What is the Minimum Car Insurance Required in Your State? – ValuePenguin

All states have minimum car insurance requirements (the amount of coverage you need to be legally insured), and you generally need to have this coverage to drive your car. however, the minimum amount of coverage varies by state; We have compiled the minimum required car insurance for each state in the US. uu.

minimum car insurance limits in each state

In general, there are five types of coverage that a state may require. With the exception of Florida, all states require Bodily Injury Liability (BI) insurance, while all 50 states plus Washington, D.C. require Property Damage Liability (PD) insurance.

About half of states require an uninsured or underinsured motorist (UIM) type of insurance. Finally, only a few states require personal injury protection (PIP) insurance or a similar type of self-benefit insurance.

Together, these basic coverages are what is considered the state minimum, which is often the cheapest possible option for auto insurance.

what types of car insurance are mandatory?

Various types of auto insurance coverage offer different protections in the event of an accident. the amount of coverage you’ll need depends on your state’s requirements and your personal circumstances.

The table below quickly summarizes the main differences between the mandatory types of auto insurance.

Which states do not require auto insurance?

Only a few states do not require drivers to have auto insurance.

Also, many states allow you to self-insure with a cash deposit or bond instead of having auto insurance. however, the required deposit amount ranges from $25,000 to more than $115,000 and leaves you with few additional protections; for example, you are only there to negotiate claims with other drivers. we do not recommend this route for most drivers.

Should I get minimum coverage or full coverage auto insurance?

Drivers should carry the minimum coverage only when they can’t afford higher limits or have limited assets. Car accidents are expensive, and your out-of-pocket costs could be significant without adequate insurance. the average hospital visit for a car accident costs $61,000, and 1 in 8 liability claims exceed $1 million.

A general rule of thumb with liability insurance: If you have more than $100,000 in assets and often engage in risky activities, you may benefit from purchasing an umbrella policy to further bolster your protection.

the benefits of full coverage auto insurance

Comprehensive coverage auto insurance is minimum auto insurance plus collision, comprehensive, and pip coverage (if your state doesn’t require it).

None of the mandatory coverages will reimburse you for damages to your own car that you cause yourself or that happen outside of an accident. So if you’re at fault in an accident, or a branch falls on your windshield or a storm floods your neighborhood, for example, the minimum car insurance won’t protect your car.

However, if you have comprehensive and collision insurance, you may be able to get reimbursed for damages caused by those incidents. With the addition of collision and comprehensive, your policy could be more than double what it would cost with minimum insurance. but if you have a newer car and can afford it, we recommend adding these coverages to your policy.