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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