Each state has a minimum amount of car insurance you can buy to satisfy financial responsibility laws. Liability insurance is the primary requirement, covering damage and injuries you cause others in an auto accident.
Common liability limits are $25,000 per person, $50,000 per accident for bodily injury and $25,000 for physical damage. But your state’s requirements may be different. To determine how much car insurance you need, understand what your state requires and assess your personal needs.
How Much Car Insurance Do I Need?
Beyond what is required by state car insurance laws and your lender, you need enough car insurance to pay for injuries, property damage and lawsuits that may arise from an accident if you don’t have enough savings to pay for them otherwise. And even if you do have the savings, can you afford to spend it all on a car accident? If you’re like most people, the answer to that question is no.
The National Association of Insurance Commissioners recommends buying enough car insurance to:
- Comply with state laws.
- Satisfy your lender (if you have a loan or lease).
- Protect your assets in case of a lawsuit against you over a car accident.
What Car Insurance Coverage Do I Need?
Most states require car owners to buy liability car insurance, but coverage requirements vary by state. Depending on where you live, you may need to buy additional coverage types—such as uninsured motorist coverage, personal injury protection or medical payments coverage. Lenders typically mandate collision and comprehensive insurance if your car is leased or financed.
Here are common car insurance coverage options and recommended limits for each. These are general recommendations, so it’s important to evaluate your personal financial situation to determine the coverage that best suits your needs.
| Coverage | Adequate | Good | Even better |
|---|---|---|---|
| State minimum | $100,000 per person for bodily injury liability $300,000 per accident for bodily injury liability $100,000 for property damage | $250,000 per person for bodily injury liability $500,000 per accident for bodily injury liability $250,000 for property damage | |
| State minimum | $100,000 per person for bodily injury liability $300,000 per accident for bodily injury liability | $250,000 per person for bodily injury liability $500,000 per accident for bodily injury liability | |
| State minimum | $40,000 | State maximum | |
| Not required | Recommended | Recommended | |
| Not required | Recommended | Recommended |
Car Insurance Requirements by State
Every state has a financial responsibility law for vehicles, which most drivers satisfy by buying car insurance.
The minimum amount of auto insurance you need to buy varies by state. But no matter where you live, liability car insurance—which covers damage and injuries you cause others in an accident—is the main required coverage. The minimum car insurance required by your state is important to know, but this amount may not be adequate for your needs.
| State | Bodily injury liability (per person/per accident) | Property damage liability (per accident) | Other car insurance requirments |
|---|---|---|---|
| $25,000 per person | $25,000 | None | |
| $50,000 per person | $25,000 | None | |
| $25,000 per person | $15,000 | None | |
| $25,000 per person | $25,000 | None | |
| $15,000 per person | $5,000 | None | |
| $25,000 per person | $15,000 | None | |
| $25,000 per person | $25,000 | Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $10,000 | Personal injury protection: | |
| $10,000 per person | $10,000 | Personal injury protection: | |
| $25,000 per person | $25,000 | None | |
| $20,000 per person | $10,000 | Personal injury protection: | |
| $25,000 per person | $15,000 | None | |
| $25,000 per person | $20,000 | Uninsured motorist bodily injury: | |
| $25,000 per person | $25,000 | None | |
| $25,000 per person | $15,000 | None | |
| $25,000 per person | $25,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $25,000 | Personal injury protection: | |
| $15,000 per person | $25,000 | None | |
| $50,000 per person | $25,000 | Medical payments: Uninsured/underinsured motorist bodily injury: | |
| $30,000 per person | $15,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: Uninsured motorist property damage: | |
| $20,000 per person | $5,000 | Personal injury protection: Uninsured motorist bodily injury: | |
| $50,000 per person | $10,000 | Personal injury protection: Property protection Insurance: | |
| $30,000 per person | $10,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $25,000 | None | |
| $25,000 per person | $25,000 | Uninsured motorist bodily injury: | |
| $25,000 per person | $20,000 | None | |
| $25,000 per person | $25,000 | Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $20,000 | None | |
| $25,000 per person | $25,000 | Medical payments: Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $25,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: Uninsured motorist property damage: | |
| $25,000 per person | $10,000 | None | |
| $25,000 per person | $10,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: | |
| $30,000 per person | $25,000 | Uninsured motorist bodily injury: Uninsured motorist property damage: | |
| $25,000 per person | $25,000 | Personal injury protection: Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $25,000 | None | |
| $25,000 per person | $25,000 | None | |
| $25,000 per person | $20,000 | Personal injury protection: Uninsured motorist bodily injury: | |
| $15,000 per person | $5,000 | Medical benefits: | |
| $25,000 per person | $25,000 | None | |
| $25,000 per person | $25,000 | Uninsured motorist bodily injury: Uninsured motorist property damage: | |
| $25,000 per person | $25,000 | Uninsured/underinsured motorist bodily injury: | |
| $25,000 per person | $25,000 | None | |
| $30,000 per person | $25,000 | None | |
| $25,000 per person | $15,000 | Personal injury protection: | |
| $25,000 per person | $10,000 | Uninsured/underinsured motorist bodily injury: Uninsured motorist property damage: | |
| $30,000 per person | $20,000 | Uninsured/underinsured motorist bodily injury: Uninsured motorist property damage: | |
| $25,000 per person | $10,000 | None | |
| Washington, D.C. | $25,000 per person | $25,000 | Uninsured motorist bodily injury: Uninsured motorist property damage: |
| $25,000 per person | $25,000 | Uninsured motorist bodily injury: Uninsured motorist property damage: | |
| $25,000 per person | $10,000 | Uninsured motorist bodily injury: | |
| $25,000 per person | $20,000 | None |
Which States Don’t Require Car Insurance?
