Minimum Car Insurance Requirements by State [2023]
All drivers must carry the required auto insurance to legally drive, but minimum car insurance requirements by state vary. However, states usually always require drivers to have, at the very least, a minimum liability insurance policy to drive, which costs an average of $44 per month in the U.S.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Sep 8, 2023
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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above 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: Sep 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Most states require a minimum amount of car insurance before you can drive or register your car
- The most common type of insurance required by states is liability insurance, though some also require uninsured motorist or personal injury protection
- Minimum insurance is your cheapest option for coverage, but most drivers benefit from buying additional insurance
Whether you’re buying car insurance for your new car or looking to reduce how much you pay each month, understanding minimum car insurance requirements by state is crucial to finding the right policy. However, states require different amounts of coverage, so knowing how much you need can be a bit confusing.
Most states require a minimum amount of liability insurance, while many others require uninsured motorist or personal injury protection coverage. While minimum insurance is your cheapest option for coverage, it’s not always your best bet — many drivers benefit from buying more coverage.
Read on to learn about your state’s minimum insurance requirements and how much it might cost you. Then, compare rates with as many companies as possible to find the best minimum coverage prices.
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Minimum Car Insurance Requirements in Each State
Most states require a minimum amount of car insurance before you can register your car or legally drive. Minimum car insurance requirements vary by state, but most drivers are required to buy at least liability car insurance. Many states also include uninsured/underinsured motorist or personal injury protection insurance in their coverage requirements.
Check below for car insurance laws by state and how much you’ll need before you hit the road.
| States | Car Insurance Requirements | Minimum Liability Limits |
|---|---|---|
| Alabama | BI & PD liability | 25/50/25 |
| Alaska | BI & PD liability | 50/100/25 |
| Arizona | BI & PD liability | 25/50/15 (2) |
| Arkansas | BI & PD liability, PIP | 25/50/25 |
| California | BI & PD liability | 15/30/5 (3) |
| Colorado | BI & PD liability | 25/50/15 |
| Connecticut | BI & PD liability, UM, UIM | 25/50/25 |
| Delaware | BI & PD liability, PIP | 25/50/10 |
| D.C. | BI & PD liability, UM | 25/50/10 |
| Florida | PD liability, PIP | 10/20/10 (4) |
| Georgia | BI & PD liability | 25/50/25 |
| Hawaii | BI & PD liability, PIP | 20/40/10 |
| Idaho | BI & PD liability | 25/50/15 |
| Illinois | BI & PD liability, UM, UIM | 25/50/20 |
| Indiana | BI & PD liability | 25/50/25 |
| Iowa | BI & PD liability | 20/40/15 |
| Kansas | BI & PD liability, PIP | 25/50/25 |
| Kentucky | BI & PD liability, PIP, UM, UIM | 25/50/25 (4) |
| Louisiana | BI & PD liability | 15/30/25 |
| Maine | BI & PD liability, UM, UIM, Medpay | 50/100/25 (5) |
| Maryland | BI & PD Liability, PIP, UM, UIM | 30/60/15 |
| Massachusetts | BI & PD liability, PIP | 20/40/5 |
| Michigan | BI & PD liability, PIP | 20/40/10 |
| Minnesota | BI & PD liability, PIP, UM, UIM | 30/60/10 |
| Mississippi | BI & PD liability | 25/50/25 |
| Missouri | BI & PD liability, UM | 25/50/25 |
| Montana | BI & PD liability | 25/50/20 |
| Nebraska | BI & PD liability, UM, UIM | 25/50/25 |
| Nevada | BI & PD liability | 25/50/20 |
| New Hampshire | FR only | 25/50/25 |
| New Jersey | BI & PD liability, PIP, UM, UIM | 15/30/5 (6) |
| New Mexico | BI & PD liability | 25/50/10 |
| New York | BI & PD liability, PIP, UM, UIM | 25/50/10 (7) |
| North Carolina | BI & PD liability, UM, UIM | 30/60/25 |
| North Dakota | BI & PD liability, PIP, UM, UIM | 25/50/25 |
| Ohio | BI & PD liability | 25/50/25 |
| Oklahoma | BI & PD liability | 25/50/25 |
| Oregon | BI & PD liability, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD liability, PIP | 15/30/5 |
| Rhode Island | BI & PD liability | 25/50/25 |
| South Carolina | BI & PD liability, UM | 25/50/25 |
| South Dakota | BI & PD liability, UM, UIM | 25/50/25 |
| Tennessee | BI & PD liability | 25/50/15 (4) |
| Texas | BI & PD liability, PIP | 30/60/25 |
| Utah | BI & PD liability, PIP | 25/65/15 (4) |
| Vermont | BI & PD liability, UM, UIM | 25/50/10 |
| Virginia | BI & PD liability (8), UM, UIM | 25/50/20 |
| Washington | BI & PD liability | 25/50/10 |
| West Virginia | BI & PD liability, UM, UIM | 25/50/25 |
| Wisconsin | BI & PD liability, UM, Medpay | 25/50/10 |
| Wyoming | BI & PD liability | 25/50/20 |
As you can see, there is a great deal of variation in insurance requirements between states. States like Michigan and Wisconsin have large insurance requirements, while some states like California are pretty lax (learn more: compare California car insurance rates).
