State Minimum Car Insurance Requirements

All states (except New Hampshire) require drivers to carry at least liability coverage to meet minimum insurance requirements, with limits varying by state.

Find out if you're overpaying for car insurance below.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Venus Zoleta

Contributions by 2 experts

Updated: June 24, 2025

Advertising & Editorial Disclosure

Key Takeaways

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

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

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

What Is the State Minimum for Car Insurance?

Every state, except New Hampshire, requires minimum liability insurance, which may include bodily injury liability insurance, property damage liability insurance, uninsured/underinsured motorist insurance for bodily injury, uninsured/underinsured motorist insurance for property damage and personal injury protection or medical payments coverage to ensure drivers can meet their financial responsibility obligations after causing accidents.

State minimum car insurance represents the legally required coverage amounts drivers must maintain to register and operate a vehicle in their state. While state minimums meet legal requirements, they often provide limited financial protection. Many insurance experts recommend purchasing coverage beyond these minimums to better protect your assets and avoid out-of-pocket expenses after an accident.

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
Georgia	$25,000	$50,000	$25,000	None
Hawaii	$20,000	$40,000	$10,000	Personal injury protection: $10,000
Idaho	$25,000	$50,000	$15,000	None
Illinois	$25,000	$50,000	$20,000	Uninsured motorist bodily injury: $25,000 per person $50,000 per accident
Indiana	$25,000	$50,000	$25,000	None
Iowa	$20,000	$40,000	$15,000	None
Kansas	$25,000	$50,000	$25,000	Personal injury protection: $4,500 Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Kentucky	$25,000	$50,000	$25,000	Personal injury protection: $10,000
Louisiana	$15,000	$30,000	$25,000	None
Maine	$50,000	$100,000	$25,000	Medical payments: $2,000 Uninsured/underinsured motorist bodily injury: $50,000 per person $100,000 per accident
Maryland	$30,000	$60,000	$15,000	Personal injury protection: $2,500 Uninsured/underinsured motorist bodily injury: $30,000 per person $60,000 per accident Uninsured motorist property damage: $15,000
Massachusetts	$20,000	$40,000	$5,000	Personal injury protection: $8,000 per accident Uninsured/underinsured motorist bodily injury: $20,000 per person $40,000 per accident
Michigan	$20,000	$40,000	$10,000 (for damage your vehicle does to property in another state)	Personal injury protection: Unlimited per person Unlimited per accident Property protection: $1 million
Minnesota	$30,000	$60,000	$10,000	Personal injury protection: $40,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Mississippi	$25,000	$50,000	$25,000	None
Missouri	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Montana	$25,000	$50,000	$20,000	None
Nebraska	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Nevada	$25,000	$50,000	$20,000	None
New Hampshire	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
New Jersey	$15,000	$15,000	$5,000	None
New Mexico	$25,000	$50,000	$10,000	None
New York	$25,000	$50,000	$10,000	Personal injury protection: $50,000 per person Liability for death: $50,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
North Carolina	$30,000	$60,000	$25,000	Uninsured/underinsured motorist bodily injury: $30,000 per person $60,000 per accident Uninsured/underinsured motorist property damage: $25,000
North Dakota	$25,000	$50,000	$25,000	Personal injury protection: $30,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Ohio	$25,000	$50,000	$25,000	None
Oklahoma	$25,000	$50,000	$25,000	None
Oregon	$25,000	$50,000	$20,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Pennsylvania	$15,000	$30,000	$5,000	Medical payments coverage: $5,000
Rhode Island	$25,000	$50,000	$25,000 *or $75,000 combined single limit	None
South Carolina	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
South Dakota	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Tennessee	$25,000	$50,000	$15,000	None
Texas	$30,000	$60,000	$25,000	None
Utah	$30,000	$65,000	$25,000	Personal injury protection: $3,000 per person Uninsured motorist coverage: $30,000 per person $65,000 per accident
Vermont	$25,000	$50,000	$10,000	Uninsured/underinsured motorist bodily injury: $50,000 per person $100,000 per accident Uninsured/underinsured property damage: $10,000
Virginia	$50,000	$100,000	$25,000	None
Washington	$25,000	$50,000	$10,000	None
West Virginia	$25,000	$50,000	$25,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Wisconsin	$25,000	$50,000	$10,000	Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident
Wyoming	$25,000	$50,000	$20,000	None

What State Does Not Require Car Insurance?

