Tag: insurance minimum requirements

  • State-Minimum Insurance Requirements: 50-State Comparison

    State-Minimum Insurance Requirements: 50-State Comparison

    Hook: Shopping for auto insurance but confused by varying state rules? Understanding minimum car insurance by state helps you stay legal and avoid penalties. This 50-state overview breaks down each state’s state liability limits, so you can compare requirements at a glance and find the right coverage for your budget.

    • Key liability minimums for bodily injury and property damage
    • No-fault vs. tort states: what the differences mean
    • Tips for selecting coverage above the legal minimum

    Liability Minimums: The Basics

    All states (except New Hampshire and Virginia) require at least liability coverage, which pays for others’ medical bills and property damage if you’re at fault. Limits are usually expressed as three numbers (e.g., 25/50/25):

    • Bodily Injury per Person: Maximum payout per injured individual.
    • Bodily Injury per Accident: Maximum total payout for all injuries in one accident.
    • Property Damage: Maximum payout for damage to another vehicle or property.

    50-State Liability Comparison

    State BI per Person BI per Accident PD Notes
    Alabama $25,000 $50,000 $25,000 Tort state
    Alaska $50,000 $100,000 $25,000 No-fault with PIP
    Arizona $25,000 $50,000 $15,000 Tort state
    Arkansas $25,000 $50,000 $25,000 Tort
    California $15,000 $30,000 $5,000 No-fault with PIP
    Colorado $25,000 $50,000 $15,000 Tort
    Connecticut $25,000 $50,000 $25,000 No-fault
    Delaware $25,000 $50,000 $10,000 No-fault
    Florida $10,000 $20,000 $10,000 No-fault with PIP
    Georgia $25,000 $50,000 $25,000 Tort
    Hawaii $20,000 $40,000 $10,000 No-fault
    Idaho $25,000 $50,000 $15,000 Tort
    Illinois $25,000 $50,000 $20,000 No-fault
    Indiana $25,000 $50,000 $25,000 Tort
    Iowa $20,000 $40,000 $15,000 No-fault
    Kansas $25,000 $50,000 $25,000 Tort
    Kentucky $25,000 $50,000 $10,000 Tort
    Louisiana $15,000 $30,000 $25,000 Tort
    Maine $50,000 $100,000 $25,000 No-fault
    Maryland $30,000 $60,000 $15,000 No-fault
    Massachusetts $20,000 $40,000 $5,000 No-fault
    Michigan $10,000 $20,000 $10,000 No-fault
    Minnesota $30,000 $60,000 $10,000 No-fault
    Mississippi $25,000 $50,000 $25,000 Tort
    Missouri $25,000 $50,000 $25,000 Tort
    Montana $25,000 $50,000 $20,000 Tort
    Nebraska $25,000 $50,000 $25,000 No-fault
    Nevada $25,000 $50,000 $20,000 Tort
    New Hampshire None (Optional) None None Optional liability
    New Jersey $15,000 $30,000 $5,000 No-fault
    New Mexico $25,000 $50,000 $10,000 Tort
    New York $25,000 $50,000 $10,000 No-fault
    North Carolina $30,000 $60,000 $25,000 Tort
    North Dakota $25,000 $50,000 $25,000 No-fault
    Ohio $25,000 $50,000 $25,000 Tort
    Oklahoma $25,000 $50,000 $25,000 Tort
    Oregon $25,000 $50,000 $20,000 No-fault
    Pennsylvania $15,000 $30,000 $5,000 No-fault
    Rhode Island $25,000 $50,000 $25,000 No-fault
    South Carolina $25,000 $50,000 $25,000 Tort
    South Dakota $25,000 $50,000 $25,000 No-fault
    Tennessee $25,000 $50,000 $15,000 No-fault
    Texas $30,000 $60,000 $25,000 Tort
    Utah $25,000 $65,000 $15,000 No-fault
    Vermont $25,000 $50,000 $10,000 No-fault
    Virginia None (Optional) None None Optional liability
    Washington $25,000 $50,000 $10,000 No-fault
    West Virginia $25,000 $50,000 $25,000 Tort
    Wisconsin $25,000 $50,000 $10,000 No-fault
    Wyoming $25,000 $50,000 $20,000 Tort

    No-Fault vs. Tort States

    No-fault states (e.g., Florida, Michigan) require Personal Injury Protection (PIP), which pays your medical bills regardless of who caused the crash. In tort states (e.g., Texas, California), fault is determined first, and the at-fault driver’s liability insurance covers injuries and damages.

    Why You Might Choose Higher Limits

    • Protect Your Assets: Low state minimums can leave you personally liable if damages exceed your limits.
    • Avoid Lawsuits: Higher BI limits reduce the likelihood of being sued for uncovered medical expenses.
    • Peace of Mind: A 100/300/100 policy is often affordable and provides robust protection.

    Tips to Balance Cost and Coverage

    • Bundle Policies: Combining auto with home or renters insurance often earns significant discounts.
    • Shop Around: Compare quotes from multiple insurers, especially small carriers that may undercut big names.
    • Increase Deductibles: Raising comprehensive and collision deductibles can lower premiums, then self‑insure minor claims out of pocket.
    • Maintain a Clean Record: Safe‑driving discounts and accident forgiveness programs reward drivers with good histories.

    FAQs

    Q1: Can I legally drive in another state with only my home state’s minimum coverage?
    A1: Yes—your policy’s liability limits travel with you, but if you’re in a no-fault state, you may not have required PIP coverage.
    Q2: What if I live near a state border?
    A2: Your insurer sets your policy based on your primary residence, not where you drive most often.
    Q3: Are state minimums enough for new drivers?
    A3: New drivers face higher risk; opting for higher limits and added protections like UM/UIM is strongly recommended.

    Conclusion & Next Steps

    Knowing the minimum car insurance by state and state liability limits is the first step to compliance—but not necessarily the wisest. Review your driving habits, asset exposure, and budget to choose coverage that truly protects you. Request multiple quotes, consider higher limits, and leverage discounts to build a policy that keeps you secure on any road—coast to coast.