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Last updated: January 3, 2025
Is Minimum Coverage Car Insurance Enough?
Learn what’s mandatory and what’s good to have in a policy.
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Almost all states require drivers to purchase auto insurance. When you have auto insurance, your insurer will pay in the event of an accident or other loss, rather than financial responsibility falling to you. Insurance requirements vary by state, and it’s wise to purchase coverage beyond the mandated minimum. We’ll walk through different types of auto insurance coverage, and how much you should consider buying.
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Minimum Car Insurance Requirements, State by State
There are six basic types of auto insurance coverage.1 The four types of coverage listed below are required in some states:
- Bodily injury (BI): Bodily injury coverage pays for the treatment of injuries you cause to someone else. This coverage does not include you or your passengers.
- Property damage (PD): Property damage coverage pays for damage you cause to someone else’s property — usually their car, but property or objects that your car hits are also covered.
- Medical payments or personal injury protection (PIP): Medical payments/personal injury protection pays for the treatment of injuries you or your passengers sustain in an accident. Depending on your policy, it can include medical payments, lost wages, funeral costs, and more.
- Uninsured/underinsured motorist (UIM): Uninsured/underinsured motorist coverage reimburses you if someone without auto insurance (or with insufficient insurance) hits your car. This includes hit-and-run incidents and accidents where a vehicle hits you as a pedestrian.
Collision and comprehensive coverage are not required by any state, though it’s usually a good idea to purchase them if you can. If you lease or finance your vehicle, your lender will likely require you to carry these coverages.
- Collision: Collision coverage pays for damage to your car resulting from a collision with another car or an object, even if you’re at fault. It also covers damage sustained from potholes. Generally, collision coverage comes with a deductible.
- Comprehensive: Comprehensive coverage reimburses you for losses caused by something other than a collision, such as theft, vandalism, fire, and extreme weather. It also pays for broken windshields, though it does not cover regular wear and tear. Like collision, comprehensive coverage often comes with a deductible.
FYI
There are six main types of auto insurance coverage. Some states require bodily injury, property damage, medical payments coverage or personal injury protection, and uninsured/underinsured motorist coverage. No states require collision or comprehensive coverage, though your lender might.
Minimum auto insurance requirements vary by state. States often express minimum coverage as a series of numbers. For example, in California, as of January 1, 2025 the minimum liability coverage required by law is 30/60/15. This coverage pays up to $30,000 of bodily liability damages per person, $60,000 per accident, and $15,000 in property damage per accident.
Check out the chart below for the minimum per-person and per-accident coverage limits by state, broken down by type of insurance.
| State | Bodily injury per person | Bodily injury per accident | Property damage | UIM bodily injury | MedPay (at-fault) or PIP (no-fault) | Other required coverages |
|---|---|---|---|---|---|---|
| Alabama | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Alaska | $50,000 | $100,000 | $25,000 | Not required | Not required | None |
| Arizona | $25,000 | $50,000 | $15,000 | Not required | Not required | None |
| Arkansas | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| California | $30,000 | $60,000 | $15,000 | Not required | Not required | None |
| Colorado | $25,000 | $50,000 | $15,000 | Not required | Not required | None |
| Connecticut | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | None |
| Delaware | $25,000 | $50,000 | $10,000 | Not required | $15,000 PIP per person, $30,000 PIP per accident | None |
| District of Columbia | $25,000 | $50,000 | $10,000 | $25,000 per person, $50,000 per accident | Not required | $5,000 uninsured motorist property damage per accident, $200 deductible |
| Florida | Not required | Not required | $10,000 | Not required | $10,000 PIP | None |
| Georgia | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Hawaii | $20,000 | $40,000 | $10,000 | Not required | $10,000 PIP | None |
| Idaho | $25,000 | $50,000 | $15,000 | Not required | Not required | None |
