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The state minimum car insurance is the minimum amount of car insurance you must carry in your state to legally drive a vehicle. It ensures that you can pay for others' injuries and damages if you cause a car accident.
Most states mandate drivers to carry liability insurance of a minimum amount. Others require more coverage like uninsured motorist (UM) or underinsured motorist (UIM) and personal injury protection (PIP) insurance. Driving without adequate coverage can result in financial repercussions such as fines, license suspensions, vehicle impoundment, and even jail time
Below is a list of state minimum requirements from the Insurance Information Institute (III). Coverage minimums are represented by numbers and slashes. For example, a 50/100/50 policy would cover up to $50,000 of injury protection for each person involved in an accident, up to $100,000 worth of injuries per incident, and up to $50,000 of property damages per incident.
State
Required Liability Insurance
Minimum Liability
Check your state's requirements by visiting your state's Department of Motor Vehicles (DMV) or insurance department website. Alternatively, your insurance company can help you customize your policy so it's in compliance with your state's legal coverage amount.
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Liability coverage compensates injured parties if you're at fault in an accident. There are two types of liability coverage: bodily injury and property damage liability. Bodily injury liability covers the affected party's medical expenses, lost wages, and funeral costs. Property damage covers their vehicle and property damages.
PIP covers you and your passenger's medical expenses and lost wages after an accident, regardless of fault. If you live in a no-fault state, you may be required to carry this coverage. These states include:
Kentucky, New Jersey, and Pennsylvania are optional no-fault states. If you live in one of those states, you can choose to carry a no-fault or traditional auto policy.
UM and UIM insurance kicks in if you get into an accident with a driver who has little to no insurance. It also applies in hit and run cases. This insurance protects you from paying lofty vehicle repair and medical expenses if the other driver doesn't have adequate coverage.
When comparing policies you don't just want to pick the cheapest policy. You want to ensure it meets your needs, requirements, and financial situation. You'll want to compare factors such as:
These are the top providers for minimum car insurance based on our round-up on the best car insurance companies.
Company
Best For
AM Best Rating
Key Features
Offers a highly-rated claims experience and additional services like glass repair with no deductible and new car replacement.
Known for competitive rates and a wide range of discounts, making it a good option for budget-conscious drivers.
Provides specialized services and significant discounts for military members and their families
Offers several discounts tailored for young and teen drivers, helping to manage the typically high cost of insuring this demographic
Has an extensive list of discounts, making it an attractive option for a broad range of drivers seeking savings.
Provides unique benefits for teachers, such as zero deductible for school-related incidents and coverage for personal teaching items.
Stands out for its accident forgiveness options, helping drivers avoid premium increases after an accident.
The table below depicts the average cost of minimum coverage in various states, according to Insurify. The most expensive state for liability-only insurance is Connecticut state at $208 per month and the cheapest state is North Carolina state at $56 per month.
State
Average Cost: Liability Only
Having the minimum coverage provides financial protection if you get into a car accident and you're at fault. On top of that, it's more affordable than a full-coverage policy. But it's a good idea to carry more than the minimum coverage, especially if you drive regularly. Minimum coverage is also beneficial because it ensures you adhering to state laws and avoid the repercussions of driving uninsured.
The main drawback of minimum coverage is that it doesn't cover your vehicle or medical expenses. It also has coverage limits. So if you get into a severe accident, your expenses could easily exceed it. At that point, you'll be on the hook for any remaining costs.
Another drawback is that it's another cost to budget for. Liability coverage is generally affordable, but it can get expensive, particularly if you are a high-risk driver and need to carry specialized insurance.
These are several tips on finding best affordable car insurance:
These are some popular discounts that insurers offer to help you save on your policy:
Online comparison tools generate quotes side-by-side from multiple insurance companies in minutes. These intuitive tools save time and money when searching for a new policy.
Some pieces of information you'll want to have ready when you purchase an insurance policy include your:
Insurance companies calculate rates differently, so you'll want to compare car insurance quotes from at least three providers to find the best deal on your policy. Use an insurance broker or online comparison calculator to get quotes from multiple companies based on your individual situation and needs.
After completing an application, go back to review your policy's details, paying attention to coverages, limits, deductibles, and exclusions. You can always adjust your policy later, but you want to make sure you're completely covered before hitting the road. If you have any questions, don't hesitate to speak to your insurance agent.
What happens if I don't have the state minimum car insurance? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
If you drive without the state minimum car insurance, you may face serious penalties such as fines, license suspension, and even vehicle impoundment. Additionally, you may be held financially liable for any damages or injuries resulting from an accident.
Can I drive in other states with just my state's minimum insurance? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
You can drive in other states with your state's minimum insurance, but it's essential to understand that coverage requirements vary. If you move to another state, you'll need to meet that state's minimum requirements.
Is state minimum insurance enough to protect me financially? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
State minimum insurance may not provide adequate financial protection in the event of a serious accident. For increased protection, consider a full-coverage policy that includes collision and comprehensive insurance.
How do I know if my policy meets my state's requirements? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
You can check your policy details against your state's DMV website or insurance department website, or consult with your insurance provider to ensure your policy meets the required minimum coverage limits.
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