In New Hampshire, drivers aren't required to have auto insurance to operate a vehicle legally. Instead, they must demonstrate financial responsibility by showing proof they can personally cover damages if they cause an accident.

Since New Hampshire is a tort state, drivers who cause accidents must pay for the resulting damages out of pocket or through alternative financial responsibility methods. Purchasing car insurance remains a smart choice for comprehensive financial protection. If you decide to buy a policy, the state's minimum coverage requirements are:

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

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:

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.

State Minimum Insurance 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.

Liability Coverage

Liability insurance is required in nearly all states and covers damages you cause to other people and their property. This coverage has two components: bodily injury liability, which pays for medical expenses, lost wages, pain and suffering and other damages when you injure someone in an accident you cause, and property damage liability, which covers the cost to repair or replace other people's vehicles, buildings, or property you damage.

Most states express liability requirements using three numbers, such as 25/50/25. The first number indicates bodily injury liability per person (maximum paid for one person's injuries), the second shows bodily injury liability per accident (maximum paid for all injuries in one accident), and the third represents property damage liability per accident (maximum paid for property damage you cause). All of these limits are in thousands of dollars.

Uninsured/Underinsured motorist (UM/UIM) Coverage

Uninsured/Underinsured motorist (UM/UIM) coverage protects you when you're hit by a driver with no insurance or insufficient coverage to pay for your damages. Many states require this coverage because a significant percentage of drivers operate vehicles without adequate insurance. The required amounts usually match the state's minimum liability requirements, ensuring you have the same level of protection whether the at-fault driver has insurance or not. Some states distinguish between uninsured motorist coverage (for drivers with no insurance) and underinsured motorist coverage (for drivers whose insurance is insufficient to cover your damages), while others require both bodily injury and property damage uninsured motorist protection.

Personal Injury Protection (PIP)

Personal Injury Protection, commonly called PIP, is mandatory in no-fault states and pays for your own medical expenses, lost wages and other specified benefits regardless of who caused the accident, allowing for faster claim processing without waiting for fault determination. PIP requirements vary by state, with most policies covering 80% of medical expenses up to the policy limit, along with a percentage of lost wages and essential services like childcare or housekeeping. Unlike liability insurance, PIP is "first-party" coverage that protects you and your passengers directly, and some policies also include death benefits and rehabilitation expenses, making them comprehensive protection for accident-related costs.

Medical Payments Coverage (MedPay)

Medical payments coverage, also called MedPay, pays for medical expenses resulting from car accidents regardless of fault, similar to PIP but with more limited benefits and lower coverage limits. Medical payments coverage usually covers only medical and funeral expenses up to the policy limit, while PIP provides broader benefits. Medical payments coverage has lower limits than PIP, often $1,000 to $10,000, and serves as a supplement to health insurance rather than primary coverage, providing immediate access to medical care while the fault is being determined in at-fault states.

No-Fault vs. At-Fault States: How This Affects Your State Minimum Requirements

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

No-fault states require drivers to carry Personal Injury Protection (PIP) coverage that pays for their own medical expenses and lost wages regardless of who caused the accident. Twelve states require PIP coverage: Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota and Utah. These states have higher minimum coverage requirements because PIP and liability insurance are mandatory.
At-fault states determine who caused the accident, and that person's insurance pays for everyone's injuries and damages. Thirty-eight states follow at-fault insurance laws, generally requiring only liability coverage for bodily injury and property damage. These states have lower base minimum requirements since PIP coverage isn't mandatory. However, many at-fault states require additional coverage, like uninsured motorist protection, to ensure adequate financial protection when other drivers lack sufficient insurance.

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

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

Key Factors Affecting Your Minimum Insurance Cost

While state averages provide a baseline, your actual minimum insurance cost depends on several personal factors that insurers use to assess your risk level. Understanding these factors helps explain why you might pay more or less than the state average and identifies areas where you can reduce your premiums.