When it comes to buying car insurance, the minimum amount your state requires is your cheapest option for coverage. It doesn’t offer the best protection for your car, but state minimum car insurance offers the lowest prices.
Cost of Minimum Car Insurance by State
As you saw above, there’s significant variation between states when it comes to insurance laws. While minimum insurance is your cheapest option for a policy, the amount you’ll pay depends on where you live. States with higher insurance requirements typically have higher average insurance rates, though many other factors affect prices.
Learn about factors that affect car insurance rates.
To see how much the average price for minimum insurance in your state is, check below.
| States | Average Monthly Liability Rates |
|---|---|
| Alabama | $37 |
| Alaska | $47 |
| Arizona | $48 |
| Arkansas | $36 |
| California | $45 |
| Colorado | $49 |
| Connecticut | $59 |
| Delaware | $69 |
| District of Columbia | $58 |
| Florida | $76 |
| Georgia | $55 |
| Hawaii | $39 |
| Idaho | $32 |
| Illinois | $40 |
| Indiana | $34 |
| Iowa | $27 |
| Kansas | $32 |
| Kentucky | $47 |
| Louisiana | $73 |
| Maine | $30 |
| Maryland | $55 |
| Massachusetts | $52 |
| Michigan | $72 |
| Minnesota | $39 |
| Mississippi | $41 |
| Missouri | $38 |
| Montana | $34 |
| Nebraska | $33 |
| Nevada | $64 |
| New Hampshire | $35 |
| New Jersey | $76 |
| New Mexico | $44 |
| New York | $71 |
| North Carolina | $31 |
| North Dakota | $25 |
| Ohio | $35 |
| Oklahoma | $40 |
| Oregon | $53 |
| Pennsylvania | $43 |
| Rhode Island | $68 |
| South Carolina | $50 |
| South Dakota | $26 |
| Tennessee | $37 |
| Texas | $49 |
| Utah | $45 |
| Vermont | $30 |
| Virginia | $38 |
| Washington | $53 |
| West Virginia | $43 |
| Wisconsin | $33 |
| Wyoming | $29 |
| Countrywide | $48 |
Although minimum insurance is affordable, it comes with a few financial risks. First, minimum insurance doesn’t cover your car. If you cause an accident, you’ll have to pay for your repairs by yourself. The second risk is that most states don’t require very much insurance, and exceeding those limits is not difficult. If your insurance runs out before everything is paid for, you’ll be left with the rest of the bill.
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Types of Car Insurance Required by States
You saw that states require different types of insurance. The most commonly required type of insurance is liability insurance, but there are a few others some states require. The types of insurance your state might require include the following:
- Bodily injury liability: The first half of liability auto insurance coverage pays for injuries you cause to other people, their passengers, and any pedestrians or bystanders.
- Property damage liability: The other half of liability insurance covers damage you cause to other people’s property, including vehicles and buildings.
- Uninsured/underinsured motorist: Although most states require car insurance, not everyone follows the law. Uninsured/underinsured motorist insurance protects you from drivers without adequate coverage and is required in 20 states.
