Car insurance is legally required in almost every state. Most car lenders will also make you purchase full-coverage car insurance if you finance or lease a vehicle. Driving without insurance can result in expensive fines, license suspension, and thousands of dollars in out-of-pocket costs in the event of an accident.
You’re legally required to have car insurance in most states
Minimum liability coverage is mandatory in all states except New Hampshire (although you will still need to provide proof of financial responsibility in this state). Some states also require additional coverage. Driving without the minimum car insurance requirements in your state is illegal.
Required basic minimum liability coverage
Minimum liability car insurance falls into two categories:
- Bodily injury liability (BI): If you’re at fault in a car accident that injures another party, BI will help cover their medical expenses up to your policy limits.
- Property damage liability (PD): If you’re at fault in an accident that damages another party’s vehicle or other property, PD will help cover their expenses up to your policy limits.
Each state requires you to carry a minimum amount of BI and PD. Insurance requirements vary by state, but most states require liability limits of at least 25/50/25—that’s $25,000 bodily injury liability per person, $50,000 per accident, and $25,000 property damage liability.
Required additional coverages
Some state auto insurance mandates go beyond basic liability insurance and require drivers to purchase the following types of car insurance coverage:
- Uninsured/underinsured motorist coverage (UM/UIM): If you’re hit by an uninsured motorist or someone who has insufficient liability coverage, uninsured motorist coverage kicks in. Many states only require uninsured motorist coverage for bodily injury, but some states require property damage insurance as well.
- Personal injury protection (PIP): No-fault states require drivers to purchase PIP, which helps pay for medical bills for you and your passengers after an accident. It covers funerals, rehabilitation expenses, and lost wages up to your policy limits.
- Medical payments coverage (MedPay): MedPay is similar to PIP, but PIP is more comprehensive. It’s required for all drivers in Maine. New Hampshire also requires MedPay for drivers who purchase car insurance.
Here’s a breakdown of the minimum car insurance requirements in each state, and their average annual cost:
| State | Liability | UM/UIM | PIP/MedPay | Average Cost |
|---|---|---|---|---|
| Alabama | 25/50/25 | Not required | Not required | $764 |
| Alaska | 50/100/25 | Not required | Not required | $1,340 |
| Arizona | 25/50/15 | Not required | Not required | $798 |
| Arkansas | 25/50/25 | Not required | Not required | $733 |
| California | 15/30/5 | Not required | Not required | $787 |
| Colorado | 25/50/15 | Not required | Not required | $723 |
| Connecticut | 25/50/25 | 25/50 UMBI | Not required | $1,178 |
| Delaware | 25/50/10 | Not required | 15/30 PIP | $996 |
| District of Columbia | 25/50/10 | 25/50 UMBI $5,000 UMPD | Not required | $929 |
| Florida | $10,000 (PD only) | Not required | $10,000 PIP | $2,090 |
| Georgia | 25/50/25 | Not required | Not required | $1,253 |
| Hawaii | 20/40/10 | Not required | $10,000 PIP | $981 |
| Idaho | 25/50/15 | Not required | Not required | $509 |
| Illinois | 25/50/20 | 25/50 UMBI | Not required | $756 |
| Indiana | 25/50/25 | Not required | Not required | $509 |
| Iowa | 20/40/15 | Not required | Not required | $522 |
| Kansas | 25/50/2 | 25/50 UMBI | PIP (structured limits)*** | $662 |
| Kentucky | 25/50/25 | Not required | $10,000 PIP† | $1,304 |
| Louisiana | 15/30/25 | Not required | Not required | $1,255 |
| Maine | 50/100/25 | 50/100 UMBI | $2,000 MedPay | $488 |
| Maryland | 30/60/15 | 30/60 UMBI $15,000 UMPD | $2,500 PIP† | $1,090 |
| Massachusetts | 25/40/5 | 20/40 UMBI | $8,000 PIP | $717 |
| Michigan | 50/100/10 | Not required | $0–unlimited PIP† | $1,414 |
| Minnesota | 30/60/10 | 25/50 UMBI | $40,000 PIP | $805 |
| Mississippi | 25/50/25 | Not required | Not required | $712 |
| Missouri | 25/50/25 | 25/50 UMBI | Not required | $785 |
| Montana | 25/50/20 | Not required | Not required | $536 |
| Nebraska | 25/50/25 | 25/50 UMBI | Not required | $621 |
| Nevada | 25/50/20 | Not required | Not required | $753 |
| New Hampshire* | 25/50/25 | 25/50 UMBI $25,000 UMPD | $1,000 MedPay | $511 |
| New Jersey | 25/50/25 | Not required | $15,000 PIP | $1,120 |
| New Mexico | 25/50/10 | Not required | Not required | $653 |
| New York | 25/50/10 | 25/50 UMBI | $50,000 PIP | $1,459 |
| North Carolina | 30/60/25 | 30/30 UMBI $25,000 UMPD | Not required | $511 |
| North Dakota | 25/50/25 | 25/50 UMBI | $30,000 PIP | $875 |
| Ohio | 25/50/25 | Not required | Not required | $590 |
