Knowing each state’s car insurance requirements helps you guide clients through personal injury claims. These requirements are designed to reduce the financial burden on drivers and ensure victims receive sufficient compensation for damages.
Key Points
- Car insurance mandates vary by state, with minimum coverage levels in place to safeguard drivers and accident victims from financial loss.
- New Hampshire and Virginia provide alternatives to traditional car insurance, such as financial responsibility bonds or UMV fees.
- Financially stable individuals and businesses in 10 states can opt for self-insurance.
State by State Minimum Car Insurance Requirements
Each state sets its own baseline for liability and property damage coverage to mitigate the financial impact of accidents. The following table provides a breakdown of the auto insurance requirements by state.[1]
| State | Bodily Injury Liability (per person) | Bodily Injury Liability (per accident) | Property Damage Liability | Personal Injury Protection (PIP) | Uninsured/Underinsured Motorist Coverage |
| Alabama | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Alaska | $50,000 | $100,000 | $25,000 | Optional | Optional |
| Arizona | $25,000 | $50,000 | $15,000 | Optional | Optional |
| Arkansas | $25,000 | $50,000 | $25,000 | Optional | Optional |
| California | $15,000 | $30,000 | $5,000 | Optional | Optional |
| Colorado | $25,000 | $50,000 | $15,000 | Optional | Optional |
| Connecticut | $25,000 | $50,000 | $25,000 | Optional | $25,000 per person; $50,000 per accident |
| Delaware | $25,000 | $50,000 | $10,000 | $15,000 per person; $30,000 per accident | Optional |
| Florida | Optional, unless otherwise specified by the state. ($10,000) | Optional, unless otherwise specified by the state. ($20,000) | $10,000 | $10,000 | Optional |
| Georgia | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Hawaii | $20,000 | $40,000 | $10,000 | $10,000 | Optional |
| Idaho | $25,000 | $50,000 | $15,000 | Optional | Optional |
| Illinois | $25,000 | $50,000 | $20,000 | Optional | Optional |
| Indiana | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Iowa | $20,000 | $40,000 | $15,000 | Optional | Optional |
| Kansas | $25,000 | $50,000 | $25,000 | $4,500 per accident | $25,000 per person; $50,000 per accident |
| Kentucky | $25,000 | $50,000 | $25,000 | $10,000 per accident, however PIP coverage can be rejected in writing | Optional, but Kentucky specifies the insurer include UM/UMI at $25,000 per person and $50,000 per accident unless expressly rejected in writing by the policyholder |
| Louisiana | $15,000 | $30,000 | $25,000 | Optional | Optional |
| Maine | $50,000 | $100,000 | $25,000 | Maine requires motorists to carry $2,000 in coverage for any injuries they or their passengers incur | $50,000 per person; $100,000 per accident |
| Maryland | $30,000 | $60,000 | $15,000 | Optional | $30,000 per person; $60,000 per incident; and $15,000 in PD coverage |
| Massachusetts | $20,000 | $40,000 | $5,000 | $8,000 per person in accident | $20,000 per person; $40,000 per incident |
| Michigan | $20,000 | $40,000 | $10,000 | Amount varies depending on health insurance | Optional |
| Minnesota | $30,000 | $60,000 | $10,000 | $20,000 per accident; $20,000 for loss of income per accident | $25,000 per person; $50,000 per accident |
| Mississippi | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Missouri | $25,000 | $50,000 | $25,000 | Optional | $25,000 per person; $50,000 per incident |
| Montana | $25,000 | $50,000 | $20,000 | Optional | Optional |
| Nebraska | $25,000 | $50,000 | $25,000 | Optional | $25,000 per person; $50,000 per accident |
| Nevada | $25,000 | $50,000 | $20,000 | Optional | $25,000 per person and $50,000 per accident |
| New Hampshire | Legally optional, but, if purchased, $25,000 | Legally optional, but, if purchased, $50,000 | Legally optional, but, if purchased, $25,000 | Legally optional, but, if purchased, $1,000 per accident for medical expenses solely | Legally optional, but, if purchased, must match your liability limits |
| New Jersey | $25,000 | $50,000 | $25,000 | $15,000 per accident, plus up to $250,000 for severe injuries for a standard policy (Basic/Standard) | Must match liability limits if purchasing a standard policy |
| New Mexico | $25,000 | $50,000 | $10,000 | Optional | Optional |
| New York | $25,000 | $50,000 | $10,000 | $50,000 per person | $25,000 per person; $50,000 per accident |
| North Carolina | $30,000 | $60,000 | $25,000 | Optional | Must match highest BI minimum ($60,000 per accident) |
| North Dakota | $25,000 | $50,000 | $25,000 | $30,000 maximum per person | $25,000 per person; $50,000 per accident |