Age and Experience Impact

Teenage drivers often pay 2-3 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.

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.

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 20-50%, while DUI convictions can double or triple costs. Multiple violations create compounding effects. In states where allowed, credit scores also impact rates, with poor credit increasing premiums. California, Hawaii, Massachusetts and Michigan prohibit using credit scores as a rating factor.

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.

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.

	Insurance Carrier	MoneyGeek ScoreMG Score	Average Monthly Payment
1	Capital Insurance Group	94 /of 100	$87
2	GEICO	82 /of 100	$109
3	State Farm	83 /of 100	$118
4	Travelers	83 /of 100	$129
5	Progressive	79 /of 100	$133
6	Farmers	77 /of 100	$151

Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

Cheap State Minimum Car Insurance: Tips to Lower Costs

Even if you're limited to minimum coverage requirements, numerous strategies can help reduce your premiums without sacrificing legal compliance. These cost-saving approaches range from taking advantage of available discounts to making smart choices about payment methods and coverage management.

1
Maximize Available Discounts
Most insurers offer multiple car insurance discounts that can reduce minimum coverage costs by 10-30%. Common discounts include:
- Multi-policy discount: Bundle auto and home/renters insurance for 5-25% savings
- Good driver discount: Maintain a clean driving record for 10-20% off
- Good student discount: Students with B+ averages can save 10-15%
- Defensive driving course: Complete approved courses for a 5-10% discount
- Low mileage discount: Drive fewer than 7,500 miles annually for potential savings
- Automatic payment discount: Set up autopay for 2-5% off
- Paperless billing discount: Go digital for small but cumulative savings
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 $50-100 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
Shopping and Comparison Tips
Insurance rates vary between companies for identical coverage. Get quotes from at least 3-5 insurers, including both 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. Saving money is important, but you need to make sure you're not sacrificing adequate financial protection. The cheapest car insurance policy won't help if it leaves you financially vulnerable after a serious accident.

Is Minimum Car Insurance Enough?

You've got the minimum coverage your state requires, but you might be wondering if it's actually enough. Meeting minimum requirements is the first step in financial protection, but it's designed for basic legal compliance, not comprehensive protection for your specific situation. Here's how to determine if your current coverage adequately protects your assets and financial well-being.

Check Your Liability Protection: Your liability coverage should generally equal or exceed your total net worth. Add up your assets, including home equity, savings, investments and retirement accounts. If you cause a serious accident resulting in $500,000 in damages but only have $50,000 in liability coverage, you could be personally responsible for the remaining $450,000. Your liability limits should protect these assets from potential lawsuits.
Evaluate Your Medical Coverage: Consider whether your current coverage adequately handles medical expenses from a serious accident. If you live in an at-fault state, you may have no immediate medical coverage while fault is determined. If you're in a no-fault state, check if your PIP limits would cover extended medical care, rehabilitation and lost wages during recovery. Your health insurance deductible and out-of-pocket maximums should also factor into this calculation.
Assess Vehicle Protection Needs: If your car were totaled tomorrow, could you afford to replace it without financial hardship? If you're still making car payments or can't easily absorb the loss, comprehensive and collision coverage may be essential. Consider your vehicle's value, your savings and whether you could manage without a car while saving for a replacement.

State Minimum Car Insurance vs. Full Coverage Car Insurance

When buying car insurance, know the difference between policy types. Minimum coverage policies meet state requirements but don't include collision or comprehensive insurance. Full coverage policies include both of these protections plus higher liability limits.

Comprehensive insurance: Covers non-accident damage like theft, vandalism, fire, severe weather, animal strikes and cracked windshields
Collision insurance: Pays for repairs if your car is damaged in a crash, hits a stationary object like a tree or pole or is involved in a rollover or pothole accident

Leasing agreements usually mandate full coverage for the lease term and often have more stringent requirements than financed purchases. Lessors may require higher liability limits (often 100/300/50 or higher), lower deductibles and additional coverage like rental reimbursement. Failure to maintain required coverage can result in force-placed insurance, where the lender purchases expensive coverage and adds the premium to your loan payments.

