Minimum car insurance requirements are the legally mandated levels of coverage each state requires drivers to carry, typically including liability insurance. They are essential for legal compliance, financial protection, and peace of mind in the event of an accident.
It’s important to have car insurance to protect yourself, your family and your assets if you’re in an accident. From a fender bender to a serious accident that causes multiple injuries, auto insurance protects the policyholder and their financial health.
Despite this, people still choose to go without car insurance coverage – ranging from 3.1% in New Jersey to 29.4% in Mississippi, according to the National Association of Insurance Commissioners. This drives up rates for all drivers in that state.
At the very least, it’s important to get the minimum liability requirements set in each state to remain legally compliant. Car insurance requirements vary by state, so how much you’re legally required to buy depends on where you live.
Key Takeaways
- Most states require 25/50 bodily injury liability coverage, but drivers should purchase coverage to higher limits.
- We recommend liability limits be set around 100/300/100 per accident.
- The average annual rate for a state minimum-only liability policy is $502; the monthly rate is $42.
What is the state minimum for car insurance?
Drivers can learn their state’s minimum car insurance rates by looking at the Department of Motor Vehicles’ website or the table of rates below. To drive legally, you must show proof of insurance for the minimum requirements in your state.
They can always purchase coverage at higher rates, but if they purchase less coverage than required – or buy no coverage – they may put themselves and others at financial risk.
See the minimum insurance requirements in each state in the table below.
| State | Minimum car insurance limits | Additional requirement |
|---|---|---|
| Alabama | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Alaska | $50,000 bodily injury per person$100,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Arizona | $25,000 bodily injury per person$50,000 bodily injury per accident$15,000 property damage per accident | Not required |
| Arkansas | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| California | $30,000 bodily injury per person$60,000 bodily injury per accident$15,000 property damage per accident | Not required |
| Colorado | $25,000 bodily injury per person$50,000 bodily injury per accident$15,000 property damage per accident | Not required |
| Connecticut | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident |
| Delaware | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per acciden | $15,000 personal injury per person$30,000 personal injury per accident |
| Florida | $10,000 property damage liability | $10,000 personal injury protection |
| Georgia | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Hawaii | $20,000 bodily injury per person$40,000 bodily injury per accident$10,000 property damage per accident | $10,000 personal injury protection |
| Idaho | $25,000 bodily injury per person$50,000 bodily injury per accident$15,000 property damage per accident | Not required |
| Illinois | $25,000 bodily injury per person$50,000 bodily injury per accident$20,000 property damage per accident | $25,000 uninsured motorist bodily injury per person$50,000 uninsured motorist bodily injury per accident |
| Indiana | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Iowa | $20,000 bodily injury per person$40,000 bodily injury per accident$15,000 property damage per accident | Not required |
| Kansas | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident$4,500 per person – medical expenses$900 per month for one year – disability/loss of income$25 per day – substitution benefits$2,000 – funeral expenses$4,500 – rehabilitation expenses$900 per month for one year – disability/loss-of-income survivor benefits$25 per day for up to one year – substitution benefits |
| Kentucky | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $10,000 personal injury protection |
| Louisiana | $15,000 bodily injury per person$30,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Maine | $50,000 bodily injury per person$100,000 bodily injury per accident$25,000 property damage per accident | $2,000 per person in medical payments coverage$50,000 uninsured/underinsured motorist bodily injury per person$100,000 uninsured/underinsured motorist bodily injury per accident |
| Maryland | $30,000 bodily injury per person$60,000 bodily injury per accident$15,000 property damage per accident | $2,500 personal injury protection$30,000 uninsured motorist bodily injury per person$60,000 uninsured motorist bodily injury per accident$15,000 uninsured motorist property damage per accident |
| Massachusetts | $20,000 bodily injury per person$40,000 bodily injury per accident$5,000 property damage per accident | $8,000 personal injury protection$20,000 uninsured motorist bodily injury per person$40,000 uninsuredmotorist bodily injury per accident |
| Michigan | $20,000 bodily injury per person$40,000 bodily injury per accident$10,000 property damage per accident | $1 Million of property protection coverage$50,000 to no limit Personal injury protection |
| Minnesota | $30,000 bodily injury per person$60,000 bodily injury per accident$10,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident$40,000 personal injury protection per person, per accident |
