How Much Car Insurance Do I Need?
- Nearly every state makes drivers get liability car insurance, which covers your costs when you’re legally responsible for someone else’s property damage and injuries.
- If you have a car loan or lease, you’ll also usually need full coverage insurance, which covers damage to your own car.
- More coverage can help protect your savings if you’re in an accident.
How much car insurance should you get?
The exact amount of car insurance you need depends largely on your car and financial situation.
If you’re a new driver and don’t own a home, your state’s minimum requirements may be enough. You’ll need more coverage for a car loan or lease.
As your income and savings grow, you can get more coverage to protect your finances.
What is the minimum amount of car insurance needed?
The minimum amount of car insurance you need to drive legally depends on your state’s insurance requirements.
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Almost every state requires liability insurance
. This covers injuries and property damage you cause to other people or their property.New Hampshire is the only state that doesn’t require car insurance for most drivers, though you’re still liable for any damage or injury you cause.
- More than 20 states also require uninsured motorist coverage. This covers you and your passengers for injuries caused by a driver without insurance.
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Some states require personal injury protection (PIP), in addition to liability. PIP covers injuries to you and your passengers
.PIP is often called no-fault insurance, because it kicks in whether you or another driver is responsible.
States often describe their liability insurance requirements with three numbers divided by slashes, as shown in the table below.
- The first number is the most your insurance pays for each person you injure in an accident, expressed in thousands of dollars.
- The second number is the maximum your insurer will pay in total for all people you injure in a single accident, expressed in thousands of dollars.
- The third number is how many thousands your insurer will pay for damage you cause to other people’s vehicles or other types of property.
So for example, a 25/50/25 policy pays up to…
- $25,000 for each person you injure in a crash
- $50,000 for all people you injure in a crash
- $25,000 for damage to other people’s vehicles and property
Minimum car insurance requirements by state
| State | Minimum liability limits ($1,000s) | Uninsured motorist | PIP/MedPay |
|---|---|---|---|
| Alabama | 25/50/25 | Optional | Optional |
| Alaska | 50/100/25 | Optional | Optional |
| Arizona | 25/50/15 | Optional | Optional |
| Arkansas | 25/50/25 | Optional | Optional |
| California | 30/60/15 | Optional | Optional |
| Colorado | 25/50/15 | Optional | Optional |
| Connecticut | 25/50/25 | Required | Optional |
| Delaware | 25/50/10 | Optional | Required |
| District of Columbia | 25/50/10 | Required | Optional |
| Florida | $10,000 property damage coverage | Optional | Required |
| Georgia | 25/50/25 | Optional | Optional |
| Hawaii | 40/80/20 | Optional | Required |
| Idaho | 25/50/15 | Optional | Optional |
| Illinois | 25/50/20 | Required | Optional |
| Indiana | 25/50/25 | Optional | Optional |
| Iowa | 20/40/15 | Optional | Optional |
| Kansas | 25/50/25 | Required | Required |
| Kentucky | 25/50/25 | Optional | Required |
| Louisiana | 15/30/25 | Optional | Optional |
| Maine | 50/100/25 | Required | Required |
| Maryland | 30/60/15 | Required | Required |
| Massachusetts | 25/50/30 | Required | Required |
| Michigan | 50/100/10 | Optional | Required |
| Minnesota | 30/60/10 | Required | Required |
| Mississippi | 25/50/25 | Optional | Optional |
| Missouri | 25/50/25 | Required | Optional |
| Montana | 25/50/20 | Optional | Optional |
| Nebraska | 25/50/25 | Required | Optional |
| Nevada | 25/50/20 | Optional | Optional |
| New Hampshire* | 25/50/25 | Required | Required |
| New Jersey** | 35/75/25 | Required | Required |
| New Mexico | 25/50/10 | Optional | Optional |
| New York | 25/50/10 | Required | Required |
| North Carolina | 50/100/50 | Required | Optional |
| North Dakota | 25/50/25 | Required | Required |
| Ohio | 25/50/25 | Optional | Optional |
| Oklahoma | 25/50/25 | Optional | Optional |
| Oregon | 25/50/20 | Required | Required |
| Pennsylvania | 15/30/5 | Optional | Required |
| Rhode Island*** | 25/50/25 | Required | Optional |
| South Carolina | 25/50/25 | Required | Optional |
| South Dakota | 25/50/25 | Required | Optional |
| Tennessee | 25/50/15 | Optional | Optional |
| Texas | 30/60/25 | Optional | Optional |
| Utah | 30/65/25 | Optional | Required |
| Vermont | 25/50/10 | Required | Optional |
| Virginia | 50/100/25 | Required | Optional |
| Washington | 25/50/10 | Optional | Optional |
| West Virginia | 25/50/25 | Required | Optional |
| Wisconsin | 25/50/10 | Required | Optional |
| Wyoming | 25/50/20 | Optional | Optional |
**New Jersey limits are for standard policies. The state also accepts a Basic policy, which has $15,000 in PIP coverage (per person, per accident), $5,000 in property damage (per accident), and no uninsured motorist coverage.
***Uninsured motorist coverage can be waived in Rhode Island under certain circumstances.
How much car insurance do I need when I buy a car?
If you buy a car with a loan, your lender will protect its financial interest in your car by making you get a full coverage insurance policy with at least collision and comprehensive coverages.