| Oklahoma | 25/50/25 | Not required | Not required | $721 |
| Oregon | 25/50/20 | 25/50 UMBI | $15,000 PIP | $840 |
| Pennsylvania | 15/30/5 | Not required | $5,000 MedPay** | $635 |
| Rhode Island | 25/50/25 | Not required | Not required | $798 |
| South Carolina | 25/50/25 | 25/50 UMBI $25,000 UMPD | Not required | $1,360 |
| South Dakota | 25/50/25 | 25/50 UMBI | Not required | $639 |
| Tennessee | 25/50/25 | Not required | Not required | $713 |
| Texas | 30/60/25 | Not required | Not required | $1,022 |
| Utah | 25/65/15 | Not required | $3,000 | $804 |
| Vermont | 25/50/10 | 50/100 UMBI $10,000 UMPD | Not required | $434 |
| Virginia | 30/60/30 | 25/50 UMBI $20,000 UMPD | Not required | $733 |
| Washington | 25/50/10 | Not required | Not required | $777 |
| West Virginia | 25/50/25 | 25/50 UMBI $25,000 UMPD | Not required | $704 |
| Wisconsin | 25/50/10 | 25/50 UMPD | Not required | $506 |
| Wyoming | 25/50/20 | 25/50 UMBI | Not required | $342 |
*Required for drivers who choose to use car insurance to prove financial responsibility
** Referred to as First Party Benefit in Pennsylvania
*** Kansas custom PIP limits include: $4,500/person for medical expenses; $900/month for one year for disability/loss of income; $25/day for in-home service for one year; $2,000 for funeral, burial, or cremation expenses; $4,500 for rehabilitation expenses
† PIP required for drivers who choose no-fault coverage in choice-fault states
Is state-minimum coverage enough?
Unfortunately, in most cases, carrying just your state’s required minimum insurance limits could leave you financially vulnerable after a serious car accident.
Most insurance agents recommend you purchase significantly more than the state minimum coverage limits—ideally, 100/300/100, but 50/100/50 is also a useful and affordable choice.
Jerry’s experts analyzed thousands of real customers’ car insurance policies to calculate how much it costs on average to increase liability limits. Here’s what they found from some of the nation’s top providers:
| Provider | 15/30/15 | 25/50/25 | 50/100/50 | 100/300/100 |
|---|---|---|---|---|
| AAA | $175 | $199 | $262 | $299 |
| Allstate | $161 | $193 | $222 | $245 |
| Kemper Preferred | $63 | $149 | $181 | $183 |
| MAPFRE | $89 | $100 | $140 | $203 |
| National General | $116 | $160 | $216 | $227 |
| Nationwide | $117 | $167 | $181 | $194 |
| Progressive | $157 | $158 | $192 | $198 |
| Safeco | $140 | $164 | $179 | $197 |
| State Auto | $108 | $169 | $190 | $210 |
Required coverage for financed and leased vehicles
Most auto lenders require drivers to purchase full-coverage insurance when they buy or lease a new vehicle. Full-coverage insurance includes basic liability insurance with increased limits in addition to:
- Comprehensive coverage: Comprehensive insurance pays out if your vehicle is damaged under certain circumstances, like in a natural disaster, theft, or vandalism incident.
- Collision coverage: Collision insurance pays out if your vehicle is damaged in a collision with a vehicle or object.
Full coverage costs will vary depending on factors like your vehicle’s make and model, your driving record, and sometimes even your credit score. But according to our experts’ analysis, here’s how much you can expect to pay on average for full coverage from some of the top insurance companies:
| Car insurance company | Full coverage | Minimum liability coverage |
|---|---|---|
| AAA | $215 | $105 |
| Allstate | $198 | $85 |
| Farmers | $361 | $80 |
| GEICO | $176 | $127 |
| Kemper/Infinity | $176 | $69 |
| Liberty Mutual | $141 | $87 |
| National General | $201 | $74 |
| Nationwide | $155 | $61 |
| Progressive | $178 | $79 |
| Safeco | $165 | $70 |
| State Farm | $158 | $44 |
| Travelers | $141 | $59 |
Penalties for driving without car insurance
While penalties for driving without car insurance vary by state, here’s what you could expect if you can’t provide proof of insurance:
- Up to $5,000 in fines—even for a single offense
- Driver’s license suspension for up to three years
- SR-22 requirement for 3–5 years in most states
- Registration suspension in some states
- Up to 1 year in jail
- Vehicle impoundment: Optional in some states but mandatory for repeat offenders in North Dakota
If you have violations or coverage lapses on your driving record, you’ll likely have to pay higher premiums once you get your license back.
FAQ
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Is it illegal to drive without car insurance?
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Do I need car insurance to buy a new car?
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How can I find out about my state’s insurance laws?
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information. Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car. Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
