Do You Know Your State's Minimum Auto Insurance State Requirements?

By: Staff Writer June 30, 2012
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Every state (with the exception of New Hampshire) requires car insurance coverage. This is not an option; it's a mandatory law. To comply, you must meet your state's minimum coverage requirements. Your policy must carry two major parts: liability insurance for bodily injury and liability insurance for property damage.

NOTE: Some states may also require additional auto insurance coverage. Drivers in Wisconsin, for example, must also carry uninsured motorist coverage, while  Minnesota drivers must also buy personal injury protection (PIP), or what is sometimes referred to as "No Fault" coverage.

How Much Liability Insurance Does My State Require?

The amount of liability insurance - bodily and property - you must carry depends on your state:

  • Alabama: 25/50/25
  • Alaska: 50/100/25
  • Arizona: 15/30/10
  • Arkansas: 25/50/25
  • California: 15/30/5
  • Colorado: 25/50/15
  • Connecticut: 20/40/10
  • Delaware: 15/30/10
  • District of Columbia: 25/50/10
  • Florida: 10/20/10
  • Georgia: 25/50/25
  • Hawaii: 20/40/10
  • Idaho: 25/50/15
  • Illinois: 20/40/15
  • Indiana: 25/50/10
  • Iowa: 20/40/15
  • Kansas: 25/50/10
  • Kentucky: 25/50/10
  • Louisiana: 15/30/25
  • Maine: 50/100/25
  • Maryland: 30/60/15
  • Massachusetts: 20/40/5
  • Michigan: 20/40/10
  • Minnesota: 30/60/10
  • Mississippi: 25/50/25
  • Missouri: 25/50/10
  • Montana: 25/50/10
  • Nebraska: 25/50/25
  • Nevada: 15/30/10
  • New Hampshire: 25/50/25
  • New Jersey: 15/30/5
  • New Mexico: 25/50/10
  • New York: 25/50/10
  • North Carolina: 30/60/25
  • North Dakota: 25/50/25
  • Ohio: 12.5/25/7.5
  • Oklahoma: 25/50/25
  • Oregon: 25/50/20
  • Pennsylvania: 15/30/5
  • Rhode Island: 25/50/25
  • South Carolina: 25/50/25
  • South Dakota: 25/50/25
  • Tennessee: 25/50/15
  • Texas: 30/60/25
  • Utah: 25/65/15
  • Vermont: 25/50/10
  • Virginia: 25/50/20
  • Washington: 25/50/10
  • West Virginia: 20/40/10
  • Wisconsin: 50/100/15
  • Wyoming: 25/50/20

These three number abbreviations are standard with the auto insurance industry. The numbers represent the maximum amount that an insurance provider will pay for the three liability coverage categories.

Using South Carolina's insurance requirements of 25/50/25 as an example, here's how to interpret the numbers:

  • The first number, 25, represents $25,000 for injury or death of one person.
  • The second number, 50, represents $50,000 for injury or death of two or more people.
  • The third number, 25, represents $25,000 for property damage.

Keep in mind that you are not limited or restricted to your state's insurance minimum amounts. Depending on your needs, you are free, and even encouraged, to carry higher amounts of auto insurance coverage. You also have the option for additional coverage plans like collision and comprehensive.

Penalties for Not Carrying Auto Insurance

Noncompliance comes with heavy penalties. Depending on state, you could face fines, have your drivers license suspended or revoked and/or be denied vehicle registration.

And don't think you can slip by for a month or even a week of letting your coverage drop. Most car insurance companies are required by law to immediately notify the state whenever a coverage plan is dropped. The Department of Motor Vehicles (DMV) then sends you a notice, requesting proof of auto insurance by a specified date. Failure to comply is interpreted as an admission of guilt, resulting in fines and penalties.

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