- Collision pays to repair damage to your own car from a collision with an object or another vehicle.
- Comprehensive covers your car for theft and damage from noncollision causes like fire, flood and vandalism.
If you have an existing policy with collision and comprehensive coverages, the policy will also cover the car you’re buying, but only temporarily. The grace period can last from seven to 30 days, depending on the situation.
Should I get gap insurance coverage?
If you total your car, gap coverage helps pay off your car loan if your insurance payment isn’t large enough. This can happen during the early years of a loan, when your car’s value may drop quickly.
You may need gap coverage if you finance a car with a low down payment.
Some car insurance companies offer gap coverage as an optional add-on. Many financing companies and car dealerships offer a similar form of the protection known as a gap waiver.
Car insurance companies usually let you remove gap coverage at just about any time. This lets you stop paying for it after a few years, when you may not need it anymore.
On the other hand, lender and car dealership gap plans often last for your entire loan term, even if you don’t need it for that long.
How much car insurance is good to have?
It’s generally good to have enough car insurance to prevent a car accident from devastating your finances. Unfortunately, the minimum amount of insurance you need to drive legally isn’t always enough.
For example, the minimum liability requirement in many states is $25,000 per injured person, but the cost can easily go above $50,000 if that person needs inpatient hospital care. If you’re at fault in a situation like this, you can be held personally responsible for the difference.
How do car insurance coverage types work?
Knowing how the main car insurance coverage types work can help you choose the right amount of each. Here are key things to consider as you compare car insurance quotes.
How much auto liability do I need?
It’s important to choose liability limits that protect your financial resources.
No one ever expects to cause a car accident, but the expenses from one can add up fast. In addition to medical bills, you may have to cover a victim’s lost wages if they miss work. For severe injuries, you can also be sued for causing pain and suffering.
A high liability limit protects you from having to tap into your savings or other resources to cover expenses like these. Auto liability usually also covers your legal defense for a liability claim.
Auto liability coverage recommendations
Liability limits are in thousands of dollars; see “Reading liability limits” above.
| Liability limits* | Best for |
|---|---|
| State minimum | Drivers on a tight budget |
| 50/100/25 | Non-homeowners with moderate incomes |
| 100/300/50 | Homeowners with above-average income |
| 250/500/100 or more | Drivers with a mid-to-high net worth |
When do I need full coverage car insurance?
Collision and comprehensive coverages are usually offered as part of a full coverage car insurance policy. Both are usually required for a car loan or lease. They’re generally also worth getting for a car worth more than $5,000, even if it’s paid off.
- Both types of insurance cover your car at its estimated resale value at the time of a loss.
- Both come with a deductible, which is the amount you pay for repairs.
If your car is worth a few thousand dollars or less, your insurance payment won’t be very large after your deductible. This often makes it worth dropping full coverage for an older car with a low resale value.
Do I need PIP or medical payments for car insurance?
Personal injury protection (PIP) and medical payments coverage (MedPay) spare you from out-of-pocket healthcare costs after an accident.
Both cover injuries to you and your passengers, whether you or another driver is at fault. PIP also covers lost wages and services like transportation or housekeeping during your recovery.
PIP or MedPay is required in 17 states. One or both are optional in most others. You usually only need one or the other, but there are some exceptions. In Florida, for example, PIP is required by law, but you can use MedPay for expenses that PIP doesn’t cover.
Is uninsured motorist coverage worth it?
The low cost of uninsured motorist coverage often makes it worth getting, if it’s not already required in your state. It’s usually offered in amounts that match your liability limits.
Even though car insurance is required by law, 15% of drivers don’t have it, according to a 2023 Insurance Research Council report. If one of these drivers causes a crash with you, uninsured motorist coverage pays your medical bills and car repair expenses.
Health insurance also helps pay for medical treatment in a situation like this, but uninsured motorist coverage protects you from coinsurance payments and other out-of-pocket costs.
Uninsured motorist coverage often comes with underinsured motorist coverage, which is for when an at-fault driver doesn’t have enough insurance to cover your treatment.
Frequently asked questions
Your insurance policy’s coverage limits are the maximum amounts your insurance company will pay toward your costs. For example, a $50,000 bodily injury limit means your insurance company covers up to $50,000 in medical costs for a person you injure.
You usually need insurance to legally drive a car you’ve just purchased. If you already have car insurance, your policy provides temporary coverage during a grace period. For a car loan, your lender will make you add collision and comprehensive coverages to your policy, if you don’t already have them. If you don’t have insurance, you should set up a policy to begin on the day of your purchase.
You usually need a driver’s license and your car’s vehicle identification number (VIN) to get insurance for a car you own. The car has to be registered to you in the state where you live. If someone else owns the car, you probably need to add them to your policy.
Liability car insurance in some form is mandatory in almost every state, and some states have additional requirements. For example, more than 20 states also require uninsured motorist coverage. In 17 states, you need liability
No. You typically won’t need collision insurance on an old car with a low resale value, because you won’t get very much from the insurance company if it’s damaged or destroyed. However, if your old car is a collector’s item, consider insuring it with a specialty policy for classic and antique cars.
Methodology
The state liability minimums are based on publicly available information as of Sept. 23, 2026. The auto liability coverage recommendations are those of the author, Rob Bhatt, based on his experience and knowledge as a licensed insurance agent.
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