2024-01-01 · auto, state

State Minimum Auto Insurance Requirements by State

Overview

Every state sets minimum auto liability requirements, but minimums often fall short of real-world accident costs. Use this hub to look up your state’s legal minimum, understand what the numbers mean, and decide whether higher limits make sense for your situation.

Why minimums are not enough

• Serious injuries can exceed basic liability limits by tens or hundreds of thousands of dollars.
• Property damage costs have risen sharply with newer, more expensive vehicles.
• If you cause an accident and your coverage falls short, you are personally responsible for the difference.
• Medical costs, legal fees, and lost wages in a serious crash can quickly surpass even moderate policy limits.

How to use minimums

• Treat them as the legal starting point, not a recommendation.
• Compare higher liability limits that better protect your assets and savings.
• Use the coverage calculator to evaluate what limits fit your financial situation.

State-by-state minimum auto insurance requirements

The table below lists each state’s minimum liability coverage in the standard format: bodily injury per person / bodily injury per accident / property damage (for example, 25/50/25 means $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage). All figures are in thousands of dollars.

Data is current as of early 2026. Because state legislatures can update requirements, always confirm with your state’s department of insurance before making coverage decisions.

Sources: Insurance Information Institute (III), National Association of Insurance Commissioners (NAIC), and individual state department of insurance websites. Verify current requirements with your state’s department of insurance.

Understanding the numbers

When you see a state minimum listed as “25/50/25,” each number represents a coverage limit in thousands of dollars:

• First number (25): The maximum your insurer will pay for bodily injury to one person in an accident ($25,000).
• Second number (50): The maximum total your insurer will pay for bodily injury to all people in one accident ($50,000).
• Third number (25): The maximum your insurer will pay for property damage in one accident ($25,000).

Example scenario: You cause an accident that injures two people. One person has $30,000 in medical bills and the other has $15,000. With 25/50/25 limits, your insurer would pay only $25,000 for the first person (the per-person cap) and $15,000 for the second. You would owe the remaining $5,000 out of pocket for the first person’s bills. If the injuries were more severe, your personal exposure could be much larger.

This is why many financial advisors recommend carrying at least 100/300/100 if you have significant assets to protect.

No-fault states

Twelve states plus the choice states (Kentucky and Pennsylvania) operate under no-fault auto insurance systems. In these states, your own insurer pays for your medical expenses regardless of who caused the accident, up to your Personal Injury Protection (PIP) limit.

No-fault states: Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Utah.

Choice no-fault states: Kentucky and Pennsylvania allow drivers to choose between no-fault and traditional tort coverage.

In no-fault states:

• PIP coverage is mandatory and pays your own medical bills, lost wages, and related expenses.
• You generally cannot sue the other driver for minor injuries. You must meet a “tort threshold” (a dollar amount or severity of injury) before filing a lawsuit.
• You still need liability coverage in case you cause injuries or damage that exceed the no-fault threshold.
• PIP does not cover vehicle damage. You still need property damage liability, and collision coverage is separate.

Understanding your state’s no-fault rules is important because PIP requirements vary widely, from $3,000 in Utah to $50,000 in New York, and Michigan has historically offered unlimited PIP (though drivers can now select lower levels).

Why you should carry more than the minimum

State minimums are designed to meet a legal requirement, not to fully protect you financially. Consider these realities:

• Average injury claim costs exceed most minimums. According to the Insurance Information Institute, the average bodily injury liability claim is over $20,000, and serious accidents involving hospitalization, surgery, or long-term care can easily reach $100,000 or more.
• Property damage is rising. With the average new vehicle price above $48,000 and many cars equipped with expensive sensors and cameras, a $10,000 or even $25,000 property damage limit may not cover the other driver’s vehicle.
• You are personally liable for the gap. If you cause $80,000 in injuries and carry only $25,000 in coverage, you owe the remaining $55,000. Wages can be garnished and assets seized to satisfy a judgment.
• Higher limits are relatively affordable. Increasing from state minimum to 100/300/100 often adds only $20 to $50 per month, depending on your driving record and location.

For even broader protection, consider umbrella insurance, which adds an extra layer of liability coverage (typically $1 million or more) above your auto and home policies.

Use the auto insurance coverage calculator to evaluate what limits are appropriate for your assets and risk level.

Frequently asked questions

What happens if I carry only the minimum and cause a serious accident? Your insurer pays up to your policy limits. Any costs beyond that become your personal responsibility. The injured party can sue you for the difference, and a court can order wage garnishment, bank levies, or liens on your property to satisfy the judgment.

Do minimums include collision and comprehensive coverage? No. State minimums apply to liability coverage only, which pays for damage and injuries you cause to others. Collision (covers your own vehicle in a crash) and comprehensive (covers theft, weather, and other non-collision events) are separate and optional unless your lender requires them.

How often do state minimums change? States update their minimums periodically, though changes are not frequent. Some states have not changed their minimums in over a decade, while others have recently increased them. Always check with your state department of insurance for the most current figures.

Does New Hampshire really not require auto insurance? New Hampshire does not mandate that drivers carry auto insurance. However, the state has a financial responsibility law, which means you must be able to demonstrate the ability to pay for damages if you cause an accident. If you cannot, your license and registration can be suspended. Most New Hampshire drivers still carry insurance voluntarily.

What is an SR-22? An SR-22 is a certificate of financial responsibility that your insurer files with the state. It is typically required after serious violations like DUI, driving without insurance, or at-fault accidents while uninsured. It proves you carry at least your state’s minimum coverage.

Next steps

• How much auto insurance do I need? to evaluate your personal coverage needs.
• Auto insurance coverage types for a breakdown of liability, collision, comprehensive, and more.
• Uninsured/underinsured motorist coverage to learn how to protect yourself from drivers who carry no insurance or too little.
• Umbrella coverage for an extra layer of liability protection beyond your auto and home policies.
• Driving without insurance to understand the legal and financial risks.
• SR-22 insurance if you need to file proof of coverage after a violation.
• Auto insurance hub for all auto coverage guides and resources.

Sources

• Insurance Information Institute (III), “Background on compulsory auto/uninsured motorists.” iii.org
• National Association of Insurance Commissioners (NAIC), state insurance department directory. naic.org
• Individual state department of insurance websites for current minimum requirements.