State-by-State Car Minimum Insurance Requirements
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What is State Minimum Required Car Insurance?
Minimum state-required car insurance – or liability insurance – is the amount of car insurance drivers are required by their state to have to protect themselves and others in case of a car crash. This mandatory type of insurance coverage typically consists of a combination of injury and property damage liability protections, designed to provide some financial help after a car accident.
Each state requires some form of financial responsibility from the people who drive on its roads. The reason for this is simple – car accidents cost money and plenty of it – in property damages and hospital bills. In many cases, states must step in and pick up some of the cost when people who do not have adequate health insurance get hurt. With minimum requirements for car insurance, states are trying to pass at least some of the costs for car accidents onto the citizens – and their insurance companies.
How Does State-Required Minimum Insurance Work?
Most states require drivers to carry a set amount of car insurance that kicks in after a car crash to help pay for the financial consequences of injuries and property damage. For example, Texas requires:
- $30,000 of coverage for injuries per person
- $25,000 of coverage for property damage.
- $60,000 of coverage for injuries per accident
This is called 30/60/25 coverage. This means when a car crash happens in Texas, the at-fault driver’s insurance company will pay up to those amounts to the other people involved to help pay for their injuries and damages. If you know much about the costs of ambulances and hospitals, as well as the costs for fixing even minor damage to today’s vehicles, then you can probably tell that those amounts may not go very far.
And, on top of that, in an at-fault state like Texas, if you cause an accident and you have only the state-required minimum car insurance, there won’t be any money for you from your car insurance company – only for the other people involved. Not only will you be responsible for any costs that exceed those above-listed limits out of pocket, you’ll also be responsible for your own injuries and damages.
This is why some people choose to carry more than the state-required minimum car insurance coverage. The experts at Freeway Insurance can help you decide how much coverage you need.
What is an At-Fault State?
Most states are at-fault states, which means that a driver who causes an accident will be responsible for the injury and damage costs of the other people in the accident. In a no-fault state, in most cases, it doesn’t matter who is at fault – your insurance company pays for your costs and the other driver’s insurance company pays for their costs. However, most no-fault states will require additional medical insurance coverage in the form of Personal Injury Protection or PIP.
How Much Does the State-Required Minimum Insurance Cost?
The exact amount you’ll pay for your state’s required minimum car insurance is between you and your auto insurance company (this may be a good time to do some ). Insurance rates are set by the state so everybody who needs to buy insurance is playing on a level field, but insurance companies use complicated algorithms to decide how they are going to take that base rate and transform it into a quote for you to pay.
Some of the factors that insurance companies take into effect include:
- Age
- Gender
- Occupation
- Homeownership
- Marital status
- Zip code of residence
- Credit score
And maybe most importantly, your driving record.
What Can I Do to Reduce How Much I Pay For State-Required Minimum Insurance?
There are steps you can take to lower how much your car insurance costs. First, maintain a good driving record with little to no claims. Second, shop around for an insurance company and compare costs. Third, find out what discounts you qualify for by asking your agent. Fourth, choose to drive a car that is reliable, has safety features and doesn’t cost an arm and a leg to fix if you do get into a wreck.
At Freeway Insurance, we do the work of shopping around for you. We’ll help you decide what coverage you want and need, and then research different companies until we have a good selection for you to choose from to give you the peace of mind you need when driving.
What are the State-by-State Minimum Requirements?
Here’s a look at each state, whether they are an at-fault or no-fault state and their minimum required coverage amounts. Some states require additional insurance to cover you if you are in an accident with a driver who is uninsured or underinsured (UM). Some states also require Personal Injury Protection (PIP), an additional medical coverage.