| Ohio | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Oklahoma | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Oregon | $25,000 | $50,000 | $20,000 | $15,000 per person | Equal to the state’s liability minimums ($25,000 per person and $50,000 per accident) |
| Pennsylvania | $15,000 | $30,000 | $5,000 | $5,000 per person in medical benefit coverage | Optional |
| Rhode Island | $25,000 | $50,000 | $25,000 | Optional | $25,000 per person and $50,000 per accident |
| South Carolina | $25,000 | $50,000 | $25,000 | Optional | Coverage must equal liability limits ($25,000 per person and $50,000 per accident) |
| South Dakota | $25,000 | $50,000 | $25,000 | Optional | $25,000 per person; $50,000 person incident |
| Tennessee | $25,000 | $50,000 | $25,000 | Optional | Optional |
| Texas | $30,000 | $60,000 | $25,000 | Optional | Optional |
| Utah | $25,000 | $65,000 | $15,000 | $3,000 per person | Optional |
| Vermont | $25,000 | $50,000 | $10,000 | Optional | $50,000 per person; $100,000 per accident; and $10,000 PD |
| Virginia | $30,000 | $60,000 | $20,000 | Optional | Coverage must match your liability limits, so $30,000 per person and $60,000 per incident |
| Washington | $25,000 | $50,000 | $10,000 | Optional | Optional |
| West Virginia | $25,000 | $50,000 | $25,000 | Optional | Coverage must equal liability coverage ($25,000 per person and $50,000 per accident). But there’s also a state maximum of 100/300/50. |
| Wisconsin | $25,000 | $50,000 | $10,000 | Optional | $25,000 per person; $50,000 per accident |
| Wyoming | $25,000 | $50,000 | $20,000 | Optional | Optional |
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Understanding Required Car Insurance Coverages
Below, we take a look at the primary coverages required by various states.[2]
Liability Insurance
At the heart of most auto insurance policies lies liability insurance, split into bodily injury liability and property damage liability.[3] Bodily injury liability addresses the medical expenses, rehabilitation costs, and lost wages of individuals injured in an accident caused by the insured. Property damage liability covers the costs associated with repairing or replacing another party’s property damaged in the accident.[3]
Uninsured/Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage is for when the at-fault driver’s insurance is lacking.[4] Uninsured motorist coverage kicks in when the responsible driver has no insurance, protecting the insured against medical and property damage expenses. Meanwhile, underinsured motorist coverage supplements the shortfall when the at-fault driver’s insurance is insufficient.[4]
Personal Injury Protection (PIP)
PIP provides broad coverage for medical expenses and lost wages, regardless of who’s at fault.[5] Known as “no-fault” insurance, PIP is mandatory in many states and can cover a variety of expenses, including rehabilitation and funeral costs. Attorneys must inform clients about the extensive benefits of PIP to secure comprehensive financial protection after an accident.[5]
Medical Payments Coverage (MedPay)
MedPay mirrors some benefits of PIP but typically offers more limited coverage.[6] It handles medical expenses for the policyholder and passengers, regardless of fault. That includes costs such as hospital visits, surgeries, and diagnostic tests.[6]
Unlike PIP, MedPay does not cover lost wages or non-medical expenses.[6] Attorneys should consider recommending MedPay to clients as it provides an additional safety net for medical costs, enhancing their overall coverage strategy.
Waiting for insurance payouts can place a significant burden on clients. Check out our FAQ page to learn how pre-settlement funding can help them through it.
The Most Common Minimums by Category
These minimums provide a baseline for evaluating and recommending adequate insurance coverage.
Bodily injury liability covers injuries caused by the policyholder. The most common car insurance state minimums are:
Property damage liability addresses damages to another’s property. The prevalent state minimum liability insurance amount is:
- Per accident: $25,000 (required by 28 states)[1]
Uninsured/Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage protects against drivers with insufficient insurance. The common minimums are:
Personal Injury Protection (PIP)
PIP covers medical costs and lost wages, irrespective of fault. The typical auto insurance minimum by state is:
- Minimum coverage: $10,000 (common in 15 states)[1]
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Exceptions to State Minimum Car Insurance Requirements
Attorneys should be aware of the exceptions to state minimum car insurance requirements to advise clients in case damages exceed the minimums.