Why State Minimum Car Insurance Is Often Inadequate

State minimum requirements were established decades ago when vehicle prices and medical costs were lower. Today's average new car costs $48,799, while many states require only $10,000-$25,000 in property damage coverage. Serious injuries from car accidents can result in substantial medical costs, yet many states require only $25,000 per person in bodily injury coverage.

Since costs from at-fault accidents often exceed minimum limits, the consequences extend beyond immediate out-of-pocket costs. If a court awards a judgment against you, it can result in wage garnishment, property liens and seizure of bank assets. In some cases, especially those involving DUI or gross negligence, bankruptcy may not eliminate the judgment, leaving long-term financial consequences.

Calculate How Much Car Insurance You Need

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

Determine How Much Car Insurance You Need

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

Enter Your ZIP Code

Please enter a valid US ZIP Code

INDUSTRY-STANDARD COVERAGE

Insurance experts often recommend liability limits of at least 100/300/100 as a practical minimum for most drivers. Drivers with significant assets should consider 250/500/250 or 500/500/500 limits to adequately protect their wealth. Many insurers offer umbrella policies providing $1 million or more in additional liability coverage for relatively low premiums

What Happens If You Don't Have Car Insurance?

Driving without car insurance in states that require it can lead to license and registration suspensions, costly fines, and court-mandated requirements like SR-22 filings. In many states, first offenses may result in temporary suspensions, but repeat violations often carry longer penalties, sometimes up to several years. These violations also come with financial consequences, which may include court costs, reinstatement fees and higher car insurance rates due to SR-22 status. Beyond the penalties, uninsured drivers face full personal liability for any damages or injuries they cause. Even minor accidents can create lasting financial strain from medical bills, property damage, legal fees and potential wage garnishment.

In some states, repeat offenses or accidents involving serious harm can lead to criminal charges, ranging from misdemeanors to felonies. Criminal records can limit job opportunities, delay license reinstatement and trigger court-ordered driving courses or testing. States with especially strict enforcement may add vehicle impoundment fees, extended suspensions and thousands of dollars in fines. For uninsured drivers in no-fault states, the risks grow even more serious. Without coverage, they lose access to Personal Injury Protection and face a greater chance of personal lawsuits.

WHAT IF YOU GET CAUGHT DRIVING WITHOUT INSURANCE?

If you're already facing penalties for driving without insurance, taking immediate action can help minimize long-term consequences and expedite the reinstatement process. Obtain insurance coverage as quickly as possible, even if you're already facing charges, understand your state's specific reinstatement requirements and timeline. Consider consulting with a legal professional for serious violations or repeat offenses and keep all related documentation for future reference and compliance verification.

It may take several weeks to complete the reinstatement process. During this time, you can't legally operate a vehicle, potentially affecting your ability to work or meet other obligations.

Alternatives to Traditional Car Insurance

While most states require drivers to carry traditional auto insurance, several alternatives exist that may satisfy legal requirements under specific circumstances.

Cash Deposit Programs

Some states allow drivers to make cash deposits with the state Department of Motor Vehicles as an alternative to traditional insurance. These programs require substantial upfront deposits that usually range from $30,000 to $75,000, depending on the state. To qualify for cash deposit programs, drivers must meet specific financial requirements beyond the deposit amount itself, often requiring proof of liquid assets well beyond the required deposit. The cash deposit serves as security for potential accident claims, and states hold these funds in interest-bearing accounts. However, the money remains tied up and unavailable for other uses while serving as your financial responsibility guarantee.

Surety Bond Programs

Several states accept surety bonds as proof of financial responsibility, with bond amounts generally ranging from $30,000 to $75,000. Unlike cash deposits, surety bonds involve working with bonding companies that guarantee payment of claims up to the bond amount. Surety bond eligibility depends on both state requirements and bonding company criteria, with most bonding companies requiring credit scores above 650 and proof of steady income sufficient to pay bond premiums. The primary advantage of surety bonds over cash deposits is that they don't tie up large amounts of your capital, though you must pay ongoing premiums to maintain the bond and remain personally responsible for reimbursing the bonding company for any payments made on your behalf.

