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Understanding Minimum Car Insurance Requirements





Most states mandate that you carry automobile insurance and have laws outlining the minimum amount of liability coverage you must purchase.

However, those minimum amounts may not be enough, especially if you're in an accident. The cost of a car accident can be much more than the limits required by most states. The Insurance Information Institute recommends that you carry at least $100,000 of bodily injury protection per person and $300,000 per accident (known as 100/300).

Auto insurance minimums

State

Minimums

Alabama

25/50/25

Alaska

50/100/25

Arizona

15/30/10

Arkansas

25/50/25

California

15/30/5

Colorado

25/50/15

Connecticut

20/40/10

Delaware

15/30/10

District of Columbia

25/50/5

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

15/30/25

Maine

50/100/25

Maryland

30/60/15

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

25/50/25

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 

25/50/20

Pennsylvania

15/30/5

Rhode Island

25/50/25

South Carolina

25/50/25

South Dakota

25/50/25

Tennessee

25/50/15

Texas

30/60/25

Utah 

25/65/15

Vermont

25/50/10

Virginia

25/50/20

Washington 

25/50/10

West Virginia 

20/40/10

Wisconsin

25/50/10

Wyoming

25/50/20

What do those three auto liability insurance numbers mean?

Perhaps you've wondered about the three numbers that are part of the auto liability insurance that you bought.

  1. The first number is the bodily injury liability maximum coverage for one individual who's injured in an auto accident.
  2. The second number is the maximum amount of bodily injury liability coverage per accident.
  3. The third number represents the maximum amount of property damage liability, and it's per vehicle.

For example, if you live in North Carolina, the numbers are 30/60/25, which means the minimum liability limits are $30,000 for injuries to one person, $60,000 for all injuries and $25,000 for property damage in one accident. In Wyoming, the figures are 25/50/20, which means that the minimum liability limits are $25,000 for injuries to one person, $50,000 for all injuries and $20,000 for property damage per vehicle in an accident. And if you reside in Michigan, the numbers are 20/40/10, meaning that the minimum liability limits are $20,000 for injuries to one person, $40,000 for all injuries and $10,000 for property damage per vehicle in an accident. (See: " 5 misunderstood car insurance policy terms.")

The typical minimum amount of auto liability insurance coverage is 20/40/15, says Robert Passmore, senior director, personal lines policy, Property Casualty Insurers Association of America (PCIAA). States have held these numbers pretty stable over the years, says Passmore. "Most people carry more than the minimums," he notes.

Understanding auto insurance liability coverage across state lines

What happens if you hold the minimum amount of automobile insurance coverage required in your state and you're involved in an accident in another state that requires higher minimum coverage? Will your auto policy's coverage automatically increase to meet the other state's minimum coverage requirements?

For example, say you live in Ohio and hold the minimum amount of coverage, which is 12.5/25/7.5/ (This means that the minimum liability limits in this state are $12,500 for injuries to one person, $25,000 for all injuries incurred and $7,500 for property damage for one vehicle in an accident.) What happens if you then travel to Maine for a vacation (where the limits are 50/100/25) and are involved in an accident that requires higher minimum coverage?

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