New Hampshire
New Hampshire doesn’t mandate car insurance for drivers with clean records.[7] Instead, they have to demonstrate financial responsibility by posting a bond or showing sufficient funds to cover potential damages.
To be clear, driving without traditional insurance is legally allowed, but full financial liability rests on the driver in the event of an accident.[7] It’s an attractive option for clients with the financial means to self-insure, but there are significant risks involved.
Virginia
Virginia offers an alternative to traditional car insurance through its Uninsured Motor Vehicle (UMV) fee. By paying $500 annually, drivers can legally operate vehicles without insurance.[8] However, the fee doesn’t provide any protection, leaving drivers personally liable for any damages they cause.
Some states allow self-insurance, in which the owner acts as their insurer and can prove they have the financial means to pay out of pocket should an accident occur. While most states reserve self-insurance for owners of large fleets (25 or more), self-insured insurance is currently allowed in 11 states, including California, Florida, Georgia, Pennsylvania, and Vermont.[9]
Self-insuring can be good for clients with substantial financial resources, as it allows them to avoid traditional insurance premiums while assuming the risk directly.[9] Attorneys should thoroughly evaluate the client’s financial stability and the state-specific requirements to determine if self-insurance is a viable option.
Funding can provide critical financial support to help your clients manage unexpected costs while awaiting settlement. For more detailed guidance, visit our page about how pre-settlement funding works.
How US Claims Can Help
Car accidents often result in significant financial pressures for injured clients, especially during the prolonged settlement process. Use the quick reference guide to automobile insurance requirements by state above to provide guidance to clients.
USClaims provides plaintiffs with immediate financial relief, covering medical bills, living expenses, and other urgent costs. Our pre-settlement funding advances a portion of the anticipated settlement, easing the burden of expenses while clients focus on recovery. As you know, financial support is often vital for those facing ongoing costs during their legal proceedings.
Pre-settlement funding from USClaims helps clients navigate the aftermath of an accident with greater financial stability and peace of mind. For detailed information on the funding process, visit our guide on how pre-settlement funding works or take a look at our settlement funding FAQs for answers to common questions.
The availability of pre-settlement funding varies by state. Contact USClaims for more information.
Sources
- “Minimum Car Insurance Requirements by State.” Policygenius, www.policygenius.com/auto-insurance/car-insurance-required-in-every-state/.
- Norman, Kayda. “State Minimum Car Insurance Requirements.” NerdWallet, 5 Feb. 2024, www.nerdwallet.com/article/insurance/minimum-car-insurance-requirements. Accessed 24 July 2024.
- Fontinelle, Amy. “Liability Car Insurance: Definition, Coverage, Limits, Example.” Investopedia, 31 Aug. 2021, www.investopedia.com/terms/a/automobile-liability-insurance.asp.
- Kagan, Julia. “Uninsured Motorist Coverage (UM): How It Works, Requirements.” Investopedia, 8 July 2024, www.investopedia.com/terms/u/uninsured-motorist-coverage-um.asp.
- Kagan, Julia. “Personal Injury Protection: What It Is, How It Works.” Investopedia, 4 Sept. 2023, www.investopedia.com/terms/p/personal-injury-protection-pip.asp.
- Kagan, Julia. “Medical Payments Coverage (MedPay): Overview and Examples.” Investopedia, 5 Jan. 2021, www.investopedia.com/terms/m/medical-payments-coverage.asp.
- Mandel, Bryce. “Minimum Car Insurance Requirements by State.” Forbes Advisor, 5 Jan. 2024, https://www.forbes.com/advisor/car-insurance/minimum-required-in-state/. Accessed 24 July 2024.
- New York Civil Justice Institute. “How New York’s Hostile Liability Environment Inflates Insurance Costs and Fleeces Empire State Families.” Adobe Acrobat, https://acrobat.adobe.com/id/urn:aaid:sc:US:2de7b5f8-2913-4ed4-8ec4-625d1ca07466. Accessed 24 July 2024.
Robinson, Daniel. “What Is Self-Insured Car Insurance? (2024).” Marketwatch.com, MarketWatch – Guides, 15 May 2024, www.marketwatch.com/guides/insurance-services/self-insured-car-insurance/.