Minimum Auto Insurance Requirements by State

All drivers should take the time to learn more about auto insurance because not holding enough insurance could result in losing personal assets from injury lawsuits.

Auto insurance is tricky business. The numbers can be difficult to read, the plans can be expensive, and the effects of not purchasing auto insurance can be detrimental.

All drivers should take the time to learn more about auto insurance to avoid losing more than their cars and licenses: not holding enough insurance could result in losing personal assets due to injury lawsuits

Hold the Minimum Required or Coverage Equal to Your Assets

Most states require some form of liability insurance, and many states require personal injury insurance as well. Before choosing an insurance policy, drivers should see what is required by their state.

While it is usually a good idea to have enough insurance coverage to equal to the total value of a policyholder’s assets, if nothing else, he or she should be sure to hold the minimum coverage to avoid potential lawsuits and accident attorneys seeking money for the injuries and damages sustained in an accident.

Understanding How to Read Insurance Coverage Figures

The numbers are arranged in thousands of dollars by amount of insurance coverage for personal injuries/insurance coverage for injuries of all injured in the vehicle/insurance coverage for vehicle damages and repairs. Some states also require uninsured or underinsured motorist coverage, and this information is included following the state's minimum required liability insurance.

For example, Louisiana's minimum requirements are $10,000 for the driver's injuries/$20,000 for all injuries within the vehicle/$10,000 coverage for property damage, and this state does not require uninsured/underinsured motorist coverage. Remember that liability does not cover any personal injuries or personal property damage, just the injuries and damages of the other vehicles involved in the accident.

Amount of Liability Coverage Required by State

    Alabama25/50/25, No
    Alaska50/100/25, No
    Arizona15/30/10, No
    Arkansas25/50/25, No
    California 15/30/5, No
    Colorado25/50/15, No
    Connecticut20/40/10, Yes
    Delaware15/30/10, No
    D.C.25/50/10, Yes
    Florida10/20/10, No
    Georgia25/50/25, No
    Hawaii20/40/10, No
    Idaho25/50/15, No
    Illinois20/40/15, Yes
    Indiana25/50/10, No
    Iowa20/40/15, No
    Kansas25/50/10, Yes
    Kentucky25/50/10, No
    Louisiana10/20/10, No
    Maine50/100/25, Yes
    Maryland20/40/15, Yes
    Massachusetts20/40/5, Yes
    Michigan20/40/10, No
    Minnesota30/60/10, Yes
    Mississippi25/50/25, No
    Missouri25/50/10, Yes
    Montana25/50/10, No
    Nebraska25/50/25, No
    Nevada15/30/10, No
    New Hampshire25/50/25 Financial Responsibility only, Yes
    New Jersey15/30/10, Yes
    New Mexico25/50/10, No
    New York25/50/10, Yes
    North Carolina30/60/25, Yes
    North Dakota25/50/25, Yes
    Ohio12.5/25/7.5, No
    Oklahoma25/50/25, No
    Oregon25/50/10, Yes
    Pennsylvania15/30/5, No
    Rhode Island25/50/25, Yes
    South Carolina25/50/25, Yes
    South Dakota25/50/25, Yes
    Tennessee25/50/10, No
    Texas 25/50/25, No
    Utah25/50/15, No
    Vermont25/50/10, Yes
    Virginia25/50/20, Yes
    Washington25/50/10, No
    West Virginia20/40/10, Yes
    Wisconsin25/50/10 Financial Responsibility only, Yes
    Wyoming25/50/20, No

*figures from "State Auto Insurance - What Are The Requirements?"

Although these figures represent the minimum insurance required by law, policyholders should purchase enough coverage to prevent personal property loss from potential lawsuits. For people who own older cars and do not have many assets, the minimum required insurance might be the best policy and a great way to save money.