Minimum Car Insurance Coverage Requirements in Each State

Thomas Barwick/Getty Images

We often forget that cars are inherently dangerous due to their size, weight and rate of speed. This is why almost every state in the U.S. (New Hampshire is the exception) requires drivers to have car insurance. As a form of financial responsibility, car insurance helps financially protect the driver’s liability if they are at fault for an auto accident. Minimum car insurance coverage requirements vary between states, and while it is cheaper, bare-bones coverage is usually not the best choice for most drivers.

What is the minimum amount of car insurance coverage required?

Each state sets its own minimum car insurance requirements, so coverage types and limits vary. Liability coverage is required in every state that mandates car insurance, and the limits are typically expressed in a three-number format (e.g., 25/50/25), which refers to the amount your insurer will pay for bodily injury per person, bodily injury per accident and property damage per accident, respectively.

Below is an overview of how liability coverage can protect your finances when you cause an accident, along with additional coverage types that may be required depending on your state’s rules:

• Bodily injury (BI) liability: If you cause an accident with another driver or pedestrian, bodily injury liability coverage will help pay for medical expenses related to the other person’s injuries. It may also cover your legal fees if the other person sues you for their losses.
• Property damage (PD) liability: Property damage liability coverage is designed to pay toward property damage that you cause to others. For example, if you hit another vehicle on the road, your property damage liability insurance could help pay for the other vehicle’s repairs.
• Uninsured/Underinsured motorist coverage (UM/UIM): Uninsured and underinsured motorist coverage offers financial protection in the event of an accident with a driver who is uninsured or does not have enough coverage to pay for your losses.
• Personal injury protection coverage (PIP): PIP is a requirement in states with no-fault laws, however some at-fault states offer it as an option. If you get into an accident, PIP can pay for your medical bills, lost wages, rehabilitation costs and related expenses, regardless of who caused the accident. PIP may also cover your injuries if you are struck by a vehicle as a pedestrian.
• Medical payments coverage (MedPay): Medical payments coverage may help pay your medical expenses following an accident but is typically not as robust as PIP. It is generally considered optional coverage. However, a few states do require drivers to carry medical payments coverage.

While meeting your state’s minimum insurance requirements will legally qualify you to drive, most insurance professionals recommend purchasing higher coverage limits or upgrading to a full coverage policy for stronger financial protection in more situations on the road. Car insurance is designed to protect your finances from the fallout of vehicle accidents, so having a policy that fits your needs — even if it’s more expensive than the minimum requirements — may save you from financial devastation should the worst happen.

Do all states require car insurance? 

Nearly all states require car insurance for vehicles on the road. New Hampshire is the one exception. However, drivers in New Hampshire must still prove financially responsible for the potential damage they may cause before forgoing a policy. New Hampshire drivers who choose to buy an auto policy must carry a policy that meets the state’s minimum requirements.

Minimum coverage car insurance requirements by state

Although insurance carriers will not sell you a policy with less coverage than the state-mandated minimum coverage level, it may still be a good idea to review your state minimum coverage car insurance requirements. Also, remember that you can always purchase more coverage than required if you want additional financial protection. Most insurance professionals recommend getting quotes for multiple coverage levels before choosing your state’s minimum-required insurance, so you can find the coverage you need at a price you can afford.

The table below includes the minimum car insurance requirements in all 50 states and Washington, D.C.

*Florida only requires PDL and PIP. Minimum BI limits are 10/20 if you do purchase coverage. Drivers who have caused an accident involving bodily injury or death or received certain citations may be required to carry BI limits of 10/20. Drivers convicted of a DUI may be required to carry limits of 100/300.

**New Hampshire does not require car insurance, but these are the minimum limits if you buy a policy to satisfy the financial responsibility law.

***New Jersey limits are based on the “standard policy” minimum coverage requirements for current coverage. These limits reflect the increase that took place in January 2023. New Jersey’s minimum limits will increase again in January 2026, to 35/70/25 for liability and 35/70 for UM/UIM. PIP will remain at $15,000.

What states do not require car insurance?

