What is the minimum car insurance required by each state?

State minimum car insurance is about $48 per month. However, monthly state minimum auto insurance varies for each state. Also, insurance requirements for each state are different. Coverages that aren’t included in liability insurance will add more to your insurance rates. But you can secure cheaper rates with the right company.

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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...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Jan 26, 2022

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Here's what you need to know...

  • The most common coverage limit is 25/50/25
  • Car insurance companies recommend 50/100/50 and higher
  • Liability-only car insurance rates are $48/month on average
  • New Hampshire and Virginia don’t have mandatory car insurance requirements
  • Commercial car insurance requirements demand higher coverage limits

State minimum auto insurance is different for each state. The state minimum car insurance meaning describes the insurance requirements to drive in a specific state. However, every state demands something unique for drivers.

But what is the minimum amount of liability insurance required in California and Texas? Is it the same? Don’t worry – we’ll answer your questions.

This guide has everything you need to know about state minimum car insurance, what coverage level is recommended, and how the best auto insurance companies compare in the nation.

Continue reading to learn more about the state minimum car insurance. Enter your ZIP code in the free online quote tool above to compare multiple insurance companies near you.

What is the minimum car insurance required by each state?

Auto insurance requirements vary for each state. All states have bodily injury (BI) and property damage (PD) liability. However, only a few states have uninsured/underinsured motorist (UM/UIM) coverage as a requirement.

Let’s review a complete list of states and their minimum car insurance requirements and coverage limits.

Car Insurance Coverage Requirements by State
StatesCar Insurance
Requirements
Minimum Liability
Limits
AlabamaBI & PD liability25/50/25
AlaskaBI & PD liability50/100/25
ArizonaBI & PD liability25/50/15 (2)
ArkansasBI & PD liability, PIP25/50/25
CaliforniaBI & PD liability15/30/5 (3)
ColoradoBI &PD liability25/50/15
ConnecticutBI & PD liability, UM, UIM25/50/25
DelawareBI PD liability, PIP25/50/10
D.C.BI & PD liability, UM25/50/10
FloridaPD liability, PIP10/20/10 (4)
GeorgiaBI & PD liability25/50/25
HawaiiBI & PD liability, PIP20/40/10
IdahoBI & PD liability25/50/15
IllinoisBI & PD liability, UM, UIM25/50/20
IndianaBI & PD liability25/50/25
IowaBI & PD liability20/40/15
KansasBI & PD liability, PIP25/50/25
KentuckyBI & PD liability, PIP, UM, UIM25/50/25 (4)
LouisianaBI & PD liability15/30/25
MaineBI & PD liability, UM, UIM, Medpay50/100/25 (5)
MarylandBI & PD Liability, PIP, UM, UIM30/60/15
MassachusettsBI & PD liability, PIP20/40/5
MichiganBI & PD liability, PIP20/40/10
MinnesotaBI & PD liability, PIP, UM, UIM30/60/10
MississippiBI & PD liability25/50/25
MissouriBI & PD liability, UM25/50/25
MontanaBI & PD liability25/50/20
NebraskaBI & PD liability, UM, UIM25/50/25
NevadaBI & PD liability25/50/20
New HampshireFR only25/50/25
New JerseyBI & PD liability, PIP, UM, UIM15/30/5 (6)
New MexicoBI & PD liability25/50/10
New YorkBI & PD liability, PIP, UM, UIM25/50/10 (7)
North CarolinaBI & PD liability, UM, UIM30/60/25
North DakotaBI & PD liability, PIP, UM, UIM25/50/25
OhioBI & PD liability25/50/25
OklahomaBI & PD liability25/50/25
OregonBI & PD liability, PIP, UM, UIM25/50/20
PennsylvaniaBI & PD liability, PIP15/30/5
Rhode IslandBI & PD liability25/50/25
South CarolinaBI & PD liability, UM25/50/25
South DakotaBI & PD liability, UM, UIM25/50/25
TennesseeBI & PD liability25/50/15 (4)
TexasBI & PD liability, PIP30/60/25
UtahBI & PD liability, PIP25/65/15 (4)
VermontBI & PD liability, UM, UIM25/50/10
VirginiaBI & PD liability (8), UM, UIM25/50/20
WashingtonBI & PD liability25/50/10
West VirginiaBI & PD liability, UM, UIM25/50/25
WisconsinBI & PD liability, UM, Medpay25/50/10
WyomingBI & PD liability25/50/20
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Coverage limits are abbreviated. For example, 25/50/25 stands for $25,000 for bodily injury of one person per accident, $50,000 for bodily injury of multiple people per accident, and $25,000 for property damage per accident.

