State Laws8 min read

Minimum Insurance Coverage by State

State-by-state breakdown of required insurance limits.

Key Takeaways

  • This article covers the key aspects of minimum insurance coverage by state
  • Learn what steps to take and what to avoid
  • Understand how this affects your insurance claim
  • Get actionable advice you can use today

Minimum Insurance Coverage by State: Complete Guide

Every state sets its own minimum auto insurance requirements, and they vary dramatically. Understanding these requirements—and why they're usually not enough—can protect you financially after an accident.

State minimum coverage is almost always inadequate for serious accidents. Medical bills alone from a moderate injury accident often exceed $50,000, far more than most states' minimums.

Understanding Liability Coverage

What the Numbers Mean

Insurance limits are expressed as three numbers (e.g., 25/50/25):

  • First number: Maximum per person for bodily injury
  • Second number: Maximum per accident for all bodily injuries
  • Third number: Maximum for property damage

Example: 25/50/25 means:

  • Up to $25,000 for one person's injuries
  • Up to $50,000 total if multiple people injured
  • Up to $25,000 for property damage

What Liability Covers

Liability insurance pays:

  • Other people's medical expenses
  • Other people's lost wages
  • Other people's pain and suffering
  • Damage to other people's property
  • Your legal defense costs

It does NOT cover:

  • Your own injuries
  • Your own vehicle damage
  • Damage when you're not at fault

State-by-State Minimum Requirements

Lowest Minimum States

StateBI per PersonBI per AccidentProperty Damage
California$15,000$30,000$5,000
Arizona$25,000$50,000$15,000
Ohio$25,000$50,000$25,000
Indiana$25,000$50,000$25,000
Tennessee$25,000$50,000$15,000

Highest Minimum States

StateBI per PersonBI per AccidentProperty Damage
Maine$50,000$100,000$25,000
Alaska$50,000$100,000$25,000
Vermont$50,000$100,000$10,000

All States Alphabetically

StateMinimums
Alabama25/50/25
Alaska50/100/25
Arizona25/50/15
Arkansas25/50/25
California15/30/5
Colorado25/50/15
Connecticut25/50/25
Delaware25/50/10
Florida25/50/10 (BI now required)
Georgia25/50/25
Hawaii20/40/10
Idaho25/50/15
Illinois25/50/20
Indiana25/50/25
Iowa20/40/15
Kansas25/50/25
Kentucky25/50/25
Louisiana15/30/25
Maine50/100/25
Maryland30/60/15
Massachusetts20/40/5
Michigan50/100/10
Minnesota30/60/10
Mississippi25/50/25
Missouri25/50/25
Montana25/50/20
Nebraska25/50/25
Nevada25/50/20
New Hampshire25/50/25
New Jersey15/30/5
New Mexico25/50/10
New York25/50/10
North Carolina30/60/25
North Dakota25/50/25
Ohio25/50/25
Oklahoma25/50/25
Oregon25/50/20
Pennsylvania15/30/5
Rhode Island25/50/25
South Carolina25/50/25
South Dakota25/50/25
Tennessee25/50/15
Texas30/60/25
Utah25/65/15
Vermont50/100/10
Virginia30/60/20
Washington25/50/10
West Virginia25/50/25
Wisconsin25/50/10
Wyoming25/50/20
DC25/50/10

No-Fault State Additional Requirements

PIP (Personal Injury Protection)

No-fault states require PIP coverage:

StatePIP Minimum
FloridaNo longer required (as of 2023)
Hawaii$10,000
Kansas$4,500
Kentucky$10,000
Massachusetts$8,000
MichiganUnlimited (opt-down available)
Minnesota$40,000
New Jersey$15,000
New York$50,000
North Dakota$30,000
Pennsylvania$5,000
Utah$3,000

What PIP Covers

PIP typically pays for:

  • Medical expenses
  • Lost wages (usually 60-80%)
  • Essential services
  • Funeral expenses

Uninsured Motorist Requirements

States Requiring UM Coverage

Some states mandate uninsured motorist coverage:

StateUM RequiredMinimum
ConnecticutYes25/50
IllinoisYes25/50
KansasYes25/50
MaineYes50/100
MarylandYes30/60
MassachusettsYes20/40
MinnesotaYes25/50
MissouriYes25/50
NebraskaYes25/50
New JerseyYes15/30
New YorkYes25/50
North CarolinaYes30/60
OregonYes25/50
South CarolinaYes25/50
VermontYes50/100
West VirginiaYes25/50
Even in states where UM/UIM isn't required, you should carry it. About 12-15% of drivers nationwide are uninsured, and this coverage protects you when they cause accidents.