The only state where car insurance remains optional with just proof of financial responsibility is New Hampshire — unless it’s required by an SR-22 following an accident or serious traffic violation. Virginia also previously allowed drivers to forgo car insurance, but as of July 1, 2024, coverage is now mandatory. 

Some states allow drivers to apply for self-insurance instead of purchasing a policy from a traditional car insurance provider. This application process typically involves demonstrating sufficient net worth and posting a surety bond or cash deposit with the state’s DMV or insurance department. The required amount varies significantly by state, sometimes matching the total minimum coverage limits and other times being substantially higher. Approval for self-insurance is not guaranteed and may be subject to ongoing financial review.

In the event of an at-fault accident with self-insurance, you are required to handle the situation as an insurance company would. That means investigating the incident, paying for damages and managing any legal proceedings. One key benefit of traditional car insurance is that your insurer not only assigns a claims representative to handle these tasks on your behalf but also assumes financial burden up to your policy’s coverage limits.

Frequently asked questions

• Is it better to get minimum coverage or full coverage?
  

  State minimum car insurance is just that — minimal coverage.  The liability limits required may be enough to pay for damage or injuries in a minor accident, but likely not a severe car crash. Also, it does not cover damage to your vehicle if you are at fault for an accident — for this, you will need comprehensive and collision insurance. If you can afford it, many insurance experts recommend purchasing more than the minimum coverage required in your state for additional financial protection. Higher levels of liability coverage are typically surprisingly affordable for drivers with a clean driving history.

• What does minimum coverage car insurance cover?
  

  Minimum coverage car insurance will help pay for the injuries and property damage you cause if you’re the driver in an at-fault accident, up the policy limits. In some states, minimum coverage car insurance also includes PIP and uninsured motorist coverage, which can help pay for your injuries in a variety of scenarios. It’s also important to note that unless your state requires uninsured motorist property damage coverage, minimum coverage auto insurance doesn’t pay to repair your vehicle, whether you’re at fault or not at fault. Instead, you’ll need to add comprehensive and collision if you want your car covered.

• What does a full coverage car insurance policy include?
  

  A full coverage car insurance policy generally includes liability insurance and your state’s other minimum coverage requirements (if applicable), plus collision and comprehensive coverage. Collision insurance covers your vehicle’s repairs after an accident, whereas comprehensive coverage covers your vehicle’s repairs after a non-collision incident, such as theft, vandalism, storm damage or damage from striking an animal. However, the term “full coverage” can mean different things to different insurance carriers — some agents consider full coverage only when extra benefits like rental reimbursement and roadside assistance are also purchased. No state requires drivers to carry full coverage, but lenders often mandate this coverage level if you lease or finance your car.

• How much does car insurance cost?
  

  The cost of car insurance may vary greatly for every driver. The average cost of car insurance as of July 2025 is $2,677 per year for full coverage and $807 for minimum coverage, according to Bankrate’s study of quoted annual premiums. Your rate may be more or less than the average. That’s because the premiums you pay are calculated using a range of personal factors like your ZIP code, claims history, driving record, coverage options, deductibles and more.

• What happens if I drive without car insurance?
  

  The rate of uninsured motorists is rising, likely due to the drastic increase in car insurance rates many drivers have experienced over the past few years. However, driving uninsured can lead to even more financial problems. Along with state fines, drivers can have their vehicles impounded, have their license and vehicle registration suspended, and usually pay more for insurance when they restart their policy. On average, drivers with an insurance lapse pay $251 more per year for full coverage auto insurance.

• Does my minimum coverage car insurance cover me in another state?
  

  Yes, your car insurance policy will cover you anywhere you drive in the United States. Your car insurance policy must meet the coverage requirements in the state where the car is registered. However, there are no restrictions for driving in another state where the minimum requirements are higher; if you drive into a state that has higher minimum limits than yours, your minimum coverage policy will adjust up to that state’s limits. You may even have the same coverage if you drive across the border into Canada. However, you should confirm with your car insurance company or agent that you are covered in Canada prior to driving across the border. Most standard U.S. auto policies do not provide coverage in Mexico.