You need at least $50,000 in bodily injury liability car insurance coverage in most states, along with at least $25,000 in property damage liability insurance. Some states also require drivers to have uninsured motorist coverage and either PIP or MedPay.
A good rule of thumb is to supplement your state’s required auto insurance with enough extra coverage to match your net worth. This may entail increasing your liability coverage limits as well as adding optional types of car insurance such as collision and comprehensive coverage.
Car Insurance Requirements by State
Car Insurance Requirements by State
| State | Bodily Injury Liability (per person) | Bodily Injury Liability (per accident) | Property Damage Liability | Other Requirements |
|---|---|---|---|---|
| Alabama | $25,000 | $50,000 | $25,000 | N/A |
| Alaska | $50,000 | $100,000 | $25,000 | N/A |
| Arizona | $25,000 | $50,000 | $15,000 | N/A |
| Arkansas | $25,000 | $50,000 | $25,000 | N/A |
| California | $15,000 | $30,000 | $5,000 | N/A |
| Colorado | $25,000 | $50,000 | $15,000 | N/A |
| Connecticut | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Delaware | $25,000 | $50,000 | $10,000 | Personal Injury Protection: $15,000 per person ($30,000 per accident) |
| Florida | NA | NA | $10,000 | Personal Injury Protection: $10,000 |
| Georgia | $25,000 | $50,000 | $25,000 | N/A |
| Hawaii | $20,000 | $40,000 | $10,000 | Personal Injury Protection: $10,000 |
| Idaho | $25,000 | $50,000 | $15,000 | N/A |
| Illinois | $25,000 | $50,000 | $20,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Indiana | $25,000 | $50,000 | $25,000 | N/A |
| Iowa | $20,000 | $40,000 | $15,000 | N/A |
| Kansas | $25,000 | $50,000 | $25,000 | Personal Injury Protection: $4,500 Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Kentucky | $25,000 | $50,000 | $25,000 | N/A |
| Louisiana | $15,000 | $30,000 | $25,000 | N/A |
| Maine | $50,000 | $100,000 | $25,000 | Uninsured Motorist: $50,000 per person ($100,000 per accident) MedPay: $2,000 |
| Maryland | $30,000 | $60,000 | $15,000 | Uninsured Motorist: $30,000 per person ($60,000 per accident) $15,000 property damage |
| Massachusetts | $20,000 | $40,000 | $5,000 | Personal Injury Protection: $8,000 Uninsured Motorist: $20,000 per person ($40,000 per accident) |
| Michigan | $50,000 | $100,000 | $10,000 | Personal Injury Protection: $250,000 for most drivers Property Protection Insurance: $1 million |
| Minnesota | $30,000 | $60,000 | $10,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) Personal Injury Protection: $40,000 |
| Mississippi | $25,000 | $50,000 | $25,000 | N/A |
| Missouri | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Montana | $25,000 | $50,000 | $20,000 | N/A |
| Nebraska | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Nevada | $25,000 | $50,000 | $20,000 | N/A |
| New Hampshire | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) MedPay: $1,000 |
| New Jersey | NA | NA | $5,000 | Personal Injury Protection: $15,000 (up to $250,000 for certain injuries) |
| New Mexico | $25,000 | $50,000 | $10,000 | N/A |
| New York | $25,000 | $50,000 | $10,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) Personal Injury Protection: $50,000 |
| North Carolina | $30,000 | $60,000 | $25,000 | Uninsured Motorist: $30,000 per person ($60,000 per accident) $25,000 property damage |
| North Dakota | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) Personal Injury Protection: $30,000 |
| Ohio | $25,000 | $50,000 | $25,000 | N/A |
| Oklahoma | $25,000 | $50,000 | $25,000 | N/A |
| Oregon | $25,000 | $50,000 | $20,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) Personal Injury Protection: $15,000 |
| Pennsylvania | $15,000 | $30,000 | $5,000 | Medical Benefits: $5,000 |
| Rhode Island | $25,000 | $50,000 | $25,000 | N/A |
| South Carolina | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) $25,000 property damage |
| South Dakota | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Tennessee | $25,000 | $50,000 | $25,000 | N/A |
| Texas | $30,000 | $60,000 | $25,000 | N/A |
| Utah | $25,000 | $65,000 | $15,000 | Personal Injury Protection: $3,000 |
| Vermont | $25,000 | $50,000 | $10,000 | Uninsured Motorist: $50,000 per person ($100,000 per accident) $10,000 property damage per accident |
| Virginia | $30,000 | $60,000 | $20,000 | Uninsured Motorist: $30,000 per person ($60,000 per accident) $25,000 property damage |
| Washington | $25,000 | $50,000 | $10,000 | N/A |
| West Virginia | $25,000 | $50,000 | $25,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) $25,000 property damage |
| Wisconsin | $25,000 | $50,000 | $10,000 | Uninsured Motorist: $25,000 per person ($50,000 per accident) |
| Wyoming | $25,000 | $50,000 | $20,000 | N/A |
Types of Auto Insurance Coverage
Liability Insurance
Liability insurance includes both bodily injury liability insurance and property damage liability insurance, which pay for other drivers’ expenses after accidents that you cause. Liability insurance can also cover your legal expenses if you are sued after you cause an accident.