Why Minimums Aren't Enough

Medical Cost Reality

Average medical costs from auto accidents:

  • Emergency room visit: $3,000-$10,000
  • Ambulance transport: $1,000-$2,000
  • Hospitalization per day: $2,500-$5,000
  • Surgery: $10,000-$100,000+
  • Rehabilitation: $1,000-$5,000/month

A moderate injury can easily exceed $50,000 in medical bills.

Property Damage Reality

Average vehicle costs:

  • New car average price: $48,000+
  • Luxury vehicle: $75,000+
  • Trucks/SUVs: $50,000+
  • Total loss of newer vehicle easily exceeds $25,000

What Happens When You're Underinsured

If you cause an accident and damages exceed your coverage:

  • You're personally liable for the excess
  • Can be sued and wages garnished
  • Assets can be seized
  • May face bankruptcy
  • Judgment can follow you for years

Financial Experts Recommend

Coverage TypeMinimum Recommended
Bodily Injury100/300
Property Damage$100,000
Uninsured MotoristMatch liability limits
Underinsured MotoristMatch liability limits

High Net Worth Individuals

If you have significant assets:

  • Consider 250/500/250 or higher
  • Add umbrella policy ($1M-$5M)
  • Umbrella provides excess liability coverage
  • Protects personal assets from lawsuits

Cost Difference

The cost difference between minimums and adequate coverage is often surprisingly small:

  • Minimum coverage: ~$100/month
  • Adequate coverage: ~$125-$150/month
  • The extra $25-$50/month provides dramatically better protection

Special Coverage Considerations

Medical Payments Coverage

Medical payments (MedPay):

  • Pays your medical bills regardless of fault
  • No deductible
  • Works with health insurance
  • Low cost addition ($3-$10/month)
  • Recommended: $5,000-$10,000

Collision Coverage

For your own vehicle:

  • Pays for your car damage in accident
  • Has deductible ($250-$1,000 typical)
  • Required if you have car loan
  • Worth carrying on newer vehicles

Comprehensive Coverage

For non-collision damage:

  • Theft, vandalism, weather, animals
  • Usually has deductible
  • Required if you have car loan
  • Worth carrying on newer vehicles

What Happens After an Underinsured Accident

If the Other Driver Is Underinsured

Your options:

  1. Collect their full policy limits
  2. File UIM claim with your insurer (if you have coverage)
  3. Sue the driver personally
  4. May collect little if driver has no assets

If You're Underinsured

What happens:

  1. Your insurance pays up to limits
  2. You're personally liable for remainder
  3. Other party may sue you
  4. Your assets may be at risk
  5. Wages could be garnished

Frequently Asked Questions

What is the minimum car insurance required by law?

Minimum car insurance requirements vary by state and typically include liability coverage for bodily injury and property damage you cause to others. Most states require liability limits expressed as three numbers (like 25/50/25), meaning $25,000 per person for injuries, $50,000 per accident for all injuries, and $25,000 for property damage. Some no-fault states also require Personal Injury Protection (PIP).

Which state has the lowest minimum insurance requirements?

California has among the lowest minimum requirements at 15/30/5—just $15,000 per person for bodily injury, $30,000 per accident for all injuries, and only $5,000 for property damage. New Jersey and Pennsylvania also have similarly low minimums. These amounts are generally considered dangerously inadequate given modern medical and vehicle costs.

What does state minimum insurance cover?

State minimum liability insurance only covers OTHER people's expenses when you're at fault—their medical bills, lost wages, pain and suffering, and property damage. It does NOT cover your own injuries, your own vehicle damage, or situations where the other driver is at fault or uninsured. For your own protection, you need additional coverage types like collision, comprehensive, and uninsured motorist coverage.

Is state minimum insurance enough?

No—state minimum insurance is almost never adequate for serious accidents. The average new car costs over $48,000 (far exceeding most states' property damage minimums), and a moderate injury can easily result in $50,000+ in medical bills. If damages exceed your coverage limits, you're personally liable for the difference, which can lead to lawsuits, wage garnishment, and even bankruptcy.

How much car insurance do I really need?

Financial experts recommend at least 100/300/100 liability coverage ($100,000 per person, $300,000 per accident for injuries, $100,000 for property damage), plus matching uninsured/underinsured motorist coverage. The cost difference from minimum coverage is often only $25-$50 per month, but provides dramatically better protection for your assets and financial future.

Key Takeaways

  • State minimums range from 15/30/5 (California) to 50/100/25 (Maine)
  • Minimums are almost always inadequate for serious accidents
  • Recommended coverage: at least 100/300/100 for most drivers
  • UM/UIM coverage is essential even where not required
  • Cost difference between minimum and adequate coverage is often under $50/month
  • Umbrella policies provide extra protection for high net worth individuals
  • Being underinsured puts your personal assets at risk

For state-specific details, see our guides on California Car Accident Laws, Texas Car Accident Laws, and Florida Car Accident Laws.

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