Is it better to get minimum coverage or full coverage?

They aren’t actually mutually exclusive. Minimum coverage refers to a state’s required minimum limits, and it’s typically a liability-only policy (although other coverage types may be required). Full coverage just means that you’ve added comprehensive and collision, which add protection for damage to your vehicle and are required if you have a loan or lease. So you could buy state minimum liability limits but also have “full coverage” by adding comprehensive and collision. Most insurance professionals advise that you buy higher liability limits for more financial protection, but if your budget is exceptionally tight, minimum coverage may be your best option.

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.

How much does car insurance cost?

The cost of car insurance is different for every driver. The average cost of car insurance in the U.S. is $1,771 per year for full coverage, according to Bankrate’s study of quoted annual premiums for 2022, but 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, state, claims history, driving record, coverage options and deductibles.

Is my new car covered under minimum coverage car insurance?

It depends. If you have a current car insurance policy, you likely have some coverage that transfers to newly-acquired vehicles, but talk with your insurance agent or a company representative about the specifics. When you purchase a new car, you should add it to your car insurance policy as soon as you can so that you’re properly insured. If you purchase the car without a loan or lease, you have the option to get minimum coverage or full coverage insurance. However, if you lease or finance the vehicle, your lender will most likely require you to get a full coverage policy and possibly even higher liability limits.

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.

Minimum Car Insurance Coverage Requirements in Each State

woman standing next to her car and checking her bike tire

8 minute read Published September 20, 2022

Written by

Elizabeth Rivelli

Edited by

Mariah Posey

Reviewed by

Mark Friedlander

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To help provide greater financial protection to drivers on the road, each state in the U.S. has minimum car insurance coverage requirements that you must meet if you want to legally get behind the wheel. What that means is that if you live in the United States and own a vehicle, then you must meet or exceed your state’s requirements for car insurance.

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When it comes to coverage types, a minimum car insurance policy typically includes bodily injury liability and property damage liability coverage, and it provides the minimum amount of coverage you must have in that state. However, certain states also require additional coverage types. Minimum coverage car insurance is typically cheaper than a full coverage policy, which provides extra protection for your vehicle, so it can be a way to save on insurance premiums. However, it is usually only available for vehicles without a loan or a lease.

What kind of car insurance am I required to have?

Nearly all states have some form of car insurance requirement. Many states allow drivers to satisfy minimum requirements in several ways, including through a bond, deposits, evidence of self-insurance or by carrying an auto insurance policy. New Hampshire does not have a car insurance requirement unless drivers receive certain driving infractions that require them to file an SR-22 financial responsibility form. Plus, there are several states, like Michigan, Minnesota and New Jersey, where drivers are required to carry liability and personal injury protection coverage.

Below are the coverage types that are often required with minimum car insurance:

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 pays toward property damage that you cause to others. For example, if you hit another driver, your property damage liability insurance would help pay for their vehicle’s repairs.
Uninsured/Underinsured motorist coverage (UM/UIM): Uninsured and underinsured motorist coverage offer financial protection in the event that you get into an accident with a driver who is uninsured or does not have enough coverage to pay for your losses.
Personal injury protection (PIP): Personal injury protection is a requirement in states that have no-fault laws. If you get into an accident, PIP can pay for your medical bills, lost wages, rehab costs and related expenses, regardless of who caused the accident. This coverage can also be purchased in some at-fault states.
Medical payments coverage (MedPay): Medical payments coverage helps pay your medical expenses following an accident and is not as robust of coverage as PIP can be. It is available in non-PIP states and is considered optional coverage in most states. However, a few states do require drivers to carry medical payments coverage.

The minimum amount of coverage allowed per person and per accident is different depending on your location. To find the exact minimum coverage requirements in your state, you can visit your state’s department of insurance website or contact your auto insurer.

Minimum car insurance requirements in each state

Before deciding to carry minimum coverage car insurance to satisfy your state’s insurance requirements, it is a good idea to review the minimum requirements in your state. Also, remember that you can always purchase more coverage than what is required if you want additional financial protection. It is a good idea to consider getting quotes for multiple coverage levels before choosing the least amount of car insurance coverage available in your state to save on auto insurance premiums.