| Mississippi | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Missouri | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured motorist injury per person$50,000 uninsured motorist bodily injury per accident |
| Montana | $25,000 bodily injury per person$50,000 bodily injury per accident$20,000 property damage per accident | Not required |
| Nebraska | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident |
| Nevada | $25,000 bodily injury per person$50,000 bodily injury per accident$20,000 property damage per accident | Not required |
| New Hampshire | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $1,000 medical payments$25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident |
| New Jersey | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 bodily injury per person$50,000 bodily injury per accident$15,000 personal injury protection |
| New Mexico | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | Not required |
| New York | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | $25,000 uninsured motorist bodily injury per person$50,000 uninsured motorist bodily injury per accident$50,000 personal injury protection |
| North Carolina | $30,000 bodily injury per person$60,000 bodily injury per accident$25,000 property damage per accident | $30,000 uninsured motorist bodily injury per person$60,000 uninsured motorist bodily injury per accident$25,000 uninsured motorist property damage per accident |
| North Dakota | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident$30,000 personal injury protection per person |
| Ohio | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Oklahoma | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Oregon | $25,000 bodily injury per person$50,000 bodily injury per accident$20,000 property damage per accident | $25,000 uninsured motorist bodily injury protection per person$50,000 uninsured motorist bodily injury protection per accident$15,000 personal injury protection per person |
| Pennsylvania | $15,000 bodily injury per person$30,000 bodily injury per accident$5,000 property damage per accident | $5,000 medical benefits |
| Rhode Island | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| South Carolina | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured motorist bodily injury per person$50,000 uninsured motorist bodily injury per accident$25,000 uninsured motorist property damage per accident |
| South Dakota | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident |
| Tennessee | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Texas | $30,000 bodily injury per person$60,000 bodily injury per accident$25,000 property damage per accident | Not required |
| Utah | $30,000 bodily injury per person$65,000 bodily injury per accident$25,000 property damage per accident | $3,000 personal injury protection |
| Vermont | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | $50,000 uninsured/underinsured motorist bodily injury per person$100,000 uninsured/underinsured motorist bodily injury per accident$10,000 uninsured motorist property damage per accident(subject to a $150 deductible) |
| Virginia | $50,000 bodily injury per person$100,000 bodily injury per accident$25,000 property damage per accident | $50,000 bodily injury per person$100,000 bodily injury per accident$25,000 property damage per accident |
| Washington | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | Not required |
| District of Columbia | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | $25,000 uninsured motorist bodily injury per person$50,000 uninsured motorist bodily injury per accident$5,000 uninsured motorist property damage per accident |
| West Virginia | $25,000 bodily injury per person$50,000 bodily injury per accident$25,000 property damage per accident | $25,000 uninsured/underinsured motorist bodily injury per person$50,000 uninsured/underinsured motorist bodily injury per accident$25,000 uninsured/underinsured motorist property damage per accident |
| Wisconsin | $25,000 bodily injury per person$50,000 bodily injury per accident$10,000 property damage per accident | $25,000 uninsured motorist bodily injury per person$50,000 uninsured motorist bodily injury per accident$1000 per person medical payments coverage |
| Wyoming | $25,000 bodily injury per person$50,000 bodily injury per accident$20,000 property damage per accident | Not required |
After reviewing the minimum auto insurance requirements for your state, you may have questions about the terms used in the table – see below.
- BI: Bodily injury coverage
- PD: Property damage coverage
- PIP: Personal injury protection
- MedPay: Medical Payments coverage
- UM/UIM: Uninsured and underinsured motorists
- UM BI: Uninsured motorist bodily injury
- UIM BI: Underinsured motorist bodily injury
- UMPD: Underinsured motorist property damage
- FR: Financial responsibility
How much state minimum car insurance costs
The minimum car insurance costs anywhere from $260 to $993 in states across the U.S. GEICO has the cheapest state minimum liability premiums for all consumers. USAA has the most affordable rates overall, but is only available for members of the military community and their families.
How much does state minimum car insurance cost in every state?
Iowa and Wyoming have the cheapest minimum insurance coverage in the U.S. The most expensive states are Florida and New Jersey when it comes to state minimum insurance coverage. See more rates in the table below.