For example, say you were at fault for an accident that injured driver A and wrecked driver B’s car. Your bodily injury liability insurance would pay for driver A’s medical expenses, including hospital bills, doctors’ visits, and medication. Your property damage liability insurance would pay to repair driver B’s car.
However, liability insurance only pays up to your predetermined coverage limits, so your policy may be insufficient to cover all accident-related costs, especially if multiple drivers were involved and you have state-minimum coverage.
- Do I Need It? Yes, liability insurance is required in almost every state.
- Recommendation: You need enough liability insurance to cover your assets.
Personal Injury Protection (PIP)
PIP covers medical costs for you and your passengers after an accident regardless of who was at fault. It can also pay for other accident-related expenses, such as lost wages and childcare.
- Do I Need It? You need PIP if you live in one of the 12 states that require it.
- Recommendation: Even if PIP is optional in your state, it is still worth the investment since it can also cover your passengers and does not have as high of a deductible as most health insurance plans.
Medical Expenses (MedPay)
MedPay is similar to PIP, covering medical costs for you and your passengers after accidents. MedPay can be used for a claim no matter who is at fault for an accident, but it doesn’t cover lost wages and usually has lower policy limits than PIP.
- Do I Need It? Yes, if you live in Maine or New Hampshire where MedPay is required.
- Recommendation: Even if it isn’t required, MedPay is still a worthwhile investment since it is relatively inexpensive and can cover deductibles for PIP and health insurance. The minimum amount of MedPay coverage available is enough for most people in conjunction with their health insurance.
Uninsured/Underinsured Motorist (UM/UIM)
Uninsured/underinsured motorist coverage can help if you’re hit by an uninsured driver, experience a hit-and-run, or collide with someone who doesn’t have enough coverage to pay for all the damage they caused.
- Do I Need It? Twenty states and the District of Columbia require uninsured motorist coverage, and 14 states require underinsured motorist insurance.
- Recommendation: Since it’s pretty affordable and can really come in handy, it’s worth adding uninsured/underinsured motorist coverage to your policy even if it’s not required by law in your state.
Collision Insurance
Collision insurance covers damage to your vehicle after an accident. Collision insurance also comes with a deductible, which is the amount you have to pay out of pocket before insurance pays the rest of the bill. You get to pick your deductible, but lower ones come with higher premiums.
- Do I Need It? If your car is leased or financed, you may be required to have collision insurance.
- Recommendation: Even if it is not required, collision insurance is a good investment for people who cannot afford to replace or repair their vehicles out of pocket after an accident. Collision insurance is also recommended for those who drive often and in high-traffic areas, and people who would rather not spend all of their savings on car repairs or a replacement car after a crash.
Comprehensive Insurance
If your car is damaged by something other than a collision, you’ll need comprehensive coverage for a claim. This includes damage caused by vandalism, theft, weather, and wildlife. Like collision insurance, you’ll have to choose a deductible.
- Do I Need It? If your car is leased or financed, you may be required to have comprehensive insurance.
- Recommendation: Even if it is not required, comprehensive insurance is useful to have, especially if you cannot afford to replace your car out of pocket, you live in an area with high rates of theft or vandalism, or you want to protect yourself from wiping out your savings if your car is seriously damaged.
