What is the minimum auto insurance coverage that I have to sign up for?
What is the minimum auto insurance coverage that you need? The car insurance requirements by state are different, meaning that the least amount of auto insurance coverage you can get depends on where you live. For example, some states require you to have personal injury protection, while others don’t.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
UPDATED: Aug 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- The minimum auto insurance requirements vary by state, but most states require some coverage
- Bodily injury liability and property damage liability insurance are the most common types
- Some states also require personal injury protection or uninsured/underinsured motorist protection
If you’re interested in getting the most affordable auto insurance rates, then you’ll want to get the least amount of auto insurance coverage required for your state.
Minimum coverage for auto insurance requirements varies widely between states. Some states – like New Hampshire – don’t even require car insurance.
So what is the minimum auto insurance coverage that you have to sign up for? Today, we’re explaining everything you need to know about the minimum auto insurance coverage required in your state.
Minimum Auto Insurance Required by Law
First, let’s make something clear: if you want to legally drive on public roads in the United States, then you need to have car insurance. Car insurance is a specific requirement in 49 states in America. The only state that doesn’t technically require car insurance is New Hampshire.
However, even when it comes to New Hampshire auto insurance, you’re required to prove a certain level of cash reserves in order to legally drive on public roads, and most New Hampshire drivers opt for car insurance anyway.
Insurance laws in American states, however, vary widely. Some states require you to have several types of auto insurance and relatively high coverage limits.
Drivers in Texas, for example, are required to have $60,000 in bodily injury liability per accident.
Drivers in Florida, meanwhile, require just $10,000 in property damage liability per accident and $10,000 in personal injury protection.
In other words, the liability insurance requirements vary considerably across states.
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Minimum Auto Insurance Required in Your State
Getting the “minimum car insurance” can mean different things in different states. For example, some states require you to have personal injury protection, while other states don’t require any type of personal injury protection.
Typically, here are the components of the most basic auto insurance you’ll need to pay attention to in different states:
Bodily Injury Liability Insurance Requirements Per Persone
This type of affordable liability auto insurance coverage is the amount of coverage you have per person. Most states have a minimum bodily injury liability requirement of $15,000 to $50,000.
That means each person involved in the collision can claim up to $15,000 or $50,000 from the insurance company following an accident. Bodily injury liability covers damages you inflict to other passengers, drivers, or pedestrians involved in a collision. It covers medical expenses and similar costs.
Bodily Injury Liability Insurance Requirements Per Accident
Most states also outline a minimum amount of bodily injury liability coverage required per accident. Typically, this limit is twice the amount of required bodily injury liability coverage. Most states have a “per accident” liability coverage requirement of $30,000 to $50,000.
If you have a minimum car insurance plan, then this is the total amount of money your car insurance company will pay in bodily injury coverage after an accident.
Property Damage Liability Insurance Requirements Per Accident
Most states also outline a specific minimum required amount of property damage liability auto insurance coverage per accident. Property damage liability refers to the maximum amount your car insurance company will pay to compensate property damage – including the costs of repairing the other vehicle involved in the collision.
Uninsured or Underinsured Motorist Coverage Requirements
Some states require drivers to have a certain level of uninsured motorist coverage. If you get into a collision with an uninsured or underinsured motorist, then this coverage will supplement the other driver’s insurance policy after it’s maxed out.
In Connecticut, for example, you’re required to have $25,000 of uninsured/underinsured motorist coverage per person and $50,000 of uninsured/underinsured motorist coverage per accident.
There’s a reason insurance companies in some states require you to have uninsured or underinsured motorist coverage: according to USA Today, one in seven drivers in the United States is driving illegally without car insurance.
Read more: Affordable Uninsured or Underinsured Auto Insurance Coverage
Personal Injury Protection Insurance Requirements
Some states, like Florida and other no-fault states, require a certain amount of personal injury protection (PIP) coverage. Personal injury protection auto insurance covers your own medical expenses. In Florida, for example, you’re required to have $10,000 in personal injury protection coverage.
Other Minimum Car Insurance Requirements
Minimum car insurance requirements vary widely across states. Some states have unique requirements not seen in other states. Drivers in Maine, for example, are required to have a minimum of $1,000 in medical payments coverage.
Drivers in New York, meanwhile, are required to have $50,000 in liability coverage for death per person and $100,000 in liability coverage for death per accident.
Exceeding the Minimum of Auto Insurance Needed
Let’s say you cause an accident. You get into a collision with a family in an SUV. As a California driver with a minimum liability plan, your car insurance covers $15,000 in bodily injury liability per person, up to a total of $30,000 in bodily injury liability per accident, along with just $5,000 in property damage liability per accident.
The family of four visits the hospital. Each family member receives medical services worth $20,000. Additionally, the SUV is severely damaged and requires $15,000 worth of repairs.
What happens when you get into a collision that exceeds your liability limits? Your insurance company will cover the damages up to the limits of your policy.
In this situation, your insurance would partially cover the medical expenses of two of the family members, providing $15,000 in compensation to two members, up to the $30,000 limit of your policy. Then, your insurance company would pay $5,000 to repair damage to the vehicle.
Once your policy is used up, then you’ll need to pay out of pocket instead of going through insurance for the remaining costs (assuming you’re at fault). If you don’t have the assets to pay for the remaining costs, then you may face a lawsuit. In other cases, the other driver’s uninsured or underinsured motorist coverage will kick in.
Keep in mind that minimum auto insurance coverage only covers damages you cause to other people and property during a collision. Your own medical expenses and vehicle damages may not be covered. You may need to pay out of pocket for these expenses as well.
A Final Word About the Minimum Auto Insurance Coverage That You Have to Sign Up For
If you want the cheapest possible car insurance, and you understand the risks of cheap car insurance, then we encourage you to shop for minimum liability car insurance quotes online today.
Remember to visit the Insurance Information Institute’s official website, III.org, to discover the minimum auto insurance coverage requirements in your state. Minimum liability requirements vary widely from state to state. Start shopping for car insurance in your area to discover which minimum auto insurance plan is right for you.
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Frequently Asked Questions
What is the minimum auto insurance coverage required in my state?
Each state has its own minimum requirements for auto insurance coverage. It’s important to know the specific coverage limits mandated by your state to ensure compliance.
Does the minimum auto insurance coverage vary between states?
Yes, the minimum auto insurance coverage varies between states. Some states require higher coverage limits than others. It’s crucial to understand the requirements in your state to avoid any penalties or legal issues.
What happens if I exceed the minimum auto insurance coverage?
If you exceed the minimum auto insurance coverage and cause an accident that results in damages exceeding your policy limits, you may be personally responsible for the remaining costs. It’s recommended to consider additional coverage options to protect yourself adequately.
Are there additional types of coverage beyond the minimum requirements?
Yes, there are additional types of coverage available beyond the minimum requirements. These include comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, and more. Discussing your needs with an insurance agent can help you determine the right coverage for your situation.
Can I save money by getting the minimum auto insurance coverage?
While opting for the minimum auto insurance coverage may save you money on premiums, it’s essential to consider the potential financial risks. In the event of an accident, the minimum coverage may not be sufficient to cover all damages, leaving you liable for additional expenses. It’s advisable to evaluate your personal circumstances and assess the level of coverage you need to ensure adequate protection.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.