US Car Insurance: State Minimum Requirements Explained

Auto insurance in the United States is regulated at the state level, creating significant variation in minimum coverage requirements. Every state except New Hampshire requires some form of auto insurance. The most common requirement is liability coverage, expressed as split limits such as 25/50/25 — meaning $25,000 per person bodily injury, $50,000 per accident bodily injury, and $25,000 property damage.

California uses 15/30/5 minimums, among the lowest nationally, while Alaska requires 50/100/25, among the highest. Some states mandate additional coverages: Personal Injury Protection (PIP) is required in no-fault states like Florida, Michigan, and New York, covering medical expenses regardless of who caused the accident. Uninsured and underinsured motorist coverage is required in roughly 20 states to protect you when the at-fault driver has insufficient insurance.

Beyond state minimums, most insurance professionals recommend at least 100/300/100 in liability coverage, as minimum limits are often inadequate for serious accidents. Comprehensive and collision coverage protect your own vehicle — comprehensive covers theft, weather damage, and animal strikes, while collision covers accident damage regardless of fault. Gap insurance is recommended for new cars with loans, covering the difference between your car's depreciated value and the remaining loan balance.

Major auto insurers include State Farm, Geico, Progressive, Allstate, and USAA (military families). Usage-based insurance programs from Progressive (Snapshot) and Allstate (Drivewise) offer discounts based on actual driving behaviour.