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

State	Bodily injury liability and property damage liability	UM/UIM, PIP and MedPay
Alabama	25/50/25	None
Alaska	50/100/25	None
Arizona	25/50/15	None
Arkansas	25/50/25	None
California	15/30/5	None
Colorado	25/50/15	None
Connecticut	25/50/25	25/50 UM/UIM
Delaware	25/50/10	15/30 PIP
Florida	$10,000 PDL*	$10,000 PIP
Georgia	25/50/25	None
Hawaii	20/40/10	$10,000 PIP
Idaho	25/50/15	None
Illinois	25/50/20	25/50 UM
Indiana	25/50/25	None
Iowa	20/40/15	None
Kansas	25/50/25	25/50 UM/UIM $4,500 PIP
Kentucky	25/50/25	None
Louisiana	15/30/25	None
Maine	50/100/25	50/100 UM/UIM $2,000 MedPay
Maryland	30/60/15	30/60/15 UM
Massachusetts	20/40/5	20/40 UM $8,000 PIP
Michigan	50/100/10	Six PIP options: minimum $50,000 for insureds on Medicaid
Minnesota	30/60/10	25/50 UM/UIM $40,000 PIP
Mississippi	25/50/25	None
Missouri	25/50/25	25/50 UM/UIM
Montana	25/50/20	None
Nebraska	25/50/25	25/50 UM/UIM
Nevada	25/50/20	None
New Hampshire**	25/50/25	25/50 UM $1,000 MedPay
New Jersey	15/30/5***	15/30 UM/UIM $15,000 PIP
New Mexico	25/50/10	None
New York	25/50/10	25/50 UM $50,000 PIP
North Carolina	30/60/25	30/60/25 UM 30/60 UIM
North Dakota	25/50/25	25/50 UM/UIM $30,000 PIP
Ohio	25/50/25	None
Oklahoma	25/50/25	None
Oregon	25/50/20	25/50 UM/UIM $15,000 PIP
Pennsylvania	15/30/5	$5,000 PIP
Rhode Island	25/50/25	None
South Carolina	25/50/25	25/50/25 UM
South Dakota	25/50/25	25/50 UM/UIM
Tennessee	25/50/15	None
Texas	30/60/25	None
Utah	25/65/15	$3,000 PIP
Vermont	25/50/10	50/100/10 UM
Virginia	30/60/20	None
Washington	25/50/10	None
Washington, D.C.	25/50/10	25/50/5 UM
West Virginia	25/50/25	25/50/25 UM
Wisconsin	25/50/10	25/50 UM
Wyoming	25/50/20	None

*Florida only requires PDL and PIP, but you have to prove you have the financial means to pay for damages before you can skip out on BI.

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

***New Jersey limits are based on the “standard policy” minimum coverage requirements for current coverage. New Jersey’s minimum limits are increasing in January 2023.

States without car insurance requirements

Traditional car insurance is not mandatory in all states. Depending on where you live, there may be alternative options to put down a deposit or post a bond with your state’s DMV, which serves as proof of financial responsibility. If you were to get into an accident, that money would be given to the other driver to compensate them for their losses.

Here are a few of the states that require either a standard car insurance policy or a financial filing:

California: Option to put down a $35,000 deposit
Florida: Drivers can decline liability insurance by proving a net worth of at least $40,000
Montana: Option to post a bond or a $55,000 deposit of cash or securities

However, keep in mind that forgoing traditional car insurance is usually a much more expensive option in the long run or if you are involved in an accident. The most flexible states for car insurance alternatives are New Hampshire and Virginia.

In New Hampshire, drivers are not required to carry auto insurance, except in cases where they must have an SR-22. In Virginia, drivers can forgo car insurance and pay a $500 uninsured motorist fee, making it the second cheapest state for alternative car insurance.

Keep in mind, though, that buying an insurance policy is still usually the cheapest way to satisfy a state’s financial responsibility law. For example, in Virginia, a minimum coverage policy will cost you an average of $483 per year; that’s $17 less than the fee you’d have to pay to drive without coverage. Most insurance professionals recommend higher limits for greater financial protection, and you may need full coverage depending on your situation. 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 — can save you from financial devastation should the worst happen.

Frequently asked questions

- They aren’t actually mutually exclusive. Minimum coverage refers to a state’s required minimum limits, and it’s typically a liability-only policy (although other coverage types may be required). Full coverage just means that you’ve added comprehensive and collision, which add protection for damage to your vehicle and are required if you have a loan or lease. So you could buy state minimum liability limits but also have “full coverage” by adding comprehensive and collision. Most insurance professionals advise that you buy higher liability limits for more financial protection, but if your budget is exceptionally tight, minimum coverage may be your best option.
- 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.
- The cost of car insurance is different for every driver. The average cost of car insurance in the U.S. is $1,771 per year for full coverage, according to Bankrate’s study of quoted annual premiums for 2022, but 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, state, claims history, driving record, coverage options and deductibles.
- It depends. If you have a current car insurance policy, you likely have some coverage that transfers to newly-acquired vehicles, but talk with your insurance agent or a company representative about the specifics. When you purchase a new car, you should add it to your car insurance policy as soon as you can so that you’re properly insured. If you purchase the car without a loan or lease, you have the option to get minimum coverage or full coverage insurance. However, if you lease or finance the vehicle, your lender will most likely require you to get a full coverage policy and possibly even higher liability limits.
- 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.