Minimum car insurance requirements by state in 2024

What is the purpose of minimum insurance coverage and is state minimum car insurance the right choice for you? Learn more about car insurance requirements by state.

Maggie has twenty years of experience working in media. She is a writer and editor on car insurance and related issues. Before joining Insure.com, she reported on health, education and lifestyle for magazines, websites and newspapers in Nevada.

Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.

Dr. Brau teaches finance principles, entrepreneurial finance, financial planning, and corporate finance at Brigham Young University’s School of Business. His research includes issues related to initial public offerings, financial education, real estate, and entrepreneurial finance.

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Why purchase car insurance? The reason is to protect yourself, your family and your assets with enough coverage if you’re in an accident. From a fender bender to a serious accident that causes multiple injuries, auto insurance is meant to protect the policyholder. 

Despite its protective nature, people still choose to go without car insurance coverage – ranging from 3.1% in New Jersey to 29.4% in Mississippi, according to the National Association of Insurance Commissioners. This drives up rates for all drivers in that state.

At the very least, it’s important to get the minimum liability requirements set in each state to remain legally compliant. Car insurance requirements vary by state.

Key Takeaways

What is the state minimum for car insurance?

Drivers can learn their state’s minimum car insurance rates by looking at the Department of Motor Vehicles’ website or the table of rates below. To drive legally, you must show proof of insurance for the minimum requirements in your state. 

They can always purchase coverage at higher rates, but if they purchase less coverage than required – or buy no coverage – they may put themselves and others at financial risk.

Minimum liability car insurance requirements by state

Find your state's car insurance requirements

See the minimum insurance requirements in each state in the table below.

(subject to a $150 deductible)

After reviewing the minimum auto insurance requirements for your state, you may have questions about the terms used in the table – see below.

How much state minimum car insurance costs

The minimum car insurance costs anywhere from $260 to $993 in states across the U.S. Geico has the cheapest state minimum liability premiums, followed by State Farm and USAA. However, USAA is only available for members of the military community and their families.

How much does state minimum car insurance cost in every state?

Iowa, Wyoming, Vermont, South Dakota and Nebraska have the cheapest minimum insurance coverage in the U.S. The most expensive states are Florida, New Jersey, Delaware, New York and Maryland when it comes to state minimum insurance coverage. See more rates in the table below.

How much does minimum liability car insurance cost by company?

Geico is the cheapest company for the state minimum liability premiums, followed by State Farm, USAA and Progressive. Travelers was the most expensive. See the table below for more rates.

QuickTake

Is car insurance required in all states?

All states set minimum liability insurance requirements; only two states allow drivers to avoid purchasing insurance through other requirements. 

Most states require individuals to purchase bodily injury liability insurance for an individual and all persons in an accident; some states also set minimum liability requirements for property damage, too. And there’s more – in some states, individuals additionally need to purchase insurance for medical payments, uninsured motorists and underinsured motorists.

Which states don’t require car insurance?

Interestingly, only two states in the country do not require car insurance. One of these is the heavily forested state of New Hampshire; state law allows residents to forego car insurance as long as they can prove they have enough money to cover the expenses and costs if they are in an at-fault accident. If they cannot provide proof of this and drive without insurance, their driving privileges in the state could be suspended.

Virginia also does not require auto insurance. However, drivers without insurance must pay a $500 Uninsured Motor Vehicle Fee, which also needs renewing at every vehicle registration. Also, this fee does not provide coverage in the case of an accident; rather, it is a fee paid to Virginia’s Department of Motor Vehicles that allows drivers to drive uninsured.

What happens if I don’t meet my state’s minimum car insurance requirements?

The consequences of not meeting the state minimum car insurance requirements vary, but generally, the risk may not be worth the headache of ignoring the law. In New Mexico, drivers can have their registration suspended if the state’s Motor Vehicle Department discovers drivers lack the required minimum car insurance requirements. To reinstate it in New Mexico, drivers must show proof of insurance and pay a $30 fee.

In Illinois, drivers are mandated to meet the state minimum car insurance requirements – an Electronic Insurance Verification process verifies policies twice a year. Drivers not meeting the state’s minimum requirements or not having proof of insurance will be sent warnings; on the second verification attempt, drivers will be sent a registration suspension letter.

In short, drivers could face suspended registration or even a suspended driver’s license. And, if an accident occurs and the at-fault driver has no insurance or no way to pay for damages, they could see their savings and finances drained if they cannot cover expenses themselves.

