Minimum Car Insurance Requirements in Every State

Car insurance protects you and your finances after an accident. If you’re a driver, it makes financial sense to have an active policy. Even beyond that, most states mandate minimum insurance amounts.

Each state’s drivers usually need bodily injury and property damage liability protection. But some states require additional coverage, like personal injury protection or uninsured motorist protection. It’s important to understand your state’s requirements and determine if you have enough insurance or if you should add endorsements to further protect yourself and others.

Here’s everything you need to know about car insurance requirements by state.

Minimum car insurance requirements by state

Each state determines the minimum car insurance requirements for drivers. Here are the mandated amounts for every state.

Types of minimum car insurance requirements

Each state sets minimum car insurance requirements. Most states require the same type of coverage, but the amounts vary. Some states require drivers to have all the coverage types below, while others only require liability coverage.

Bodily injury liability

Property damage liability

Uninsured/underinsured motorist coverage

Comprehensive and collision coverage

Personal injury protection: At-fault and no-fault states

How states determine minimum coverage amounts

States reconsider minimum coverage amounts when medical, car repair, and auto insurance costs increase.

Cost of medical care and car repairs

States consider the costs of medical care and car repairs when determining state minimum insurance requirements. Liability insurance covers the damage and injuries that policyholders cause to other drivers and cars, so a $5,000 policy limit per person for bodily injury liability would only cover up to $5,000 in medical costs.

For example, California passed a new law to increase its minimum liability limits from 15/30/5 to 30/60/15 in 2025. Public News Service reported that when the state set the original rates in 1967, it would’ve covered a two-week hospital stay or the cost of replacing a vehicle.3 However, medical costs have risen since the ’60s, so California increased the liability limits starting Jan. 1, 2025, to reflect this.4

Car insurance affordability

States may change their car insurance minimums to provide more flexibility for car owners to choose their coverage limits.

For example, Michigan changed its minimum car insurance requirements so that drivers can choose their own personal injury protection limits based on how much health insurance they have to potentially lower their premiums. And certain Medicare participants are eligible to opt out of personal injury protection coverage.5 6

How to choose the right amount of car insurance coverage

It’s important to understand your state’s minimum insurance requirements and how they affect your premium. But you may want to work with your insurance company to add coverage beyond the state requirements to ensure your policy is robust enough to handle your specific needs.

Full coverage vs. liability only

“While it may be tempting to go with the bare minimum to save money, it’s important to understand the pros and cons,” explains John Espenschied, insurance expert and owner of Insurance Brokers Group. “The cons include limited coverage in the event of an accident and the risk of being underinsured. If you cause an accident and the damages exceed your coverage limits, you could be held personally liable for the difference.”

Full-coverage policies typically include comprehensive and collision insurance. You should consider a full-coverage policy if:

• You have a loan or lease on your car. The lender or lessor may require full-coverage insurance in this case.

• Your car is a newer model with comparably higher repair costs.

• You live and commute in high-traffic areas where accidents are common.

• You’re concerned about car theft or vandalism in your area.

• Your personal financial situation would make it difficult to cover high repair fees.

Always compare quotes from multiple car insurance companies when you shop for car insurance. “Don’t settle for the first insurance company you come across,” says Espenschied. “Shop around and compare rates to find the best deal.”