State Minimum Car Insurance Requirements (2025)


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Key Takeaways

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Depending on the state, minimum car insurance requirements may include bodily injury liability, property damage liability, uninsured/underinsured motorist and personal injury protection coverage.

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The average annual cost of minimum coverage is $959, compared to $1,895 for full coverage policies with higher limits.

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While minimum coverage is the cheapest insurance you can buy, it may not cover all your expenses after an accident.

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Minimum Car Insurance Requirements by State

Minimum car insurance requirements, including the type and coverage limits, vary by state based on each state's insurance laws and financial responsibility requirements. Find your state's requirements instantly using the table below.

State
Bodily injury liability (per person)
Bodily injury liability (per accident)
Property damage liability (per accident)
Other car insurance requirements

Alabama

$25,000

$50,000

$25,000

None

Alaska

$50,000

$100,000

$25,000

None

Arizona

$25,000

$50,000

$15,000

None

Arkansas

$25,000

$50,000

$25,000

None

California

$30,000

$60,000

$15,000

None

Colorado

$25,000

$50,000

$15,000

None

Connecticut

$25,000

$50,000

$25,000

Uninsured/underinsured motorist bodily injury: $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

District of Columbia

$25,000

$50,000

$10,000

Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident Uninsured/underinsured property damage: $5,000 (subject to $200 deductible)

Florida

$10,000

$20,000

$10,000

Personal injury protection: $10,000

How Much Is Minimum Car Insurance?

If affordability is your priority, minimum car insurance is the cheapest option. The average annual cost of auto insurance policies with state minimum coverage limits is $959, though rates differ by location and personalized factors. 

Full coverage insurance, which includes liability limits of $300,000 for bodily injury per accident, $100,000 per person and $100,000 for property damage, costs an average of $1,895 per year.

Minimum Coverage$80$959
Full Coverage$158$1,895

Key Factors Affecting Your Minimum Insurance Cost

Understanding factors affecting car insurance cost helps explain why you might pay more or less than the state average and identifies areas where you can reduce your premiums.

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    Age and experience impact

    Teenage drivers often pay two to three times more than adult drivers for the same coverage due to higher accident rates and lack of driving experience. Drivers under 25 face the highest premiums, with costs gradually decreasing as drivers gain experience. Senior drivers over 65 may see slight increases due to slower reaction times, but generally pay less than younger drivers.

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    Location makes a major difference

    Your ZIP code impacts insurance costs due to varying accident rates, theft statistics and repair costs. Urban areas usually cost more than rural locations due to higher traffic density and increased theft rates. States with no-fault insurance laws or high litigation rates also drive up minimum coverage costs.

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    Driving record and credit score

    Your driving history is one of the strongest predictors of insurance cost. A single at-fault accident can increase premiums by 20 to 50%, while DUI convictions can double or triple costs. Multiple violations create compounding effects. Credit scores also impact rates in states where allowed, with poor credit increasing premiums. California, Hawaii, Massachusetts and Michigan prohibit using credit scores as a rating factor.

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    Vehicle type and usage

    The car you drive affects minimum insurance costs even though liability coverage doesn't protect your vehicle. Sports cars, luxury vehicles and cars with high theft rates cost more to insure because they're statistically more likely to be involved in serious accidents. Annual mileage also matters. Drivers who commute long distances face higher premiums due to increased accident exposure.

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WHAT STATE DOES NOT REQUIRE CAR INSURANCE?

In New Hampshire, auto insurance isn’t required, but drivers must prove they can cover damages if they cause an accident.

As a tort state, at-fault drivers are responsible for all resulting costs. Buying insurance is optional but recommended. If you choose to get coverage, the state’s minimum requirements are:

  • $25,000 for bodily injury per person
  • $50,000 per accident
  • $25,000 for property damage
  • Uninsured/underinsured motorist coverage matching liability limits
  • At least $1,000 in medical payments coverage

Understanding Required Coverage Types

State minimum car insurance requirements depend on the types of coverage your state mandates. Understanding these different car insurance coverage types helps you ensure compliance with your state's laws and make informed decisions about your protection level.

