State-by-State Minimum Car
Insurance Requirements

Every state has its own rules when it comes to car insurance. These rules are there to protect everyone on the road – from you to other drivers, pedestrians, and property owners. By requiring drivers to have a minimum level of insurance, states make sure that if an accident happens, there’s financial protection in place.

While every state has different rules, most require at least two types of insurance: bodily injury liability (to cover injuries to others) and property damage liability (to cover damage to others’ property). Some states require extra coverage, like personal injury protection (PIP) or uninsured motorist coverage.

At Acceptance Insurance, we’re here to help you navigate car insurance requirements by state and find the right coverage for your needs.

It’s essential to know what your state requires to avoid fines, penalties, or worse, being caught driving without coverage. Let’s take a closer look at the state-by-state car insurance minimum requirements and how they differ across the country.

The cost of minimum liability insurance can vary depending on a few different factors, like where you live, your driving history, and the type of car you drive. The national annual average is roughly $650. Everybody has a different quote, and the range could be anywhere from $400 to $1,000 per year for basic coverage.

Minimum liability insurance typically includes coverage for bodily injury and property damage, which is required by law in most states. But keep in mind that the cost can change depending on your state’s laws—every state has its own rules when it comes to insurance. Other things like your age, driving record, and even credit score can also affect how much you’ll pay.

While going with the minimum coverage might save you some money at first, it’s a good idea to think about whether it’s really enough for your needs. The liability-only option will help protect you against legal trouble and claims by other people when you cause an accident, but it will not help you repair your own vehicle or pay for any medical costs if you are injured.

When it comes to car insurance, the terms at-fault and no-fault refer to how the costs of an accident are handled.

• At-Fault States: In these states, if you cause an accident, you’re responsible for covering the costs, like the other driver’s medical bills and property damage. Your insurance will help pay for the damages if you’re at fault.
• No-Fault States: These states are a bit different. In a no-fault state, each driver’s own insurance covers their medical expenses and other costs, no matter who caused the accident. This system is designed to speed up claims and reduce the need for lawsuits. But it also means your insurance premiums might be a bit higher to cover those extra costs.

Car insurance isn’t just about protecting your vehicle—it’s about complying with the laws designed to keep drivers, passengers, and pedestrians safe. State laws play a pivotal role in shaping car insurance requirements, determining everything from minimum liability coverage to optional add-ons. These regulations vary widely across the United States, reflecting each state’s unique approach to managing risk and responsibility on the road. Understanding these laws is crucial for drivers, whether you’re purchasing your first policy, moving to a new state, or simply seeking to ensure you’re fully covered.  Knowing whether your state is at-fault or no-fault is key when choosing your coverage – especially when it comes to the type of insurance you’ll need.

Our experienced Acceptance Insurance agents are here to guide you through the process, ensuring you understand your options and secure the coverage that fits your needs.

Now, let’s get into the details. The minimum liability requirements vary by state, so it’s important to know exactly what’s required in your area. Here’s a snapshot of what you might find:

• Bodily Injury Liability (BI): This covers injuries you cause to others in an accident. Each state has a minimum amount that you need to have.
• Property Damage Liability (PD): This covers damage you cause to someone else’s property, like their car or fence.
• Personal Injury Protection (PIP): Required in no-fault states, this covers your medical expenses and lost wages, regardless of who caused the accident.
• Uninsured/Underinsured Motorist (UM/UIM): This covers you if the person who hits you doesn’t have enough insurance (or any at all).

Different states set different minimums, so while one state might require $15,000 in bodily injury liability, another might require $50,000. Here’s a quick look at how some states compare:

*California: New limits beginning 1/1/25

**Florida and Pennsylvania – No-fault states

The minimum car insurance requirements are there to meet the legal needs of most drivers, but they might not be enough for everyone. Let’s look at the pros and cons.

Pros of Minimum Auto Coverage

• Lower Monthly Premiums: The biggest benefit of going with minimum coverage is that it’s cheaper. If you’re trying to save money on insurance, it’s the most affordable option.
• Meets Car Insurance Requirements by State: As long as you meet your state’s minimums, you’re legally covered. You won’t have to worry about fines or losing your driver’s license.

Cons of Minimum Car Insurance Coverage

• Not Enough Coverage for Big Accidents: The downside of minimum coverage is that it might not be enough to cover everything in the event of a serious accident. If you cause an accident with high medical costs or extensive property damage, you might end up paying out of pocket or being sued.
• Out-of-Pocket Expenses: If your property damage coverage is too low, you could face hefty repair costs if the other driver’s vehicle is damaged beyond the minimum limits.
• Your Own Damages and Injuries: Minimum liability will never kick in to help pay for your own damages and injuries in an accident you cause. That will all be out of pocket expenses.

For some people, choosing more coverage might make sense, especially if you want peace of mind knowing that you’re fully protected in the event of an accident. More coverage can help you avoid having to pay out-of-pocket for damages that go beyond the minimum.

While the state sets the minimum liability requirements for car insurance, there are still ways you can potentially lower your premium without sacrificing the coverage you need. Here are a few tips to help you reduce your costs:

• Take Advantage of Discounts: Look for insurance discounts like safe driver, multi-policy, or low-mileage discounts.
• Shop Around: Comparing insurance quotes from different insurers can help you find the best price.
• Maintain a Clean Driving Record: Avoiding accidents and traffic violations can help keep your premiums lower.
• Bundle Policies: If you have other insurance, such as home or renters insurance, bundling can save you money.