Guaranteed Auto/Asset Protection (GAP)
Cars depreciate quickly, and you could easily end up owing more on your loan or lease than the vehicle is worth if your car is totaled. Gap insurance bridges that gap and pays the difference if your car is a total loss.
- Do I Need It? If your car is leased or financed, you may be required to have gap insurance.
- Recommendation: If you owe more on a loan or lease than your car is worth, it’s a good idea to have gap insurance.
Emergency Roadside Assistance
Emergency roadside assistance is a coverage option that provides assistance if you lock yourself out of your car, need a tow or jump start, get a flat tire, or run out of gas. If your car is inoperable, you can get a tow to a nearby garage of your choice, up to a specified distance.
- Do I Need It? No, roadside assistance is never required.
- Recommendation: Roadside assistance is worth the investment if you are concerned about the reliability of your vehicle. If you drive often or take long trips, roadside assistance may be a great way to make sure you aren’t left stranded.
Mechanical Breakdown Insurance
Mechanical breakdown insurance (MBI) can cover the cost of repairs to mechanical parts and systems such as a car’s engine, transmission, and power system. This coverage is similar to extended warranties and service contracts, but unlike those products, you pay a monthly premium instead of paying a lump sum up front. MBI also covers more vehicle systems than most extended warranties.
- Do I Need It? No, MBI is never required.
- Recommendation: If you have a new car that you plan to drive for a while, MBI is a fairly inexpensive way to protect your car against malfunctions.
Windshield Insurance / Full Glass Coverage
If you don’t have collision or comprehensive insurance to replace a damaged windshield, you may be able to get windshield insurance instead. Otherwise, a standard liability insurance plan will not pay for repairs or replacement of your own windshield. However, if you are in an accident that is not your fault, the other driver’s liability insurance will pay for your windshield repairs.
- Do I Need It? No, windshield insurance and full glass coverage are never required.
- Recommendation: If you do not have collision or comprehensive coverage, windshield insurance is a simple way to make sure your windshield can be repaired or replaced inexpensively, whether it is damaged in an accident or cracked by a pebble while driving.
Rental Reimbursement Insurance
Rental reimbursement insurance can cover the cost of a rental car while your car is being repaired after an accident. It may also cover other transportation costs like Uber and taxi fare or public transit expenses, depending on your insurer. However, if another driver was at fault for the accident that damaged your vehicle, their liability insurance would cover the cost of a rental car.
- Do I Need It? No, rental reimbursement insurance is always optional.
- Recommendation: Rental reimbursement insurance is worth the investment if you could not afford to rent a car yourself if you cause an accident that damages your car. It may also be worth it if you know that you are more likely to cause an accident than the average driver.
Getting Caught Driving Without Auto Insurance
Driving without minimum auto insurance coverage is very risky. It could even have potentially life-changing consequences. If you’re pulled over and don’t have insurance, you could be hit with fines, license and registration suspensions, and costly insurance premium surcharges. If you’re uninsured or underinsured and get into an accident, you could end up paying thousands out of your own pocket to cover the costs of property damage and medical bills. And if you can’t pay, your wages could be garnished and your assets seized.
Even going with the bare minimum could be a risky choice, since you’ll still be held responsible if something disastrous happens. Remember, insurance only pays up to your coverage limits so the recommended auto insurance coverage is dependent on your net worth.
Video: How Much Car Insurance Do I Need?
Ask the Experts
To gain more insight about how much car insurance one needs, WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.
1. Why do different states have such different car insurance requirements?
2. Should drivers buy more coverage than the state minimum?
3. What car insurance coverage types should drivers consider that are not required?
Ask the Experts
Professor of Business Law, Smeal College of Business, Pennsylvania State University
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Ph.D., Associate Professor of Practice, Heider College of Business, Creighton University
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Ph.D., Charles E. Cheever Chair of Risk Management, Greehey School of Business, St. Mary's University
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Ph.D., Professor, Department of Economics, Applied Statistics, and International Business, College of Business, New Mexico State University
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Assistant Professor of Insurance & Risk Management, Department of Economics, Finance, Insurance & Risk Management, College of Business, University of Central Arkansas
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Foster Farms Endowed Professor, Business Economics Professor, College of Business Administration, California State University, Stanislaus
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