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    Liability Insurance (Required in All States Except NH)

    What it covers: Pays for damage you cause to other people and their property

    Two components:

    • Bodily Injury Liability: Medical expenses, lost wages, pain and suffering when you injure someone
    • Property Damage Liability: Repair/replacement costs for other people's vehicles and property

    How limits work: Expressed as three numbers (e.g., 25/50/25)

    • First number: Bodily injury per person ($25,000)
    • Second number: Bodily injury per accident ($50,000)
    • Third number: Property damage per accident ($25,000)
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    Uninsured/underinsured motorist (UM/UIM) coverage

    What it covers: Protects you when hit by a driver with no insurance or insufficient coverage

    Two types:

    • Uninsured Motorist: For drivers with no insurance
    • Underinsured Motorist: For drivers whose coverage is insufficient

    Coverage amounts: Usually match your state's minimum liability requirements

    *Required in 22 states

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    Personal injury protection (PIP)

    What it covers: Your own medical expenses and lost wages regardless of who caused the accident

    States requiring PIP: Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota, Utah

    Typical benefits:

    • 80% of medical costs up to policy limit
    • Percentage of lost wages
    • Essential services (childcare, housekeeping)
    • Rehabilitation expenses

    *Required in 12 no-fault states

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    Medical payments coverage (MedPay)

    What it covers: Medical expenses from car accidents regardless of fault

    Key differences from PIP:

    • Lower coverage limits ($1,000-$10,000)
    • Covers only medical and funeral expenses
    • No lost wages or other benefits
    • Supplements health insurance

    Required in Maine, New Hampshire, Pennsylvania

No-Fault vs. At-Fault States

Whether your state follows a no-fault or at-fault insurance system helps determine your minimum coverage requirements. These different systems affect what coverage you must carry and how much you'll pay for state minimum insurance.

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    No-Fault States (12 states)

    Each driver's insurance pays for their own medical expenses regardless of who caused the accident

    Required coverage: PIP mandatory States: Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota, Utah

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    At-Fault States (38 states)

    The driver who caused the accident pays for everyone's injuries and damages

    Required coverage: Generally only liability insurance 

    Additional requirements: Many require uninsured motorist protection

How State Minimum Car Insurance Works

Minimum coverage usually includes liability insurance, which pays for the other driver's bodily injury and property damage expenses when you're at fault. Some states also require additional coverage beyond basic liability, which may include:

  • Uninsured/underinsured motorist (UM/UIM) insurance
  • Personal injury protection (PIP)
  • Medical payments (MedPay)

The limits apply separately to each accident. Once reached, your insurance company pays nothing more. If you cause $100,000 in damages but have only $50,000 in coverage, you're personally liable for the remaining $50,000.

Average Minimum Car Insurance Cost vs. Full Coverage Cost

Car insurance costs vary by state, with some having lower average rates than others. The table below shows each state's average minimum car insurance and full coverage costs.

Alabama$845$1,595
Alaska$694$1,471
Arizona$1,193$2,224
Arkansas$787$1,758
California$974$1,987
Colorado$943$2,249
Connecticut$1,393$2,391
Delaware$1,456$2,438
District of Columbia$1,080$2,002
Florida$1,478$3,448
Georgia$1,486$2,441
Hawaii$515$1,157
Idaho$525$1,073
Illinois$870$1,625
Indiana$638$1,245
Iowa$546$1,313
Kansas$700$1,634
Kentucky$1,211$2,048
Louisiana$1,922$4,142
Maine$498$1,033
Maryland$1,541$2,599
Massachusetts$985$2,083
Michigan$1,509$2,886
Minnesota$814$1,685
Mississippi$854$1,692
Missouri$1,128$2,251
Montana$681$1,610
Nebraska$739$1,674
Nevada$1,786$3,230
New Hampshire$682$1,203
New Jersey$1,754$2,882
New Mexico$790$1,765
New York$1,337$2,397
North Carolina$834$1,632
North Dakota$574$1,249
Ohio$716$1,392
Oklahoma$917$2,035
Oregon$1,170$2,045
Pennsylvania$928$2,170
Rhode Island$1,200$2,140
South Carolina$1,013$1,890
South Dakota$510$1,554
Tennessee$749$1,519
Texas$1,241$2,540
Utah$1,093$1,856
Vermont$431$1,017
Virginia$923$1,502
Washington$914$1,698
West Virginia$850$1,721
Wisconsin$631$1,394
Wyoming$343$1,076

