Minimum State Liability Requirements for Auto Insurance

When searching for auto insurance, remember that you are required to meet your state's minimum liability insurance requirements. The majority of states will have a minimum auto insurance requirement, and the level of coverage varies by state. All but two states have laws that require motorists to have liability coverage for bodily injury (BI) and property damage (PD).

If insurance costs are a concern, or you have a vehicle that you rarely use, you may want to save money by carrying only the minimum amount of auto insurance required by state law. While this can save you money on your monthly premium, it is not without risks. If you get into an accident, you may end up paying a lot of money out of your own pocket. If an accident you are at fault for, results in a bodily injury claim exceeding your coverage, you will have to pay the balance with your own monetary resources. Some states also require personal injury protection (PIP), underinsured motorist protection (UIM) and uninsured motorist protection (UM), in addition to bodily injury and property liability coverage, but this varies widely from state to state.

Liability coverage is used when you are at fault for an accident and need to cover injury or property damage of the other party. On your car insurance policy you'll usually see your liability expressed as three numbers separated by a backslash symbol. It could look something like this: 50/100/25. If you don't know much about reading insurance policies, you may overlook these all important numbers. Each number represents thousands of dollars. The first number tells you the maximum amount your auto insurance provider will cover for one person's injuries from a car accident. In this case, your auto insurance company will pay up to 50,000 dollars for an individual injured in an accident you are deemed responsible for. The second amount, 100,000 dollars, states the maximum dollar amount your car insurer will pay for all persons injured in an accident. The last number is how much auto insurance liability coverage is dedicated to property damage. For this example, that amount is 25,000 dollars.

Your personal liability coverage will not cover any sort of damage to you or your car under any circumstances. It is strictly for damage you may cause to others with your automobile. This means that if you accidentally run your car into a ditch or into a pole, for instance, your auto insurance company will not pay to have your car repaired or replaced under this type of coverage. It also will not provide coverage for stolen vehicles or damage from natural elements like floods. Since liability insurance does not cover a large scope of insurance claim scenarios, it will be less expensive than a comprehensive insurance plan that protects not only others, but you and your automobile. You will need to asses whether you can handle the risk of this limited type of coverage when choosing an insurance policy.

State Auto Insurance Liability Requirements

• Alaska: 50/100/25
• Alabama: 20/40/10
• Arkansas: 25/50/25
• Arizona: 15/30/10
• California: 15/30/5
• Colorado: 25/50/15
• Connecticut: 20/40/10
• Delaware: 15/30/10
• Florida: 10/20/10
• Georgia: 25/50/25
• Hawaii: 20/40/10
• Idaho: 25/50/15
• Illinois: 20/40/15
• Indiana: 25/50/10
• Iowa: 20/40/15
• Kansas: 25/50/10
• Kentucky: 25/50/10
• Louisiana: 10/20/10
• Maine: 50/100/25
• Maryland: 20/40/15
• Massachusetts: 20/40/5
• Michigan: 20/40/10
• Minnesota: 30/60/10
• Mississippi: 25/50/25
• Missouri: 25/50/10
• Montana: 25/50/10
• Nebraska: 25/50/25
• Nevada: 15/30/10
• New Hampshire: No minimum auto insurance liability
• New Jersey: 15/30/5
• New Mexico: 25/50/10
• New York: 25/50/10
• North Carolina: 30/60/25
• North Dakota: 25/50/25
• Ohio: 12.5/25/7.5
• Oklahoma: 25/50/25
• Oregon: 25/50/10
• Pennsylvania: 15/30/5
• Rhode Island: 25/50/25
• South Carolina: 25/50/25
• South Dakota: 25/50/25
• Tennessee: 25/50/10
• Texas: 25/50/25
• Utah: 25/50/15
• Vermont: 25/50/10
• Virginia: 25/50/20
• Washington: 25/50/10
• West Virginia: 20/40/10
• Wisconsin: No minimum auto insurance liability
• Wyoming: 25/50/20

Sources

1. Compulsory Auto/Uninsured Motorists. (2008). Retrieved April 7, 2008, from http://www.iii.org/media/hottopics/insurance/compulsory/?table_sort_738334=4
2. Texas Financial Responsibility Law: Minimum Auto Liability Insurance Limits Have Increased. (2008). Retrieved April 7, 2008, from http://www.tdi.state.tx.us/CONSUMER/financialrespon.html