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We often forget that cars are inherently dangerous due to their size, weight and rate of speed. This is why almost every state in the U.S. (New Hampshire is the exception) requires drivers to have car insurance. As a form of financial responsibility, car insurance helps financially protect the driver’s liability if they are at fault for an auto accident. Minimum car insurance coverage requirements vary between states, and while they are cheaper, bare-bones coverage is usually not the best choice for most drivers.
What is the minimum amount of car insurance coverage required?
Many states allow drivers to satisfy minimum requirements in several ways, including through a bond, deposits, evidence of self-insurance or by carrying an auto insurance policy. The coverage levels and types vary between states, so there isn’t one universal minimum requirement. In several states, like Michigan, Minnesota and New Jersey, drivers are required to carry personal injury protection along with liability coverage. No state requires drivers to carry comprehensive or collision coverage, but these coverage types are usually required by your lender if you lease or have a loan on your vehicle.
Below are the coverage types that are often required with minimum car insurance:
- Bodily injury (BI) liability: If you cause an accident with another driver or pedestrian, bodily injury liability coverage will help pay for medical expenses related to the other person’s injuries. It may also cover your legal fees if the other person sues you for their losses.
- Property damage (PD) liability: Property damage liability coverage is designed to pay toward property damage that you cause to others. For example, if you hit another vehicle on the road, your property damage liability insurance could help pay for the other vehicle’s repairs.
- Uninsured/Underinsured motorist coverage (UM/UIM): Uninsured and underinsured motorist coverage offers financial protection in the event of an accident with a driver who is uninsured or does not have enough coverage to pay for your losses.
- Personal injury protection coverage (PIP): PIP is a requirement in states with no-fault laws, however some at-fault states offer it as an option. If you get into an accident, PIP can pay for your medical bills, lost wages, rehabilitation costs and related expenses, regardless of who caused the accident. PIP may also cover your injuries if you are struck by a vehicle as a pedestrian.
- Medical payments coverage (MedPay): Medical payments coverage may help pay your medical expenses following an accident but is typically not as robust as PIP. It is generally considered optional coverage. However, a few states do require drivers to carry medical payments coverage.
The minimum amount of coverage per person and per accident is different depending on your location. To find the exact minimum coverage auto insurance requirements in your state, you can visit your state’s Department of Insurance website or contact your auto insurer.
Do all states require car insurance?
Nearly all states require car insurance for vehicles on the road. New Hampshire is the one exception. However, drivers in New Hampshire must still prove financially responsible for the potential damage they may cause before forgoing a policy. New Hampshire drivers who choose to buy an auto policy must carry a policy that meets the state’s minimum requirements.
Increasing state limits
Each state regulates its insurance laws and can require drivers to carry more coverage or different coverage types. In 2025, California, North Carolina, Utah and Virginia increased minimum coverage requirements to provide more coverage for all drivers.
Minimum coverage car insurance requirements by state
Although insurance carriers will not sell you a policy with less coverage than the state-mandated minimum coverage level, it may still be a good idea to review your state minimum coverage car insurance requirements. Also, remember that you can always purchase more coverage than required if you want additional financial protection. Most insurance professionals recommend getting quotes for multiple coverage levels before choosing your state’s minimum-required insurance, so you can find the coverage you need at a price you can afford.
The table below includes the minimum car insurance requirements in all 50 states and Washington, D.C.