As with people, states have higher and lower average car insurance rates. These figures are based on things like rate of litigation and number and dollar amount of claims, among many others.
| State | At Fault/No Fault | State Required Coverage | State-Required Minimum or Liability Insurance** |
|---|---|---|---|
| Alabama | At Fault | 25/50/25 | $469 |
| Alaska | At Fault | 50/100/25 | $373 |
| Arizona | At Fault | 25/50/15 | $555 |
| Arkansas | At Fault | 25/50/25 | $470 |
| California | At Fault | 15/30/5 | $733 |
| Colorado | At Fault | 25/50/15 | $518 |
| Connecticut | At Fault | 25/50/25 25/50 UM |
$794 |
| Delaware | At Fault | 25/50/10 15/30 PIP |
$787 |
| Florida | No Fault | $10,000 PIP $10,000 PDL |
$1,101 |
| Georgia | At Fault | 25/50/25 | $756 |
| Hawaii | No Fault | 20/40/10 $10,000 PIP |
$345 |
| Idaho | At Fault | 25/50/15 | $307 |
| Illinois | At Fault | 25/50/20 | $442 |
| Indiana | At Fault | 25/50/25 | $367 |
| Iowa | At Fault | 20/40/15 | $252 |
| Kansas | No Fault | 25/50/25 $4,500 PIP 25/50 UM |
$410 |
| Kentucky | No Fault | 25/50/25 | $748 |
| Louisiana | At Fault | 15/30/25 | $975 |
| Maine | At Fault | 50/100/25 $2,000 PIP 50/100 UM |
$294 |
| Maryland | At Fault | 30/60/15 | $767 |
| Massachusetts | No Fault | 20/40/5 $8,000 PIP 20/40 UM |
$510 |
| Michigan* | No Fault | 50/100/10 PIP options |
$948 $565 |
| Minnesota | No Fault | 170/510/85 $40,000 PIP 25/50 UM |
$537 |
| Mississippi | At Fault | 25/50/25 | $492 |
| Missouri | At Fault | 25/50/25 25/50 UM |
$468 |
| Montana | At Fault | 25/50/20 | $342 |
| Nebraska | At Fault | 25/50/25 | $335 |
| Nevada | At Fault | 25/50/20 | $860 |
| New Hampshire* | At Fault | 25/50/25 $1,000 PIP 25/50 UM |
$389 |
| New Jersey* | No Fault | Basic: $15,000 PIP and $5,000 PDL or Standard: 15/30/5 $15,000 PIP |
$847 |
| New Mexico | At Fault | 25/50/10 | $385 |
| New York | No Fault | 25/50/10 | $1,062 |
| North Carolina | At Fault | 30/60/25 | $413 |
| North Dakota | No Fault | 25/50/25 25/50 UM $30,000 PIP |
$285 |
| Ohio | At Fault | 25/50/25 | $328 |
| Oklahoma | At Fault | 25/50/25 | $423 |
| Oregon | At Fault | 25/50/20 $15,000 PIP 25/50 UM |
$610 |
| Pennsylvania | No Fault | 15/30/5 $5,000 PIP |
$427 |
| Rhode Island | At Fault | 25/50/25 | $749 |
| South Carolina | At Fault | 25/50/25 25/50/25 UM |
$558 |
| South Dakota | At Fault | 25/50/25 25/50 UM |
$275 |
| Tennessee | At Fault | 25/50/25 | $371 |
| Texas | At Fault | 30/60/25 | $496 |
| Utah | No Fault | 25/65/15 $3,000 PIP |
$332 |
| Vermont | At Fault | 25/50/10 50/100/10 UM |
$292 |
| Virginia | At Fault | 30/60/20 | $441 |
| Washington | At Fault | 25/50/10 | $463 |
| West Virginia | At Fault | 25/50/25 25/50/25 UM |
$458 |
| Wisconsin | At Fault | 25/50/10 | $332 |
| Wyoming | At Fault | 25/50/20 | $271 |
*Michigan: Drivers must choose between 4 PIP options. If they fail to choose, the most expensive (unlimited PIP) will be the default choice.
* New Hampshire: New Hampshire does not require car insurance. However, if you are responsible for someone else’s injuries and damages, you must show proof of financial responsibility. Choosing to buy the minimum liability available can protect your assets if you cause an accident. If you buy insurance, these are the minimum amounts you will be required to purchase.
* New Jersey: Drivers may choose to purchase the Basic Plan or the Standard Plan
** The state-required minimum based on a 30-year-old with a clean driving record and a newer vehicle with safety features. Your costs will differ based on your individual circumstances.
Finding Affordable Online Coverage in Your State
Car insurance is more than just a legal requirement; it’s also an inexpensive way to protect yourself from the tremendous risks of daily driving. Freeway Insurance can help you navigate the car insurance maze with an quote or by calling us at (800) 777-5620. You can also visit us at an office near you.