- Personal injury protection: Personal injury protection covers health care expenses for you and your passengers after an accident, no matter who was at fault. Personal injury protection insurance is required in 16 states (read more: compare personal injury protection (PIP) car insurance).
- Medical payments: Medical payments insurance — or MedPay — is similar to personal injury protection insurance, but it doesn’t cover lost wages. Maine is the only state that requires MedPay insurance.
Although these are the only coverages required by state law, many other types of insurance are available. For example, many drivers choose to buy comprehensive and collision insurance to better protect their cars.
States That Don’t Require Car Insurance
Most states require car insurance, but there are a few that don’t. Currently, only two states don’t require car insurance before you can start driving:
- New Hampshire: New Hampshire drivers are only required to prove they can pay for the damage they cause in an accident. Drivers with a major violation, such as a DUI or at-fault accident, might be required to buy insurance (Learn more: compare New Hampshire car insurance rates).
- Virginia: Virginia allows drivers to pay an annual $500 uninsured motorist fee instead of buying coverage. However, that leaves you completely responsible if you cause an accident. Since minimum insurance costs about $500 a year in Virginia, most drivers are encouraged to buy coverage. Learn about how to compare Virginia car insurance rates.
Many other states allow drivers to make a large cash deposit with the DMV rather than buy car insurance. Every state is different, but the deposit amounts are usually between $25,000 and $115,000. Due to the large deposit amount and the inconvenience of getting into an accident, most experts recommend getting insurance instead.
Find Affordable Car Insurance in Your State Today
No matter how much state car insurance you need, minimum coverage offers the lowest prices. While understanding how much insurance you need might be a bit confusing, you don’t have to figure it out by yourself — an insurance representative can help.
Although minimum insurance is your cheapest option for coverage, you should still compare as many rates as possible. You’ll see significant variations in rates between different companies, and you’ll likely overpay if you don’t compare rates.
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Case Studies: Understanding Minimum Car Insurance Requirements by State
Case Study 1: The Cost of Minimum Insurance in Michigan
In this case study, we follow John, a resident of Michigan, and examine the high insurance requirements in the state. John opted for minimum car insurance coverage to save on costs. However, when he caused an accident, he found himself responsible for covering the damages to his own vehicle, resulting in unexpected expenses.
Case Study 2: California’s Lax Minimum Insurance Requirements
Sarah, a driver in California, serves as the focus of this case study. With relatively relaxed minimum insurance requirements in the state, Sarah decided to stick with the minimum coverage. Unfortunately, she got into a collision with an uninsured driver, and her minimal coverage couldn’t fully cover the costs of her medical bills. We explore Sarah’s experience and discuss the limitations of minimum insurance in such situations.
Case Study 3: Alternatives to Car Insurance in New Hampshire and Virginia
In this case study, we introduce Mark, a resident of New Hampshire. Mark took advantage of the state’s alternative method by making a large cash deposit with the DMV instead of purchasing car insurance. However, Mark later faced challenges when he got involved in an accident that exceeded the amount of his deposit.
The Final Word on State Car Insurance Requirements
Now that you know what auto insurance coverages your state requires, the next step is to start shopping for the best auto insurance coverages and rates in your state.
To get started, use our free quote comparison tool. It will help you find the best companies in your state for auto insurance.
Frequently Asked Questions
What are the minimum insurance requirements in each state?
Minimum requirements vary. Most states require liability insurance, and some also require uninsured/underinsured motorist or personal injury protection coverage.
How much does minimum insurance cost?
Costs vary by state. Higher requirements usually mean higher rates.
What types of insurance are required by states?
Liability insurance is most common, but some states require additional coverage like uninsured motorist or personal injury protection.
Which states don’t require car insurance?
Only New Hampshire and Virginia don’t require car insurance. Other states may offer alternatives.
Why do states require car insurance?
States require insurance to protect drivers financially and ensure coverage for accidents. Penalties for driving without insurance can be severe.
What car insurance is required in all 50 states?
All states require liability insurance, with the exception of New Hampshire (where you can opt out if you meet the requirements for financial responsibility).
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
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.