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Minimum levels of car insurance you are required to buy

By Insure.com
Last updated Jan. 4, 2010
 

Most states require you have car insurance and have laws that outline the minimum level of coverage you must buy. In states that don't, you must prove that you have enough assets in case you cause an accident. If you don't have enough assets, you will be required to buy car insurance.

However, the minimum limits your state requires may not necessarily be adequate. A car accident can cost far more than the limits mandated by most states. The Insurance Information Institute recommends you carry at least $100,000 of bodily injury protection per person and $300,000 per accident (known as 100/300).

What is no-fault?

If your state has a "no-fault" auto insurance law, your policy must pay medical bills for you and your passengers regardless of who caused the accident. No-fault laws are intended to keep insurance fraud down.

How to read liability limits

Here's how to read the following table of liability minimums.

First number: Bodily injury liability maximum for one person injured in an accident.

Second number: Bodily injury liability maximum for all injuries in one accident.

Third number: Property damage liability maximum for one accident.

For example, if you live in New York, the minimum liability limits are $25,000 for injury liability for one person, $50,000 for all injuries and $10,000 for property damage in an accident. Plus, New York requires you to have personal injury protection (PIP) and uninsured motorist coverage (UM).

The minimums

StateLiability required? Liability minimums (in thousands of dollars)PIP required?No-fault state?Uninsured motorist coverage required?
AlabamaYes, 25/50/25NoNoNo
AlaskaYes, 50/100/25NoNoNo
ArizonaYes, 15/30/10NoNoNo
ArkansasYes, 25/50/25YesNoNo
California (1)Yes, 15/30/5NoNoNo
ColoradoYes, 25/50/15NoNoNo
ConnecticutYes, 20/40/10NoNoYes
DelawareYes, 15/30/10YesNoNo
Florida (2)No, 10/20/10YesYesNo
GeorgiaYes, 25/50/25NoNoNo
HawaiiYes, 20/40/10YesYesNo
IdahoYes, 25/50/15NoNoNo
IllinoisYes, 20/40/15NoNoYes
IndianaYes, 25/50/10NoNoNo
IowaYes, 20/40/15NoNoNo
KansasYes, 25/50/10YesYesYes
KentuckyYes, 25/50/10YesYesNo
LouisianaYes, 15/30/25NoNoNo
Maine (3)Yes, 50/100/25NoNoYes
Maryland (4)Yes, 20/40/15YesNoYes
MassachusettsYes, 20/40/5YesYesYes
MichiganYes, 20/40/10YesYesNo
MinnesotaYes, 30/60/10YesYesYes
MississippiYes, 25/50/25NoNoNo
MissouriYes, 25/50/10NoNoYes
MontanaYes, 25/50/10NoNoNo
NebraskaYes, 25/50/25NoNoNo
NevadaYes, 15/30/10NoNoNo
New HampshireNo, 25/50/25NoNoYes
New Jersey (5)Yes, 15/30/5YesYesYes
New MexicoYes, 25/50/10NoNoNo
New York (6)Yes, 25/50/10YesYesYes
North CarolinaYes, 30/60/25NoNoYes
North DakotaYes, 25/50/25YesYesYes
OhioYes, 12.5/25/7.5NoNoNo
OklahomaYes, 25/50/25NoNoNo
OregonYes, 25/50/10YesNoYes
PennsylvaniaYes, 15/30/5YesYesNo
Rhode Island (2)Yes, 25/50/25NoNoYes
South CarolinaYes, 25/50/25NoNoYes
South DakotaYes, 25/50/25NoNoYes
Tennessee (2)Yes, 25/50/15NoNoNo
TexasYes, 30/60/30NoNoNo
Utah (2)Yes, 25/65/15YesYesNo
VermontYes, 25/50/10NoNoNo
VirginiaYes, 25/50/20NoNoYes
WashingtonYes, 25/50/10NoNoNo
Washington D.C.Yes, 25/50/10NoNoYes
West VirginiaYes, 20/40/10NoNoYes
Wisconsin*No, 50/100/55NoNoYes
WyomingYes, 25/50/20NoNoNo
Source: Insurance Information Institute

* As of June 1, 2010, auto insurance in Wisconsin will be required.

1) Low-cost policy limits for drivers in the California Automobile Assigned Risk Plan are 10/20/3.

(2) Instead of policy limits, policyholders can satisfy the requirement with a single combined policy. Amounts vary by state.

(3) In addition, policyholders must carry at least $1,000 for medical payments.

(4) PIP may be waived for the policyholder but it is compulsory for passengers.

(5) Basic policy (optional) limits are 10/10/5. UM/UIM coverage is not available under a basic policy but UIM is required under a standard policy.

(6) In addition, policyholders must have 50/100 for wrongful death coverage.

 
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