Compare State Minimum Car Insurance Quotes

Several factors help determine the right amount of car insurance, such as your vehicle type and budget. Comparing quotes from multiple providers is key to finding the best policy. Use MoneyGeek's calculator below for quick and accurate quotes.

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$192
High
$139
Average
$87
Low

Rates updated:

Jul 11, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
Capital Insurance Group

Capital Insurance Group

94
/of 100
$87
2
GEICO

GEICO

82
/of 100
$109
3
83
/of 100
$118
4
83
/of 100
$129
5
79
/of 100
$133
6
77
/of 100
$151
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Minimum Car Insurance Money-Saving Tips

Even with minimum coverage, you can lower premiums through discounts, payment choices and smart coverage management.

  1. 1

    Maximize available discounts

    Most insurers offer multiple car insurance discounts that can reduce minimum coverage costs by 10 to 30%. Common discounts include, Multi-policy discount, Bundle auto and home/renters insurance for 5 to 25% savings.

  2. 2

    Strategic coverage and payment options

    While maintaining legal minimums, consider these cost-reduction strategies:

    • Pay annually instead of monthly to avoid installment fees (saves around $50 to 100 per year)
    • Increase deductibles on any optional coverage to lower premiums
    • Review coverage annually to ensure you're not paying for unnecessary extras
    • Consider usage-based insurance if you're a safe driver willing to be monitored
  3. 3

    Shopping and comparison tips

    Insurance rates vary between companies for identical coverage. Get quotes from at least three to five insurers, including national brands and regional companies. Consider direct insurers (online/phone only), which often offer lower rates due to reduced overhead costs.

    Don't just compare prices. Evaluate customer service ratings and claims handling reputation, as the cheapest policy won't help if the company provides poor service when you need to file a claim.

Is Minimum Car Insurance Enough?

Minimum coverage meets legal requirements, but it may not fully protect your finances. Here’s how to assess whether your current policy is enough:

Liability Coverage: Your liability limits should at least match your net worth—including home equity, savings and investments. If you cause $500,000 in damages but only have $50,000 in coverage, you’re on the hook for the rest.

Medical Coverage: In at-fault states, you may have no immediate medical coverage while fault is determined. In no-fault states, make sure your PIP limits cover extended care and lost wages. Factor in your health insurance deductible and out-of-pocket maximums.

Vehicle Protection: If your car were totaled, could you afford to replace it? If not, comprehensive and collision coverage may be worth the cost—especially if you’re still making payments or rely heavily on your vehicle.

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INDUSTRY RECOMMENDATIONS

Basic protection: 100/300/100 coverage ($100,000 bodily injury per person, $300,000 per accident, $100,000 property damage) 

High net worth: 250/500/250 or 500/500/500 limits 

Additional protection: Umbrella policy for $1 million+ extra liability coverage

Calculate How Much Car Insurance You Need

For a personalized assessment tailored to your specific situation, use MoneyGeek's Coverage Needs Calculator below. Input your current financial information and coverage details to identify potential gaps and receive specific recommendations.

Determine How Much Car Insurance You Need

Take our four-step quiz to learn the required and optimal level of car insurance for you.

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Alternatives to Traditional Car Insurance

While most states require traditional auto insurance, some allow alternative ways to meet financial responsibility laws:

    balanceTransfer icon

    Cash deposit programs

    Some states let drivers deposit $30,000–$75,000 with the DMV instead of buying insurance. This deposit acts as a guarantee for accident claims and is held in an interest-bearing account. To qualify, drivers must show proof of substantial liquid assets beyond the deposit. These funds remain tied up and unavailable for other use.