Self-Insurance Certificates

A limited number of states offer self-insurance certificates for qualifying applicants, primarily designed for large corporations, government entities or drivers with substantial vehicle fleets. These programs have the most stringent qualification requirements, usually requiring applicants to demonstrate net worth exceeding $1 million, maintain minimum cash reserves of $500,000 to $1 million specifically designated for potential claims, and operate fleets ranging from 10 to 26 or more vehicles depending on the state. Drivers seeking self-insurance must usually prove substantial net worth and establish dedicated reserve funds equal to potential maximum liability exposure in their state.

Check your specific state's financial responsibility laws to determine whether self-insurance alternatives are available and what eligibility requirements apply. Contact your state's Department of Motor Vehicles or insurance department to obtain accurate, up-to-date information.

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

This guide explains state minimum car insurance requirements and explores mandated coverage types, average costs, factors affecting premiums and comparisons between minimum and full coverage policies. 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.

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?

No, not all states require car insurance. New Hampshire is the only state that doesn't require drivers to carry car insurance. However, New Hampshire drivers must still demonstrate financial responsibility and prove they can pay for damages if they cause an accident. All other 49 states and Washington D.C. require some form of car insurance or financial responsibility coverage.

What is the cheapest state minimum car insurance?

The cheapest state minimum car insurance requirements are found in states with lower liability limits and no additional mandatory coverage. However, the actual cost of insurance depends on many factors beyond state minimums, including your location, driving record, age and the insurance company you choose.

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

If you only have minimum coverage and cause a serious accident, you could be personally responsible for damages exceeding your policy limits. For example, if you cause $100,000 in damages but only have $25,000 in property damage coverage, you'd owe $75,000 out of pocket. The other party could sue you for the remaining amount, potentially resulting in wage garnishment or asset seizure. Minimum coverage also usually doesn't include comprehensive or collision coverage, meaning your own vehicle repairs wouldn't be covered.

Can you drive without car insurance in any state?

You can't legally drive without some form of financial responsibility in any state. While New Hampshire doesn't require insurance, drivers must still prove they can pay for damages they cause. Some states allow alternatives like cash deposits or surety bonds, but these require substantial upfront investments (around $30,000-$75,000). For most drivers, traditional car insurance is the most practical and affordable way to meet legal requirements.

What states are no-fault insurance states?

The 12 no-fault insurance states are Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New York, North Dakota and Utah. These states require Personal Injury Protection (PIP) coverage, which pays for your own medical expenses regardless of who caused the accident. Three states (Kentucky, New Jersey, and Pennsylvania) are considered "choice no-fault" states, allowing drivers to choose between no-fault benefits or the right to sue for damages.

How much is minimum car insurance per month?

The cost of minimum car insurance varies considerably by state and individual factors. On average, minimum coverage costs around $80 per month, but this can range from as low as $29 to over $160. No-fault states have higher minimum coverage costs due to mandatory PIP coverage. Your actual cost depends on your age, driving record, location, credit score and the insurance company you choose.

What happens if I move to a different state?

When you move to a different state, you must update your car insurance to meet your new state's requirements, usually within 30 days. Your new state may require different coverage types or higher limits than your previous state. For example, moving from a state that doesn't require PIP coverage to a no-fault state means you'll need to add PIP to your policy. Contact your insurance company immediately after moving to ensure your policy complies with your new state's laws and avoid potential penalties or coverage gaps.

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

If you only have minimum coverage and are hit by an uninsured driver, your protection depends on whether your state requires uninsured motorist coverage. If your state mandates this coverage, your insurance will pay for your injuries and damages up to your policy limits. If uninsured motorist coverage isn't required in your state and you didn't purchase it, you may have to pay for your own medical expenses and vehicle repairs or pursue legal action against the uninsured driver to recover costs.

Is minimum car insurance enough?

Minimum car insurance provides basic legal compliance but is often insufficient for comprehensive protection. State minimums are designed to ensure all drivers have some coverage, not to provide adequate protection for serious accidents. If you have assets to protect or can't afford to replace your vehicle, you likely need coverage beyond state minimums.