| Illinois | $25,000 | $50,000 | $20,000 | $25,000 per person, $50,000 per accident | Not required | None |
| Indiana | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Iowa | $20,000 | $40,000 | $15,000 | Not required | Not required | None |
| Kansas | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | $4,500 for medical expenses
$9,000 a month for a year of disability or loss of income $25 a day for in-home services $2,000 for funeral, cremation, or burial expenses $4,500 for rehabilitation expenses | Survivors benefits, including up to $900 per month for a year for disability or loss of income and $25 per day for in-home services |
| Kentucky | $25,000 | $50,000 | $25,000 | Not required | $10,000 PIP (unless opted out) | None |
| Louisiana | $15,000 | $30,000 | $25,000 | Not required | Not required | None |
| Maine | $50,000 | $100,000 | $25,000 | $50,000 per person, $100,000 per accident | $2,000 MedPay | None |
| Maryland | $30,000 | $60,000 | $15,000 | $30,000 per person, $60,000 per accident | Not required | $15,000 uninsured/underinsured property damage coverage per accident |
| Massachusetts | $20,000 | $40,000 | $5,000 | $20,000 per person, $40,000 per accident | $8,000 PIP | None |
| Michigan | $50,000 | $100,000 | $1 million within MI
$10,000 outside MI | Not required | $250,000, or lower if enrolled in Medicare | None |
| Minnesota | $30,000 | $60,000 | $10,000 | $25,000 per person, $50,000 per accident | $40,000 | None |
| Mississippi | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Missouri | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | None |
| Montana | $25,000 | $50,000 | $20,000 | Not required | Not required | None |
| Nebraska | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | None |
| Nevada | $25,000 | $50,000 | $20,000 | Not required | Not required | None |
| New Hampshire | Not required | Not required | Not required | Not required | Not required | None |
| New Jersey | $25,000 |
$50,000 | $25,000 | $25,000 per person, $50,000 per accident | $15,000 PIP | $5,000 uninsured motorist property damage liability, with a $500 deductible |
| New Mexico | $25,000 | $50,000 | $10,000 | Not required | Not required | None |
| New York | $25,000 | $50,000 | $10,000 | $25,000 per person, $50,000 per accident | $50,000 PIP | $50,000 for death of 1 person in an accident, or $100,000 for death of 2 or more |
| North Carolina | $50,000 | $100,000 | $50,000 | $50,000 per person, $100,000 per accident | Not required | $50,000 uninsured motorist property damage coverage per accident |
| North Dakota | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | $30,000 PIP | None |
| Ohio | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Oklahoma | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Oregon | $25,000 | $50,000 | $20,000 | $25,000 per person, $50,000 per accident | $15,000 PIP | None |
| Pennsylvania | $15,000 | $30,000 | $5,000 | Not required | $5,000 first-party benefits coverage | Drivers must choose between
Limited Tort (lower premiums, restricted ability to sue for pain and suffering) Full Tort (higher premiums, no restrictions on ability to sue) |
| Rhode Island | $25,000 | $50,000 | $25,000 | Not required | Not required | Not required |
| South Carolina | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | $25,000 uninsured motorist property damage coverage |
| South Dakota | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | None |
| Tennessee | $25,000 | $50,000 | $25,000 | Not required | Not required | None |
| Texas | $30,000 | $60,000 | $25,000 | Not required | Not required | None |
| Utah | $30,000 | $65,000 | $25,000 | Not required | $3,000 PIP | None |
| Vermont | $25,000 | $50,000 | $10,000 | $50,000 per person, $100,000 per accident | Not required | $10,000 uninsured/underinsured motorist property damage coverage per accident |
| Virginia | $50,000 | $100,000 | $25,000 | $50,000 per person, $100,000 per accident | Not required. | None |
| Washington | $25,000 | $50,000 | $10,000 | Not required | Not required | None |
| West Virginia | $25,000 | $50,000 | $25,000 | $25,000 per person, $50,000 per accident | Not required | $25,000 uninsured motorist property damage coverage |
| Wisconsin | $25,000 | $50,000 | $10,000 | Not required | Not required | None |
| Wyoming | $25,000 | $50,000 | $20,000 | Not required | Not required | None |
Cost of Minimum Coverage
How much you pay for an auto insurance policy with minimum coverage depends on a number of factors, such as where you live, your age, your credit score, and whether you have a history of at-fault accidents or DUIs.