| State | Bodily injury liability and property damage liability | UM/UIM, PIP and MedPay |
|---|---|---|
| Alabama | 25/50/25 | None |
| Alaska | 50/100/25 | None |
| Arizona | 25/50/15 | None |
| Arkansas | 25/50/25 | None |
| California | 30/60/15 | None |
| Colorado | 25/50/15 | None |
| Connecticut | 25/50/25 | 25/50 UM/UIM |
| Delaware | 25/50/10 | 15/30 PIP |
| Florida | $10,000 PDL* | $10,000 PIP |
| Georgia | 25/50/25 | None |
| Hawaii | 20/40/10 | $10,000 PIP |
| Idaho | 25/50/15 | None |
| Illinois | 25/50/20 | 25/50 UM |
| Indiana | 25/50/25 | 25/50 UM; 50 UIM |
| Iowa | 20/40/15 | None |
| Kansas | 25/50/25 | 25/50 UM/UIM$4,500 PIP |
| Kentucky | 25/50/25 | None |
| Louisiana | 15/30/25 | None |
| Maine | 50/100/25 | 50/100 UM/UIM$2,000 MedPay |
| Maryland | 30/60/15 | 30/60/15 UM |
| Massachusetts | 20/40/5 | 20/40 UM$8,000 PIP |
| Michigan | 50/100/10 | Six PIP options: minimum $50,000 for insureds on Medicaid |
| Minnesota | 30/60/10 | 25/50 UM/UIM$40,000 PIP |
| Mississippi | 25/50/25 | None |
| Missouri | 25/50/25 | 25/50 UM/UIM |
| Montana | 25/50/20 | None |
| Nebraska | 25/50/25 | 25/50 UM/UIM |
| Nevada | 25/50/20 | None |
| New Hampshire** | 25/50/25 | 25/50 UM$1,000 MedPay |
| New Jersey | 25/50/25*** | 25/50 UM/UIM$15,000 PIP |
| New Mexico | 25/50/10 | None |
| New York | 25/50/10 | 25/50 UM$50,000 PIP |
| North Carolina | 50/100/50 | 50/100/50 UM/ UIM |
| North Dakota | 25/50/25 | 25/50 UM/UIM$30,000 PIP |
| Ohio | 25/50/25 | None |
| Oklahoma | 25/50/25 | None |
| Oregon | 25/50/20 | 25/50 UM/UIM$15,000 PIP |
| Pennsylvania | 15/30/5 | $5,000 PIP |
| Rhode Island | 25/50/25 | None |
| South Carolina | 25/50/25 | 25/50/25 UM |
| South Dakota | 25/50/25 | 25/50 UM/UIM |
| Tennessee | 25/50/25 | None |
| Texas | 30/60/25 | None |
| Utah | 30/60/25 | $3,000 PIP |
| Vermont | 25/50/10 | 50/100/10 UM |
| Virginia | 50/100/25 | None |
| Washington | 25/50/10 | None |
| Washington, D.C. | 25/50/10 | 25/50/5 UM |
| West Virginia | 25/50/25 | 25/50/25 UM |
| Wisconsin | 25/50/10 | 25/50 UM |
| Wyoming | 25/50/20 | None |
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*Florida only requires PDL and PIP. Minimum BI limits are 10/20 if you do purchase coverage. Drivers who have caused an accident involving bodily injury or death or received certain citations may be required to carry BI limits of 10/20. Drivers convicted of a DUI may be required to carry limits of 100/300.
**New Hampshire does not require car insurance, but these are the minimum limits if you buy a policy to satisfy the financial responsibility law. ***New Jersey limits are based on the “standard policy” minimum coverage requirements for current coverage. These limits reflect the increase that took place in January 2023. New Jersey’s minimum limits will increase again in January 2026, to 35/70/25 for liability and 35/70 for UM/UIM. PIP will remain at $15,000. |
What states do not require car insurance?
Traditional car insurance is not mandatory in all states. Depending on where you live, there may be alternative options, such as putting down a deposit or posting a bond with your state’s Department of Motor Vehicles, which serves as proof of financial responsibility. If you were to get into an accident, that money could be given to the other driver to compensate them for their losses, depending on the circumstances.