While requiring car insurance is the norm, two states are unique in the choices you have.
- New Hampshire does not require car insurance, but if you’re in an at-fault accident you must prove you have adequate funds to fulfill the state’s financial responsibility law. This could include buying car insurance.
- South Carolina law allows you to legally drive without auto insurance if you meet certain qualifications and pay $600 to register an uninsured vehicle.
Choosing to go without car insurance in either New Hampshire or South Carolina leaves you personally responsible for paying for damage to property or injuries to people if you cause an accident.
How To Estimate Car Insurance Costs
Penny Gusner
Insurance Senior Writer
Michelle Megna
Insurance Lead Editor
Jason Metz
Insurance Lead Editor
Compare Quotes With Multiple Companies
I recommend comparing quotes with a variety of insurers so you can get a reliable estimate of what car insurance will cost for your needs. Make sure you compare the same coverage options and limits so you’re comparing apples to apples and can find the best price.
Insurance Senior Writer
Provide Accurate Information
Factors like your age, type of vehicle, coverage amount, deductibles, driving history and location will be used to determine your cost estimate. I want to stress the importance of giving accurate information to get an accurate quote. If you provide faulty information and buy a policy, you could have your policy canceled or your rates recalculated to a high rate.
Insurance Lead Editor
Use a Car Insurance Calculator
If you don’t have time now to fill out quote forms with various insurers, I recommend trying our car insurance calculator. It provides an estimate of costs based on your state and driving record, which can help you set your budgeting expectations.
Insurance Lead Editor
Our car insurance calculator can give you an estimate of costs based on your state and driving record.
Is Minimum Car Insurance Coverage Enough?
Minimum car insurance coverage is better than no coverage, but it can be woefully inadequate for many drivers. Minimum coverage typically has a fairly low limit, leaving you open to a financial crisis if you don’t have enough insurance for an accident you cause. Also, state minimum auto insurance won’t provide any coverage for your own car’s repair bills after an accident. If you want better coverage, buy more than the minimum requirements.
With a basic knowledge of the main types of car insurance, you can build a policy that fits your specific insurance needs.
Types of Auto Insurance Coverage
Liability Insurance
Liability car insurance pays for injuries and property damage suffered by others if you’re at fault for an accident. It also pays your legal defense and any settlements or judgments if you’re sued because of an accident.
Liability car insurance includes two different types of coverage packaged together:
- Bodily injury liability pays for injuries to other drivers, their passengers and any hurt pedestrians if you’re at fault for an accident.
- Property damage liability pays for damage to another individual’s property, including their vehicle, if you cause an accident.
Here are a few examples of what liability insurance covers:
- You rear end another car at a traffic light and cause damage.
- You crash into a neighbor’s fence.
- You are responsible for a car accident and the other driver is injured.
How much liability insurance should I buy?
A good rule of thumb is to buy enough liability insurance to cover what you could lose in a lawsuit against you if you cause a car accident. In California, a 250/500/100 policy would be a much better choice than the state minimum of 15/30/5.
For extra liability insurance above your base auto and home insurance policies, consider getting an umbrella insurance policy. You can buy an additional $1 million (or more) in liability coverage through an umbrella policy for a relatively inexpensive amount.
Uninsured Motorist Insurance
Uninsured motorist (UM) and underinsured motorist (UIM) insurance pay for your medical bills if someone crashes into you and they do not have liability insurance or not enough. Uninsured motorist coverage is required in some states and optional in others. In states where UM is optional, you can typically reject the coverage in writing.
If UM is available in your state, this is good coverage to have. UM coverage pays for:
- Funeral expenses.
- Lost wages due to injuries suffered in the car accident.
- Medical expenses for you and your passengers.
- Pain and suffering of you or your passengers.
- Your vehicle damage (depending on your state), if you have purchased uninsured motorist property damage coverage.
Uninsured motorist insurance does not pay anything to the uninsured driver who caused the accident. They’re on their own.
How Much Uninsured Motorist Coverage Should I Buy?
You’ll typically need to purchase UM in amounts that match your liability insurance. For example, if you have liability coverage of 250/500/100, you’ll need to buy the same amount of UM coverage.
Collision and Comprehensive Insurance
Collision insurance pays to repair or replace your vehicle after a collision with another car or if you hit other objects, like a tree, fence or guardrail. Comprehensive insurance pays for repairing or replacing your car if it’s stolen or damaged by a range of problems, such as falling objects, fire, floods, hail, vandalism or striking an animal.