For drivers with good credit and a clean driving record, the average annual cost for minimum coverage nationally is $635 annually. If you have poor credit or a history of at-fault accidents or DUIs, the average annual minimum insurance costs range from about $850 to $1,200 or more. Additionally, since minimum coverage requirements vary by state, expect the cost of insurance to vary. Check out our roundup of the best cheap auto insurance options, and learn more about getting a car insurance quote.
Which States Don’t Require Auto Insurance?
Two states do not require drivers to purchase auto insurance: New Hampshire and Virginia.
In New Hampshire, drivers who opt not to purchase insurance must prove their ability to pay for damages following an at-fault car accident. The state does not specify an exact amount, but if you can’t prove your ability to pay, you must buy a 25/50/25 auto insurance policy2.
This policy pays $25,000 per person for bodily injury, up to $50,000 if two or more people are hurt, and up to $25,000 for property damage. To be exempt from purchasing auto insurance, expect to prove your ability to pay for damages somewhere in that range. Drivers who do not purchase auto insurance are still required to prove financial responsibility.
GOOD TO KNOW
Until recently, Virginia did not require auto insurance if drivers paid an uninsured motorist fee. However, as of July 1, 2024, auto insurance is required in Virginia, with limits increasing to 50/100/25 effective January 1, 2025.
Self-Insurance
Some states give individuals the option to pay for self-insurance, meaning you can put down a bond or deposit in lieu of traditional auto insurance. States have different requirements for self-insurance, and many only offer this option to drivers who own a fleet of vehicles (often 25 or more). Some drivers might choose this option to lower insurance costs. For example, if you own a fleet of vehicles, it’s often less expensive to pay for self-insurance than to insure each vehicle.
If you’re self-insured, you assume all financial responsibility for protecting your car and financial risk resulting from losses. This means that in the event of an accident, theft, or other liability, you (not the insurance company) will pay all the associated costs.
Should I Get Minimum or Full Auto Insurance Coverage?
Usually, even if you’ve paid your car off, it’s better to buy full coverage if you can afford it. Full-coverage car insurance means your state’s minimum, collision, and comprehensive coverage, and personal injury protection (PIP) coverage or medical payments coverage, if it’s not already mandated. Minimum coverage is often insufficient to cover the cost of medical bills and vehicle repair if you actually get into an accident.
When you have full coverage, your assets are protected in the event that you’re in a serious accident. If you’re in a serious accident and you have low insurance limits, the other party or parties can sue you for your savings, future earnings, and property to recover the difference. Consider that the average hospital stay after a car accident is over $60,000, which is more than some states’ minimum coverage limits. This doesn’t include lost wages and other expenses.3
Drivers who cannot afford policies with higher limits, or who have fewer assets, might opt for minimum coverage.
Do I Need Insurance to Register My Vehicle?
In most states, you need to provide proof of auto insurance in order to register your vehicle. There are a few exceptions. You don’t need auto insurance to register a vehicle in these states:
- Mississippi
- New Hampshire
- North Dakota
- Tennessee
- Washington
- Wisconsin4
However, if you plan on driving the vehicle after you register it, you need insurance in every state but New Hampshire. Keep in mind, New Hampshire still has financial responsibility laws for individuals who do not purchase insurance.
What Are the Consequences of Driving Without Insurance?
The penalties of driving without insurance vary by state and include fines, license suspension, jail time, mandatory SR-22 filing, community service, and vehicle impoundment. If you cause an accident while driving without insurance, you will be financially responsible for all damages.
You can find your state’s penalties for driving without insurance in the chart below.
