Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Mar 14, 2022

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Key Takeaways

  • Each state carries a minimum coverage limit
  • Liability insurance includes bodily injury and property damage
  • Some states include personal injury protection within the state minimum requirements

Did you know that liability car insurance carries the minimum insurance requirements? Although state minimum auto insurance regulations vary for each state, your car insurance requirements are covered under liability insurance.

But how do minimum requirements vary? What is the minimum amount of liability insurance coverage required in California? Don’t worry — we’re here to answer your questions and more.

Our guide discloses the state minimum insurance requirements by state, reveals what each coverage does under liability, and explains how to read coverage levels.

Continue reading to learn about each state’s minimum car insurance requirements in America.

What is the required state minimum car insurance in each state?

Liability insurance is the minimum requirement for most states except New Hampshire and Virginia. New Hampshire and Virginia don’t require the minimum requisites, but the insurance companies in those states may recommend specific limits.

But what about states like California, New Jersey, and Texas? Let’s examine the minimum auto insurance requirements for each state.

Minimum Liability Auto Insurance Requirements by State
STATEINSURANCE REQUIRED MINIMUM LIABILITY LIMITS
ALBI & PD Liab25/50/25
AKBI & PD Liab50/100/25
AZBI & PD Liab15/30/10
ARBI & PD Liab, PIP25/50/25
CABI & PD Liab15/30/5
COBI & PD Liab25/50/15
CTBI & PD Liab, UM, UIM25/50/20
DEBI & PD Liab, PIP25/50/10
DCBI & PD Liab, UM25/50/10
FLPD Liab, PIP10/20/10
GABI & PD Liab25/50/25
HIBI & PD Liab, PIP20/40/10
IDBI & PD Liab25/50/15
ILBI & PD Liab, UM, UIM25/50/20
INBI & PD Liab25/50/25
IABI & PD Liab20/40/15
KSBI & PD Liab, PIP25/50/25
KYBI & PD Liab, PIP, UM, UIM25/50/25
LABI & PD Liab15/30/25
MEBI & PD Liab, UM, UIM, Medpay50/100/25
MDBI & PD Liab, PIP, UM, UIM30/60/15
MABI & PD Liab, PIP20/40/5
MIBI & PD Liab, PIP20/40/10
MNBI & PD Liab, PIP, UM, UIM30/60/10
MSBI & PD Liab25/50/25
MOBI & PD Liab, UM25/50/25
MTBI & PD Liab25/50/20
NEBI & PD Liab, UM, UIM25/50/25
NVBI & PD Liab25/50/20
NHFR only25/50/25
NJBI & PD Liab, PIP, UM, UIM15/30/5
NMBI & PD Liab25/50/10
NYBI & PD Liab, PIP, UM, UIM25/50/10
NCBI & PD Liab, UM, UIM30/60/25
NDBI & PD Liab, PIP, UM, UIM25/50/25
OHBI & PD Liab25/50/25
OKBI & PD Liab25/50/25
ORBI & PD Liab, PIP, UM, UIM25/50/20
PABI & PD Liab, PIP15/30/5
RIBI & PD Liab25/50/25
SCBI & PD Liab, UM, UIM25/50/25
SDBI & PD Liab, UM, UIM25/50/25
TNBI & PD Liab25/50/15
TXBI & PD Liab, PIP30/60/25
UTBI & PD Liab, PIP25/65/15
VTBI & PD Liab, UM, UIM25/50/10
VABI & PD Liab, UM, UIM25/50/20
WABI & PD Liab25/50/10
WVBI & PD Liab, UM, UIM25/50/25
WIBI & PD Liab, UM, Medpay25/50/10
WYBI & PD Liab25/50/20
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The meaning of state minimum car insurance varies depending on your location. Some states only offer BI and PD coverage.

But what does it all mean? BI is short for bodily injury liability, and PD is a quicker way of saying property damage liability.

Meanwhile, PIP stands for personal injury protection, and MedPay refers to medical payments coverage. Finally, UM/UIM is an alternative way of saying uninsured/underinsured motorist coverage.

The numbers listed in the last column are the coverage limits. Insurance companies abbreviate these limits for easier readability.

What is the minimum amount of liability insurance required for a commercial motor vehicle?

Commercial cars are under the same standard as personal vehicles. However, commercial auto insurance companies will recommend higher limits to prevent your business from taking significant losses with insufficient coverage limits.

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How do you read coverage limits?