Collision and comprehensive insurance are usually sold together. You’ll want this optional coverage as part of your policy if you want insurance for damage to your own vehicle and theft of your vehicle. And, if you have a car loan or lease, your lender or leasing company will likely require you to buy both.
How Much Collision and Comprehensive Insurance Should I Buy?
You don’t buy a certain amount of collision and comprehensive because the most this coverage will pay out is the value of your totaled vehicle. If you want to cut costs, select a higher deductible amount, which is the amount deducted from a claims check. For example, a $1,000 deductible will result in slightly cheaper premiums than a $500 deductible.
Personal Injury Protection
Personal injury protection (PIP) covers medical bills for you and your passengers no matter who caused the car accident. It also pays for other expenses like lost wages, funeral expenses and replacement services you can’t do because of injuries, like cleaning services or child care.
Some states require PIP as part of their “no-fault auto insurance” laws, while in other states, you can buy PIP as an optional coverage type, and some states don’t have it as an option.
How Much PIP Insurance Should I Buy?
PIP rules vary by state and it’s not sold in all states. For example, for Florida car insurance, PIP options range from basic to extended:
- Basic Florida PIP covers 80% of your medical bills and 60% of lost wages and replacement services
- Extended Florida PIP covers 100% of medical bills and 80% of lost wages and replacement services
If PIP is optional in your state, you can decline it if you have a good health insurance plan. But PIP has some perks your health insurance won’t provide, such as reimbursement for services and lost wages.
Medical Expenses Coverage
Medical expenses coverage is also known as medical payments coverage and often referred to as “MedPay.” It’s similar to PIP in that it pays for medical bills and other expenses for you and your passengers, no matter who caused the car accident. Unlike PIP, it doesn’t pay for pain and suffering or reimburse you for replacement services.
How Much MedPay Should I Buy?
In states where MedPay is available, it’s usually sold in small amounts of coverage that often range between $1,000 and $5,000.
Optional Car Insurance Coverage Types
Liability insurance, uninsured motorist coverage, medical payments, and collision and comprehensive insurance are a good foundation for a car insurance policy. But you might need a few additional coverage types to fill in some gaps. Here are some to consider.
How To Buy Car Insurance
Once you’re ready to buy your car insurance policy, you’ll want to shop around to find the company that best fits your needs. You can get quotes online or by calling an agent, and it’s wise to compare car insurance quotes from multiple companies.
Make sure you ask about car insurance discounts. Insurance companies offer many types of discounts to attract customers—everything from good driver discounts, car safety discounts, and multi-policy discounts to discounts for paying in full or going paperless
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How Much Car Insurance Do I Need Frequently Asked Questions (FAQs)
What types of car insurance are mandatory?
Liability insurance—which includes bodily injury liability coverage and property damage liability coverage—is mandatory in nearly every state. Some states also require car owners to carry one or more of the following types of auto insurance:
- Uninsured motorist insurance
- Personal injury protection (PIP)
- Medical payments coverage (MedPay)
State regulations aren’t the only factor that can affect your coverage needs. If you finance or lease your vehicle, you may also have to carry collision and comprehensive coverage.
What states require PIP and UM coverage?
The following states require that car owners purchase personal injury protection (PIP) and/or uninsured motorist (UM) coverage.
| State | PIP | UM |
|---|---|---|
| Connecticut | ✓ | |
| Delaware | ✓ | |
| Florida | ✓ | |
| Hawaii | ✓ | |
| Illinois | ✓ | |
| Kansas | ✓ | ✓ |
| Kentucky | ✓ | |
| Maine | ✓ | |
| Maryland | ✓ | ✓ |
| Massachusetts | ✓ | ✓ |
| Michigan | ✓ | |
| Minnesota | ✓ | ✓ |
| Missouri | ✓ | |
| Nebraska | ✓ | |
| New Hampshire | ✓ | |
| New Jersey | ✓ | ✓ |
| New York | ✓ | ✓ |
| North Carolina | ✓ | |
| North Dakota | ✓ | ✓ |
| Oregon | ✓ | ✓ |
| South Carolina* | ✓ | |
| South Dakota | ✓ | |
| Utah | ✓ | |
| Vermont | ✓ | |
| Virginia* | ✓ | |
| Washington, D.C. | ✓ | |
| West Virginia | ✓ | |
| Wisconsin | ✓ |
What deductible should I choose?
Choose a car insurance deductible that you could pay without causing yourself financial hardship. Choosing a higher car insurance deductible, such as $1,500 or $2,000, will lead to lower rates, but you’ll be responsible for that higher amount if you file a claim.
It’s wise to find out how much you can save by raising your car insurance deductible by asking your insurance agent to give you car insurance quotes with varying deductible amounts. See which types of coverage require a deductible.
| Coverage type | Deductible? |
|---|---|
| Collision | Yes |
| Comprehensive | Yes |
| Liability insurance | No |
| Personal injury protection (PIP) | Varies by state |
| Uninsured motorist bodily injury | Not typically |
| Uninsured motorist property damage | Varies by state |