| State | Annual state minimum liability premiums | Monthly state minimum liability premiums |
|---|---|---|
| Alabama | $433 | $36 |
| Alaska | $398 | $33 |
| Arizona | $516 | $43 |
| Arkansas | $397 | $33 |
| California | $551 | $46 |
| Colorado | $437 | $36 |
| Connecticut | $704 | $59 |
| Delaware | $788 | $66 |
| District of Columbia | $558 | $46 |
| Florida | $993 | $83 |
| Georgia | $577 | $48 |
| Hawaii | $396 | $33 |
| Idaho | $357 | $30 |
| Illinois | $421 | $35 |
| Indiana | $417 | $35 |
| Iowa | $260 | $22 |
| Kansas | $434 | $36 |
| Kentucky | $606 | $51 |
| Louisiana | $722 | $60 |
| Maine | $335 | $28 |
| Maryland | $727 | $61 |
| Massachusetts | $511 | $43 |
| Michigan | $604 | $50 |
| Minnesota | $475 | $40 |
| Mississippi | $463 | $39 |
| Missouri | $488 | $41 |
| Montana | $350 | $29 |
| Nebraska | $331 | $28 |
| Nevada | $720 | $60 |
| New Hampshire | $397 | $33 |
| New Jersey | $853 | $71 |
| New Mexico | $421 | $35 |
| New York | $731 | $61 |
| North Carolina | $476 | $40 |
| North Dakota | $349 | $29 |
| Ohio | $362 | $30 |
| Oklahoma | $408 | $34 |
| Oregon | $641 | $53 |
| Pennsylvania | $375 | $31 |
| Rhode Island | $646 | $54 |
| South Carolina | $720 | $60 |
| South Dakota | $307 | $26 |
| Tennessee | $442 | $37 |
| Texas | $572 | $48 |
| Utah | $582 | $49 |
| Vermont | $306 | $25 |
| Virginia | $428 | $36 |
| Washington | $438 | $36 |
| West Virginia | $510 | $43 |
| Wisconsin | $365 | $30 |
| Wyoming | $288 | $24 |
How much does minimum liability car insurance cost by company?
GEICO is the cheapest company for the state minimum liability premiums, followed by State Farm, USAA and Progressive. Travelers was the most expensive. See the table below for more rates.
| Company | Annual state minimum liability premiums | Monthly state minimum liability premiums |
|---|---|---|
| GEICO | $405 | $34 |
| State Farm | $497 | $41 |
| USAA* | $335 | $28 |
| Progressive | $549 | $46 |
| Allstate | $700 | $58 |
| Farmers | $701 | $58 |
| Nationwide | $532 | $44 |
| Travelers | $506 | $42 |
Do all states require car insurance?
All states set minimum liability insurance requirements. New Hampshire is the only state that doesn’t require car insurance.
Most states require individuals to purchase bodily injury liability insurance for an individual and all persons in an accident; some states also set minimum liability requirements for property damage. And there’s more – in some states, individuals additionally need to purchase insurance for medical payments, uninsured motorists and underinsured motorists.
Which states don’t require car insurance?
New Hampshire allows residents to forego car insurance as long as they can prove they have enough money to cover the expenses and costs if they are in an at-fault accident. If they cannot provide proof of this and drive without insurance, their driving privileges in the state could be suspended.
What happens if I don’t meet my state’s minimum car insurance requirements?
The consequences of not meeting the state minimum car insurance requirements vary, but generally, the risk may not be worth the headache of ignoring the law. In New Mexico, drivers can have their registration suspended if the state’s Motor Vehicle Department discovers drivers lack the required minimum car insurance requirements. To reinstate it in New Mexico, drivers must show proof of insurance and pay a $30 fee.
In Illinois, drivers are mandated to meet the state minimum car insurance requirements – an Electronic Insurance Verification process verifies policies twice a year. Drivers not meeting the state’s minimum requirements or not having proof of insurance will be sent warnings; on the second verification attempt, drivers will be sent a registration suspension letter.
In short, drivers could face suspended registration or even a suspended driver’s license. And, if an accident occurs and the at-fault driver has no insurance or no way to pay for damages, they could see their savings and finances drained if they cannot cover expenses themselves.
Should I get minimum coverage or full-coverage car insurance?
Minimum coverage protects drivers at the minimum amount; this could mean that a driver who purchases minimum coverage does not have enough to be protected in an accident.
In many states, the state minimum car insurance rates are 25/50/25, which refers to $25K of bodily injury insurance per person, $50K per accident and $25K of property damage protection.
“Younger drivers may be able to get away with carrying just the minimum limits if they are trying to save on money,” says Lauren McKenzie, insurance broker/agent with A Plus Insurance in Sierra Vista, Arizona.“
Drivers can also talk with their insurance provider to see what discounts they may be eligible for, and also go over the unnecessary additional coverages they may not need to help save money.
Our take: State minimum car insurance coverage
Those drivers with only the state minimum liability insurance might not be sufficient to cover injuries and damages in an accident. If expenses for an accident exceed the coverage amount, the insured will be liable for the damages. Without coverage, you’ll have to pay out-of-pocket or may need to dig into your savings account, investments or assets.
Insure editors recommend purchasing 100/300/100 liability insurance, referring to a minimum of $100K of bodily injury protection for an individual, $300K per accident and $100K for property damage.
“Most drivers I would recommend carrying higher liability limits than what the state requires for minimum limits for several reasons,” McKenzie says. “The state-required minimum liability limits may not be sufficient to cover the full extent of damages in an accident. If those damages exceed your coverage limits, in an accident deemed At Fault, the driver could be liable for the remaining costs. Drivers who choose to increase their liability limits would be increasing their financial protection as well.”