Car insurance companies shorten coverage limits to a series of numbers, such as 25/50/25. These numbers indicate:

  • $25,000 for bodily injury of one person per accident
  • $50,000 for bodily injury of multiple people per accident
  • $25,000 for property damage per accident

Instead of writing that out each time, you’ll see limits like this for liability insurance. But if you have UM/UIM coverage attached, you’ll have more limits.

Liability insurance provides coverage for another driver when you’re at fault in a car accident.

UM/UIM coverage has its own limits because it usually covers you when a driver either doesn’t have insurance or lacks sufficient coverage.

What does liability car insurance cover?

Liability auto insurance has different coverages for each state. For example, Kentucky car insurance requirements have five coverages in its liability requirements, but Mississippi has two. In addition, Kentucky drivers don’t pay extra for owning more insurance coverages, but Mississippi drivers must pay more if they necessitate more options.

But what does each insurance coverage pay for under an insurance policy? Let’s find out together.

What is bodily injury liability?

Bodily injury (BI) liability covers the cost of medical and hospital bills of another driver and their passengers when you’re at fault in an accident. You can’t obtain coverage from your own liability insurance policy.

But if you’re not at fault in an auto accident, the other driver’s liability coverage pays for you and your passengers’ medical and hospital bills.

What is property damage liability?

Property damage (PD) liability pays for damage expenses on a driver’s vehicle that isn’t at fault in a car accident. Your auto insurance company won’t cover damage to your vehicle if you’re at fault in an accident unless you have collision insurance.

What is uninsured/underinsured motorist coverage?

Uninsured/underinsured motorist (UM/UIM) coverage pays for hospital and medical bills when you’re injured by a driver who either doesn’t have insurance or lacks sufficient funds on their coverage limits to pay for your injuries.

UM/UIM coverage also covers property damage under the same circumstances. If a hit-and-run driver injures you, the UM portion could compensate the cost of medical bills.

What is personal injury protection?

Personal injury protection (PIP) covers medical bills, lost wages, child care expenses, and other essential costs even if you’re at fault in an accident. Your PIP insurance could even pay for the cost of funeral expenses.

What is MedPay?

Medical payments coverage (MedPay) covers expenses such as X-rays, co-payments, and other health-related items. MedPay limits can reach up to $5,000, and it’s an excellent supplement for health insurance.

How much is state minimum car insurance?

Since the state minimum is liability coverage, we’ll show you the latest estimates for liability-only auto insurance in each state. Use the search box in the upper right hand corner to quickly locate your home state.

Average Monthly Liability Rates by State
StatesAverage Monthly Liability Rates
Alabama$37
Alaska$47
Arizona$48
Arkansas$36
California$45
Colorado$49
Connecticut$59
Delaware$69
District of Columbia$58
Florida$76
Georgia$55
Hawaii$39
Idaho$32
Illinois$40
Indiana$34
Iowa$27
Kansas$32
Kentucky$47
Louisiana$73
Maine$30
Maryland$55
Massachusetts$52
Michigan$72
Minnesota$39
Mississippi$41
Missouri$38
Montana$34
Nebraska$33
Nevada$64
New Hampshire$35
New Jersey$76
New Mexico$44
New York$71
North Carolina$31
North Dakota$25
Ohio$35
Oklahoma$40
Oregon$53
Pennsylvania$43
Rhode Island$68
South Carolina$50
South Dakota$26
Tennessee$37
Texas$49
Utah$45
Vermont$30
Virginia$38
Washington$53
West Virginia$43
Wisconsin$33
Wyoming$29
*National Average*$48
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The national average for liability insurance is approximately $50 a month, but your insurance rates could be different. Several factors determine whether or not you qualify for cheap car insurance quotes.

As you can see from the table, your location is one of the most significant factors that impacts auto insurance.

Should you get full coverage car insurance?

If you’re still making payments on your vehicle, you’ll need full coverage insurance. Lenders and dealerships want to expand protections on their investments, and full coverage on your insurance policy is a way of exhibiting that.

In addition to protecting your investment, full coverage insurance can prevent complicated situations from multiple perspectives.

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State Minimum Car Insurance: The Bottom Line

The state minimum for auto insurance is different for each state in America. But some states have similar coverage limits and coverage attached to their mandates.

New Hampshire and Virginia are the only states that don’t have mandatory car insurance requirements, but we recommend acquiring insurance if you plan to drive in those states.

If you have a flexible budget, consider raising your coverage level to 50/100/50 and adding full coverage to your auto insurance policy. This provides you more options to cover complex situations.