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    Surety bond programs

    A surety bond, typically between $30,000 and $75,000, can satisfy legal requirements in certain states. Bonding companies guarantee payment for claims, but drivers must pay premiums and reimburse the company for any payouts. Most companies require a credit score above 650 and proof of steady income. Unlike deposits, bonds don’t lock up your capital.

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    Self-insurance certificates

    Primarily for large businesses or fleet operators, self-insurance requires a net worth over $1 million and reserves of $500,000 to $1 million. States typically require fleets of 10 to 26+ vehicles. Drivers must prove they can cover potential liability without insurance.

Check with your state’s DMV or insurance department to see which alternatives are available and what’s required to qualify.

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GEOGRAPHIC LIMITATIONS OF ALTERNATIVE INSURANCE OPTIONS

In most cases, alternative insurance options are only valid in the issuing state. This may create complications for drivers who travel often or relocate.

If you move to a state that doesn't recognize your alternative coverage, you must immediately obtain traditional insurance or face penalties for driving without coverage. This limitation makes alternative options impractical for many drivers who need flexibility to travel or relocate for work or personal reasons.

State Minimum Auto Insurance Requirements: Bottom Line

While minimum coverage meets legal compliance and offers the most affordable premiums, it often provides inadequate financial protection that could leave you personally liable for substantial out-of-pocket expenses after a serious accident. Full coverage plans come with higher premiums, but they include collision and comprehensive insurance. They also have higher liability limits. Thus, offering comprehensive financial protection for your assets and future earnings.

Understand your state's specific requirements, evaluate your personal risk factors and assess your financial protection needs to choose the appropriate coverage that balances legal compliance with adequate financial security.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Minimum Car Insurance Requirements: FAQ

We answer common questions about state minimum car insurance to help you understand your coverage needs.

Do all states require car insurance?

What is the cheapest state minimum car insurance?

What happens if you only have minimum coverage in an accident?

Can you drive without car insurance in any state?

What states are no-fault insurance states?

How much is minimum car insurance per month?

What happens if I move to a different state?

What if I only have minimum coverage and get hit by an uninsured driver?

Is minimum car insurance enough?

What's the difference between state minimum and full coverage?

Do I need to carry proof of insurance?

What happens if my insurance lapses?

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State Minimum Requirements for Car Insurance: Our Methodology

We designed our methodology to cut through the confusion and show you exactly what you'll pay for the bare minimum coverage your state requires.

Why This Approach Works for Minimum Coverage Shoppers

Most rate studies focus on full coverage or arbitrary liability limits that don't match what budget-conscious drivers actually need. We analyzed 83,056 quotes from 46 insurers across 473 ZIP codes to show real minimum coverage costs, not inflated numbers that don't apply to your situation. 

Sample Driver Profile

Our quotes reflect a 40-year-old male driver with a Toyota Camry LE who drives 12,000 miles yearly with no violations. This profile represents the demographic most likely to shop for minimum coverage while maintaining clean driving records that qualify for standard rates.

Coverage Standards We Used

We calculated two distinct coverage levels to match different state requirements:

  • National averages: 100/300/100 coverage ($100,000 bodily injury liability per person, $300,000 per accident, $100,000 property damage liability)
  • State averages: 50/100/50 coverage ($50,000 bodily injury liability per person, $100,000 per accident, $50,000 property damage liability)

Both scenarios use $1,000 deductibles for comprehensive and collision when included. This means you pay $1,000 out of pocket before insurance covers the rest. On a $2,000 claim, you pay $1,000 and your insurer pays the remaining $1,000 

Data Sources and Quality

Our analysis draws from Quadrant Information Services and state insurance departments to ensure accuracy. We focused on the specific minimum limits each state actually requires, not generic "liability-only" coverage that might exceed your state's requirements and cost more than necessary.

This targeted approach gives you the exact financial protection your state mandates without paying for coverage you don't legally need.

Learn more about MoneyGeek's methodology.

Minimum Car Insurance Coverage: Related Articles

About Mark Fitzpatrick


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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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