| State | Fine for first offense | Additional penalties |
|---|---|---|
| Alabama | $500 | Suspended registration |
| Alaska | $500 | Suspended license |
| Arizona | $500 | License and registration suspension |
| Arkansas | $50 | Suspended registration |
| California | $100 | None |
| Colorado | $500 | Suspended license |
| Connecticut | $100 | License and registration suspension |
| Delaware | $1,500 | Suspended license |
| District of Columbia | $150 | Suspended license |
| Florida | $150 | Suspended license |
| Georgia | $85 | License and registration suspension |
| Hawaii | $500 | Suspended license |
| Idaho | $75 | None |
| Illinois | $500 | Suspended license |
| Indiana | $250 | Suspended license |
| Iowa | $250 | None |
| Kansas | $300 | License and registration suspension |
| Kentucky | $500 | Suspended registration |
| Louisiana | $500 | None |
| Maine | $100 | License and registration suspension |
| Maryland | $1,000 | None |
| Massachusetts | $500 | License and registration suspension |
| Michigan | $200 | Suspended license |
| Minnesota | $200 | License and registration suspension |
| Mississippi | $500 | Suspended license |
| Missouri | $20 | Suspended license |
| Montana | $250 | None |
| Nebraska | $100 | Suspended license |
| Nevada | $250 | Suspended license |
| New Hampshire | $125 | License and registration suspension |
| New Jersey | $300 | Licenses suspension |
| New Mexico | $300 | License and registration suspension |
| New York | $150 | License and registration suspension |
| North Carolina | $50 | Suspended license |
| North Dakota | $300 | Suspended license |
| Ohio | Varies | Suspended license |
| Oklahoma | $250 | Suspended license |
| Oregon | $260 | License and registration suspension |
| Pennsylvania | $300 | License and registration suspension |
| Rhode Island | $100 | License and registration suspension |
| South Carolina | $550 | Suspended license |
| South Dakota | $100 | Suspended license |
| Tennessee | $25 | Suspended license |
| Texas | $175 | None |
| Utah | $400 | Suspended license |
| Vermont | $250 | Suspended license |
| Virginia | $1,000 | Suspended license |
| Washington | $550 | None |
| West Virginia | $200 | Suspended license |
| Wisconsin | $500 | None |
| Wyoming | $250 | Suspended license |
Additionally, allowing your auto insurance to lapse will classify you as a high-risk driver, which will make buying auto insurance more expensive in the future.
Recap
Minimum auto insurance coverage requirements vary by state, but most require some form of liability insurance. It’s a good idea to purchase full auto insurance, rather than the bare minimum, to protect your assets in case of an accident.
Frequently Asked Questions
How much auto insurance coverage is recommended?
The amount of auto insurance coverage you need depends on your financial situation and risk tolerance. A common recommendation is to carry liability coverage of at least 100/300/100 ($100,000 per person, $300,000 per accident for bodily injury, and $100,000 for property damage). You may also want uninsured/underinsured motorist coverage, comprehensive and collision coverage, and higher limits if you have significant assets to protect.
What does a full coverage policy include?
A full coverage policy includes bodily injury and property damage liability with higher limits, uninsured/underinsured motorist coverage, personal injury protection (PIP) or medical payments coverage (if not already required), and comprehensive and collision coverage. You might opt for additional coverages, like rental reimbursement, gap insurance or new car replacement, depending on your needs.
How much does auto insurance cost?
The cost of auto insurance depends on your state and the amount of coverage you buy. The average national cost of full coverage auto insurance is currently $2,399 per year, or $200 per month. The average price of minimum coverage auto insurance is $635 per year, or $52 per month.
Do I have to notify the DMV if I cancel my auto insurance?
Yes, you must notify the DMV if you cancel your auto insurance. If you don’t, the DMV may consider it a lapse in coverage and classify you as a high-risk driver. If you’re switching auto insurance providers, your new provider will usually notify the DMV for you. If you sold your car, you will have to provide paperwork to the DMV verifying that you no longer own a vehicle.
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
What is covered by a basic auto insurance policy? III. (2022).
https://www.iii.org/article/what-covered-basic-auto-insurance-policyYour Guide to Understanding Auto Insurance in the Granite State. State of New Hampshire Insurance Department. https://www.nh.gov/insurance/consumers/documents/nh_auto_guide.pdf
What’s the Average Cost of Hospital Bills Following a Car Accident? Brown & Crouppen. (2024, December 9).
https://www.brownandcrouppen.com/blog/what-is-the-average-cost-of-hospital-bills-following-a-car-accident/Can You Register a Car Without Insurance? Kelley Blue Book. (2022, October 12).
https://www.kbb.com/car-advice/insurance/register-car-without-insurance/
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