Minimum Levels of Required Auto Insurance

All 50 states have different requirements when it comes to budget auto insurance. In some states, motorists can't register a car without showing proof that they have liability insurance, while other states use an "honor system" that doesn't ask for proof of insurance until drivers have accidents or tickets on their records.

Only two states do not require motorists to carry liability coverage, but those that do demand that drivers purchase at least the state's minimum. In other words, if you live in a state that requires liability insurance, you can't walk into your insurance agent's office and buy only $2,000 worth of liability coverage. If you're going to buy it, you must purchase at least the minimum amount required.

How to Read Liability Limits

The following information will help you understand the table of liability limits.

First number: bodily injury liability maximum for one person injured in an accident.

Second number: bodily injury liability maximum for all injuries in one accident.

Third number: property damage liability maximum for one accident.

So, looking at the table below, you find that in Alabama the minimum liability limits are $20,000 for injury liability for one person in an accident, $40,000 for all injuries in an accident, and $10,000 for property damage in an accident.

What is No-Fault?

Some states have "no-fault" laws, meaning your auto policy must pay medical bills for injuries suffered in an auto accident regardless of who caused the accident. The laws were enacted in an attempt to reduce auto-injury fraud and keep car insurance costs down.

State Liability required? PIP required? No-fault state Uninsured

--- Liability --- --- motorists

--- minimums (in --- --- coverage

--- thousands of $) --- --- required?

Alabama Yes, 20/40/10 No No No

Alaska Yes, 50/100/25 No No No

Arizona Yes, 15/30/10 No No No

Arkansas Yes, 25/50/25 Yes No No

California (1) Yes, 15/30/5 No No No

Colorado Yes, 25/50/15 No No No

Connecticut Yes, 20/40/10 No No Yes

Delaware Yes, 15/30/10 Yes No No

Florida (2) No, 10/20/10 Yes Yes No

Georgia Yes, 25/50/25 No No No

Hawaii Yes, 20/40/10 Yes Yes No

Idaho Yes, 25/50/15 No No No

Illinois Yes, 20/40/15 No No Yes

Indiana Yes, 25/50/10 No No No

Iowa Yes, 20/40/15 No No No

Kansas Yes, 25/50/10 Yes Yes Yes

Kentucky Yes, 25/50/10 Yes Yes No

Louisiana Yes, 10/20/10 No No No

Maine (3) Yes, 50/100/25 No No Yes

Maryland (4) Yes, 20/40/15 Yes No Yes

Massachusetts Yes, 20/40/5 Yes Yes Yes

Michigan Yes, 20/40/10 Yes Yes No

Minnesota Yes, 30/60/10 Yes Yes Yes

Mississippi Yes, 25/50/25 No No No

Missouri Yes, 25/50/10 No No Yes

Montana Yes, 25/50/10 No No No

Nebraska Yes, 25/50/25 No No No

Nevada Yes, 15/30/10 No No No

New Hampshire No, 25/50/25 No No Yes

New Jersey (5) Yes, 15/30/5 Yes Yes Yes

New Mexico Yes, 25/50/10 No No No

New York (6) Yes, 25/50/10 Yes Yes Yes

North Carolina Yes, 30/60/25 No No No

North Dakota Yes, 25/50/25 Yes Yes Yes

Ohio Yes, 12.5/25/7.5 No No No

Oklahoma Yes, 25/50/25 No No No

Oregon Yes, 25/50/10 Yes No Yes

Pennsylvania Yes, 15/30/5 Yes Yes No

Rhode Island (2) Yes, 25/50/25 No No Yes

South Carolina Yes, 25/50/25 No No Yes

South Dakota Yes, 25/50/25 No No Yes

Tennessee (2) Yes, 25/50/10 No No No

Texas Yes, 25/50/25 No No No

Utah (2) Yes, 25/50/15 Yes Yes No

Vermont Yes, 25/50/10 No No Yes

Virginia Yes, 25/50/20 Yes No Yes

Washington Yes, 25/50/10 No No No

Washington D.C. Yes, 25/50/10 No No Yes

West Virginia Yes, 20/40/10 No No Yes

Wisconsin No, 25/50/10 No No Yes

Wyoming Yes, 25/50/20 No No No

Courtesy of Insurance Information Institute

1) Low-cost policy limits for drivers in the California Automobile Assigned Risk Plan are 10/20/3.

(2) Instead of policy limits, policyholders can satisfy the requirement with a single combined policy. Amounts vary by state.

(3) In addition, policyholders must carry $1,000 for medical payments.

(4) PIP may be waived for the policyholder but it is compulsory for passengers.

(5) Basic policy (optional) limits are 10/10/5. Uninsured Motorists/Underinsured Motorists coverage is not available under a basic policy but UIM is required under a standard policy.

(6) In addition, policyholders must have 50/100 for wrongful death coverage.

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