- Minimum insurance varies by state; most require liability insurance, some require PIP or MedPay
- State minimums often do not fully protect against serious accidents
- Optional coverage like collision, comprehensive, and uninsured motorist is worth considering
- Maintain coverage at all times to avoid fines, penalties, and personal liability
By understanding your state’s minimum requirements and assessing your personal risk, you can choose the right policy to protect yourself, your vehicle, and your assets.