Should I get minimum coverage or full-coverage car insurance?

Minimum coverage protects drivers at the minimum amount; this could mean that a driver who purchases minimum coverage does not have enough to be protected in an accident.

In many states, the state minimum car insurance rates are 25/50/25, which refers to $25K of bodily injury insurance per person, $50K per accident and $25K property damage protection.

“Younger drivers may be able to get away with carrying just the minimum limits if they are trying to save on money,” says Lauren McKenzie, insurance broker/agent with A Plus Insurance in Sierra Vista, Arizona.“

Drivers can also talk with their insurance provider to see what discounts they may be eligible for, and also go over the unnecessary additional coverages they may not need to help save money.

Our take: State minimum car insurance coverage

Those drivers with only the state minimum liability insurance might not be sufficient to cover injuries and damages in an accident. If expenses for an accident exceed the coverage amount, the insured will be liable for the damages. Without coverage, you’ll have to pay out-of-pocket or may need to dig into your savings account, investments or assets. 

Insure editors recommend purchasing 100/300/100 liability insurance, referring to a minimum of $100K of bodily injury protection for an individual, $300K per accident and $100K for property damage.

“Most drivers I would recommend carrying higher liability limits than what the state requires for minimum limits for several reasons,” McKenzie says. “The state-required minimum liability limits may not be sufficient to cover the full extent of damages in an accident. If those damages exceed your coverage limits, in an accident deemed At Fault, the driver could be liable for the remaining costs. Drivers who choose to increase their liability limits would be increasing their financial protection as well.”

Frequently asked questions

What is the purpose of minimum insurance coverage?

Minimum insurance coverage protects drivers with minimal coverage. For example, liability insurance covers the costs for medical and property damages that result when a driver is in an accident and is at fault. Without insurance, the driver must find a way to pay for expenses. 

This is why it is illegal to drive without coverage in nearly every state; minimum insurance coverage is the lowest amount of coverage that is legally allowed to be purchased in the state.

Is 50/100 insurance enough?

While 50/100/50 provides more coverage and better protection than 25/50/25, those amounts are not what Insure.com and the Insurance Information Institute recommend — a minimum of $100K for bodily injury protection per individual and $300K for each accident.

“50/100 coverage would pay out $50,000 each person for bodily injury expenses, and up to $100,000 per accident, which is double 25/50 limits,” McKenzie says. “Usually, the price difference to increase liability limits to even the next step higher is not a significant price increase. Oftentimes, it is a matter of a couple of dollars per month to increase the liability limits higher.”

Why do states impose a minimum for car insurance?

Two-thirds of states have a minimum liability insurance set at 25/50, while others have lower or higher minimums. Maryland and Maine are two states with the highest minimum insurance coverage. Maine, for example, requires minimums of 50/100.

If states did not set minimums for car insurance, individuals might choose to drive without coverage, putting themselves and others at financial risk. One in eight individuals drives without insurance, with lack of affordability a major reason for not purchasing it. 

“Purchasing the state minimum liability limits would be a good option for drivers who want the cheapest monthly cost possible but still be considered legal to drive,” McKenzie says. “Especially if drivers are young and just starting out, they may have less financial assets, which in turn will lower the likelihood of them becoming sued in the event that their liability limits are not sufficient to cover damages in a serious accident.”

Resources & Methodology

Sources:

Insurance Information Institute. “Automobile Financial Responsibility by State.” Accessed January 2024.

Insurance Information Institute. “Is it Legal to Drive without Insurance?” Accessed January 2024.

Oklahoma Insurance Department. “Auto Insurance: Common Myths.” Accessed January 2024.

National Association for Insurance Companies. “Uninsured Motorists.” Accessed January 2024.

New Hampshire Insurance Department.“2022 Automobile Insurance Consumer Frequently Asked Questions.” Accessed January 2024.

New Mexico Motor Vehicle Department.“Insurance.” Accessed January 2024.

Progressive.“Car Insurance Requirements by State.” Accessed January 2024.

Methodology

Insure editors in 2023 collected annual rates from Quadrant Information Services for a 40-year-old driving a Honda Accord LX with a good insurance score and no violation on record for a state minimum liability insurance policy. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies.

What our expert says

Q: Should drivers get more than the state minimum auto insurance?

Maggie has twenty years of experience working in media. She is a writer and editor on car insurance and related issues. Before joining Insure.com, she reported on health, education and lifestyle for magazines, websites and newspapers in Nevada.

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