When you buy state minimum car insurance, these are coverage limits you’ll receive. But the amount depends on your state.

Which states don’t have mandatory car insurance requirements?

New Hampshire and Virginia are two states that don’t require you to carry the minimum coverage limits. However, anyone who wants auto insurance in those states should get the recommended coverage level.

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What types of car insurance are required?

Liability auto insurance is the minimum coverage requirement that you need to drive legally in the United States. But what coverages are part of liability insurance?

Here’s a list of coverages that make up liability insurance.

  • Bodily injury (BI) liability
  • Property damage (PD) liability
  • Personal injury protection (PIP)
  • Medical payments (MedPay)
  • Uninsured/underinsured motorist (UM/UIM) coverage

A couple of states have UM/UIM and PIP as requirements. Not many states have MedPay as a requirement, though. Although some of these coverages aren’t required, we recommend adding them to your policy.

Should I buy liability-only or full coverage car insurance?

It depends on your situation. Liability-only auto insurance is perfect for older vehicles that have values lower than the average cost of total loss repairs.

But if you want total coverage on your car, full coverage car insurance is much better than affordable state minimum car insurance.

Can optional car insurance options help me stay covered?

Yes, it can. Optional coverage options, such as rental car reimbursement, collision insurance, and comprehensive coverage, are good coverage options that help cover areas that liability insurance won’t cover.

How much are state minimum car insurance rates?

State minimum car insurance quotes vary for each person and state. On average, state minimum car insurance (liability-only insurance) is $48 a month. However, the National Association of Insurance Commissioners (NAIC) has multiple projections for each state.

Let’s examine how each state has different rates in the table below.

Average Monthly Liability Car Insurance Rates by State
StatesAverage 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
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Liability insurance is about 53% cheaper than full coverage. States like Michigan, Florida, and Louisiana generate the most expensive rates regardless of the coverage you choose.

But you can secure cheaper rates when you’re eligible for various car insurance discounts.

Are state minimum car insurance rates more expensive at the top companies?

The average state minimum auto insurance rates increase when you get an insurance quote. Car insurance companies use unique methods to calculate your rates.

But how do these rates look for car insurance customers? Let’s look at the cost of auto insurance at the best companies in the nation.

Monthly Liability-Only Car Insurance Rates by Company
CompaniesLiability-Only Car Insurance Rates
Allstate$162
American Family$114
Farmers$147
GEICO$91
Liberty Mutual$203
Nationwide$117
Progressive$144
State Farm$120
Travelers$147
USAA$82
**National Average**$133
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USAA is available to military veterans and people in their immediate families. Therefore, we recommend that you choose GEICO, American Family, and Nationwide if you want cheap car insurance.

If you’re eager to shop with smaller, regional auto insurance companies, be sure to secure as many discounts as possible to keep your rates low.

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Does commercial car insurance have the same requirements as state minimum car insurance?

No, it doesn’t. Commercial auto insurance requires more.

The minimum amount of liability insurance required for a commercial motor vehicle is between $750,000 and $1 million.

Hefty coverage limits can help protect your business, and commercial car insurance provides a wider coverage area.

In other words, your commercial insurance company may pay for damages and injuries even if you’re at fault.

State Minimum Car Insurance: The Bottom Line

State minimum auto insurance is just another way of saying liability insurance. Although liability insurance requirements vary by state, most car insurance companies recommend that you buy 50/100/50 coverage limits.

If you’re a high-risk driver, you may need coverage limits as high as 100/300/100.

Before you buy state minimum car insurance, enter your ZIP code in the free comparison tool below to compare multiple insurance companies near you.

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