The most flexible state for car insurance alternatives is New Hampshire. In New Hampshire, drivers are not required to carry auto insurance, except in cases where they must have an SR-22. Here are the other states that provide the option to use a financial filing in lieu of a traditional auto insurance policy:
| States allowing self-insurance | Minimum self-insurance requirements |
|---|---|
| California | $35,000 cash deposit or surety bond |
| Connecticut | $50,000 cash or its equivalent for first vehicle, $60,000 for the second vehicle, $65,000 for the third and $70,000 for the fourth |
| Florida | $40,000 in unencumbered net worth |
| Georgia | $50,000 surety bond or security deposit and $100,000 net worth |
| Hawaii | $300,000 surety bond |
| North Dakota | $155,000 security deposit per vehicle |
| Pennsylvania | $50,000 in secured collateral for the first vehicle, plus $10,000 each for additional vehicles |
| Vermont | Evidence of $115,000 in net worth |
However, keep in mind that forgoing traditional car insurance comes with its own set of challenges. While the additional requirements for self-insurance vary between states, each state has an approval process and requires the funds to be held separately from your personal finances so they are available immediately if needed. In the event of an at-fault accident, you are required to handle the situation in a similar manner as an insurance company. Any paperwork or legal proceedings are your responsibility (you may hire legal assistance). One benefit of having traditional car insurance is that your carrier’s claims agent will do the bulk of the work on your behalf.
Most insurance professionals recommend higher policy limits than the minimums required by law for greater financial protection, and you may need full coverage depending on your situation. Car insurance is designed to protect your finances from the fallout of vehicle accidents, so having a policy that fits your needs — even if it’s more expensive than the minimum requirements — may save you from financial devastation should the worst happen.
Frequently asked questions
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State minimum car insurance is just that—minimal coverage. The liability limits required may be enough to pay for damage or injuries in a minor accident, but likely not a severe car crash. Also, it does not cover damage to your vehicle if you are at fault for an accident — for this, you will need comprehensive and collision insurance. If you can afford it, many insurance experts recommend purchasing more than the minimum coverage required in your state for additional financial protection. Higher levels of liability coverage are typically surprisingly affordable for drivers with a clean driving history.
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Minimum coverage car insurance will help pay for the injuries and property damage you cause if you’re the driver in an at-fault accident, up the policy limits. In some states, minimum coverage car insurance also includes PIP and uninsured motorist coverage, which can help pay for your injuries in a variety of scenarios. It’s also important to note that unless your state requires uninsured motorist property damage coverage, minimum coverage car insurance doesn’t pay to repair your vehicle, whether you’re at fault or not at fault. Instead, you’ll need to add comprehensive and collision if you want your car covered.
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A full coverage car insurance policy generally includes liability insurance and your state’s other minimum coverage requirements (if applicable), plus collision and comprehensive coverage. Collision insurance covers your vehicle’s repairs after an accident, whereas comprehensive coverage covers your vehicle’s repairs after a non-collision incident, such as theft, vandalism, storm damage or damage from striking an animal. However, the term “full coverage” can mean different things to different insurance carriers — some agents consider full coverage only when extra benefits like rental reimbursement and roadside assistance are also purchased.
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The cost of car insurance may vary greatly for every driver. The average cost of car insurance in the U.S. is $2,638 per year for full coverage and $767 for minimum coverage, according to Bankrate’s study of quoted annual premiums, but your rate may be more or less than the average. That’s because the premiums you pay are calculated using a range of personal factors like your ZIP code, claims history, driving record, coverage options, deductibles and more.
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The rate of uninsured motorists is rising, likely due to the drastic increase in car insurance rates many drivers have experienced over the past few years. However, driving uninsured can lead to even more financial problems. Along with state fines, drivers can have their vehicles impounded, have their license and vehicle registration suspended, and usually pay more for insurance when they restart their policy. On average, drivers with an insurance lapse pay $251 more per year for full coverage auto insurance.
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Yes, your car insurance policy will cover you anywhere you drive in the United States. Your car insurance policy must meet the coverage requirements in the state where the car is registered. However, there are no restrictions for driving in another state where the minimum requirements are higher; if you drive into a state that has higher minimum limits than yours, your minimum coverage policy will adjust up to that state’s limits. You may even have the same coverage if you drive across the border into Canada. However, you should confirm with your car insurance company or agent that you are covered in Canada prior to driving across the border. Most standard U.S. auto policies do not provide coverage in Mexico.
Methodology
Bankrate utilizes Quadrant Information Services to analyze January 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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