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

State minimum coverage includes only the legally required liability insurance and any mandatory coverage like PIP or uninsured motorist protection. Full coverage includes state minimums plus comprehensive and collision coverage for your own vehicle, higher liability limits and additional optional coverage. While "full coverage" isn't an official insurance term, it generally refers to a policy that provides comprehensive protection for both liability and physical damage to your vehicle.

Do I need to carry proof of insurance?

Yes, you must carry proof of insurance while driving in all states that require coverage. Most states accept digital proof on your smartphone, but some may require physical cards. You must present proof when requested by law enforcement, when renewing your registration, or after an accident. Failure to provide proof can result in fines, license suspension or other penalties, even if you have valid coverage.

What happens if my insurance lapses?

If your insurance lapses, you could face immediate consequences, including license suspension, vehicle registration suspension, fines and SR-22 filing requirements. Many states have electronic monitoring systems that detect when coverage ends. Even a brief lapse can result in penalties. If your insurance lapses and you're in an accident, you'll be personally responsible for all damages and could face additional criminal charges for driving without insurance.

State Minimum Requirements for Car Insurance: Our Methodology

Finding affordable minimum coverage feels overwhelming when rates vary drastically by state and insurer. 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

Auto Insurance

Compare Car Insurance (2025)

Auto Insurance

What is Liability Insurance Coverage?

Auto Insurance

Cheapest Liability-Only Car Insurance in 2025

Auto Insurance

How Much Car Insurance Do I Need?

Auto Insurance

Best Car Insurance Companies in 2025

Auto Insurance

Calculate and Compare Car Insurance Quickly and Anonymously

Auto Insurance

Average Cost of Car Insurance in 2025

Auto Insurance

Average Car Insurance Rates by Age and Gender in 2025

Auto Insurance

Cheapest Car Insurance Companies in 2025

About Mark Fitzpatrick

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.

Read Full Bio »

sources

Cox Automotive. "Kelley Blue Book Report: New-Vehicle Prices Hold Steady in May, As Automakers and Dealers Work To Offset Tariff-Driven Cost Increases." Accessed June 23, 2025.

State Minimum Car Insurance Requirements

Key Takeaways

Compare Auto Insurance Rates

What Is the State Minimum for Car Insurance?

Minimum Car Insurance Requirements by State

What State Does Not Require Car Insurance?

How State Minimum Car Insurance Works

State Minimum Insurance Coverage Types

Liability Coverage

Uninsured/Underinsured motorist (UM/UIM) Coverage

Personal Injury Protection (PIP)

Medical Payments Coverage (MedPay)

No-Fault vs. At-Fault States: How This Affects Your State Minimum Requirements

How Much Is Minimum Car Insurance?

Average Minimum Car Insurance Cost vs. Full Coverage Cost

Key Factors Affecting Your Minimum Insurance Cost

Age and Experience Impact

Location Makes a Major Difference

Driving Record and Credit Score

Vehicle Type and Usage

Compare State Minimum Car Insurance Quotes

Car Insurance Calculator

Capital Insurance Group

GEICO

State Farm

Travelers

Progressive

Farmers

Your Next Step:

Cheap State Minimum Car Insurance: Tips to Lower Costs

Maximize Available Discounts

Strategic Coverage and Payment Options

Shopping and Comparison Tips

Is Minimum Car Insurance Enough?

State Minimum Car Insurance vs. Full Coverage Car Insurance

Why State Minimum Car Insurance Is Often Inadequate

Calculate How Much Car Insurance You Need

Determine How Much Car Insurance You Need

Enter Your ZIP Code

INDUSTRY-STANDARD COVERAGE

What Happens If You Don't Have Car Insurance?

WHAT IF YOU GET CAUGHT DRIVING WITHOUT INSURANCE?

Alternatives to Traditional Car Insurance

Cash Deposit Programs

Surety Bond Programs

Self-Insurance Certificates

GEOGRAPHIC LIMITATIONS OF ALTERNATIVE INSURANCE OPTIONS

State Minimum Auto Insurance Requirements: Bottom Line

Compare Auto Insurance Rates

Minimum Car Insurance Requirements: FAQ

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?

State Minimum Requirements for Car Insurance: Our Methodology

Minimum Car Insurance Coverage: Related Articles

sources