When to Buy More Than Minimum Auto Insurance in 2024 (Coverage Advice)
If you are still determining when to buy more than minimum coverage, most drivers should buy more unless they have an older vehicle. In most cases, saving with a state minimum auto liability insurance policy isn't the best idea. Full coverage insurance rates start at $59/mo.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Dec 5, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Unsure when to buy more than minimum auto insurance? Most states require a minimum amount of car insurance, but it’s not always the best coverage option. Most state requirements only include liability insurance. Finding the cheapest liability-only auto insurance is easy enough, but it leaves your vehicle without protection.
You should buy more than minimum auto insurance if you own an expensive car you can’t afford to replace. It’ll cost you more in premiums, but it can save you a significant amount of money in the long run.
However, there might be times when buying more than minimum coverage is not necessary. Read on as we explain why saving money with a state minimum auto liability insurance policy generally isn‘t the best idea. Then, enter your ZIP code into our free comparison tool above to see how much you might pay for coverage.
When to Buy More Than Minimum Auto Insurance
While you need to carry basic types of auto insurance coverage like liability and uninsured coverage, it is highly recommended to purchase additional coverage. Even if your vehicle is not financed, it is often smart to purchase collision and comprehensive coverage.
Collision insurance coverage will help to cover damage to your own vehicle, even if the accident was your fault. This includes colliding with another vehicle and hitting another object, flipping your car, or hitting a pothole. Collision coverage is especially recommended if you have a teenage driver, as the National Highway Traffic Safety Administration reports that a majority of crashes are caused by drivers aged 15 to 19.
Comprehensive covers damage caused by anything not related to a collision. That includes damage from fires, floods, animals, theft, and vandalism.
If it is not required in your state, uninsured motorist coverage is a smart thing to purchase. Although most states require insurance, nearly 15% of American drivers don’t carry it. The best uninsured and underinsured motorist (UM/UIM) coverage can save you thousands if a driver hits you without adequate coverage. It also covers you in hit-and-run accidents, where the other party leaves the scene of the accident.
Medical payments or personal injury protection insurance pays medical expenses for you and your passengers after an accident. This is affordable coverage to purchase, as finding the best auto insurance companies for cheap personal injury protection insurance or medical payment coverage is usually easy.
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Understanding State Minimum Auto Insurance Requirements
States have put car insurance requirements in place to protect you and your assets. If you’re in an accident with another driver, one or both of you must be responsible for the damages caused to vehicles and people.
If you caused the accident and don’t have insurance coverage, you will have to pay for everything out of your own pocket. If the other party caused the accident and doesn’t have insurance and also doesn’t have enough to cover the expenses, you would ultimately be responsible for payment.
These days, the damage caused by accidents can be huge. The cost to repair or replace a car is one thing. Any medical expense can add to an already big headache. They can quickly wipe out your savings and assets. You can sue the other party for damages, but this is costly and takes a lot of time.
States have started mandating insurance coverage to help protect people from financial ruin. In fact, the majority of states have this in place. So that you don’t have to comb through the web searching for how much car insurance do I need on Reddit or how much car insurance do I need Dave Ramsey, we’ve listed out state requirements. See below what is required in each state.
Minimum Auto Insurance Coverage Requirements by State
| U.S. States | Type of Insurance Coverage Required | Minimum Liability Coverage Requirements |
|---|---|---|
| AK | BI & PD Liab | 50/100/25 |
| AL | BI & PD Liab | 25/50/25 |
| AR | BI & PD Liab, PIP | 25/50/25 |
| AZ | BI & PD Liab | 15/30/10 |
| CA | BI & PD Liab | 15/30/5 |
| CO | BI & PD Liab | 25/50/15 |
| CT | BI & PD Liab, UM, UIM | 25/50/20 |
| DC | BI & PD Liab, UM | 25/50/10 |
| DE | BI & PD Liab, PIP | 25/50/10 |
| FL | PD Liab, PIP | 10/20/10 |
| GA | BI & PD Liab | 25/50/25 |
| HI | BI & PD Liab, PIP | 20/40/10 |
| IA | BI & PD Liab | 20/40/15 |
| ID | BI & PD Liab | 25/50/15 |
| IL | BI & PD Liab, UM, UIM | 25/50/20 |
| IN | BI & PD Liab | 25/50/25 |
| KS | BI & PD Liab, PIP | 25/50/25 |
| KY | BI & PD Liab, PIP, UM, UIM | 25/50/25 |
| LA | BI & PD Liab | 15/30/25 |
| MA | BI & PD Liab, PIP | 20/40/5 |
| MD | BI & PD Liab, PIP, UM, UIM | 30/60/15 |
| ME | BI & PD Liab, UM, UIM, Medpay | 50/100/25 |
| MI | BI & PD Liab, PIP | 20/40/10 |
| MN | BI & PD Liab, PIP, UM, UIM | 30/60/10 |
| MO | BI & PD Liab, UM | 25/50/25 |
| MS | BI & PD Liab | 25/50/25 |
| MT | BI & PD Liab | 25/50/20 |
| NC | BI & PD Liab, UM, UIM | 30/60/25 |
| ND | BI & PD Liab, PIP, UM, UIM | 25/50/25 |
| NE | BI & PD Liab, UM, UIM | 25/50/25 |
| NH | FR only | 25/50/25 |
| NJ | BI & PD Liab, PIP, UM, UIM | 15/30/5 |
| NM | BI & PD Liab | 25/50/10 |
| NV | BI & PD Liab | 25/50/20 |
| NY | BI & PD Liab, PIP, UM, UIM | 25/50/10 |
| OH | BI & PD Liab | 25/50/25 |
| OK | BI & PD Liab | 25/50/25 |
| OR | BI & PD Liab, PIP, UM, UIM | 25/50/20 |
| PA | BI & PD Liab, PIP | 15/30/5 |
| RI | BI & PD Liab | 25/50/25 |
| SC | BI & PD Liab, UM, UIM | 25/50/25 |
| SD | BI & PD Liab, UM, UIM | 25/50/25 |
| TN | BI & PD Liab | 25/50/15 |
| TX | BI & PD Liab, PIP | 30/60/25 |
| UT | BI & PD Liab, PIP | 25/65/15 |
| VA | BI & PD Liab (9), UM, UIM | 25/50/20 |
| VT | BI & PD Liab, UM, UIM | 25/50/10 |
| WA | BI & PD Liab | 25/50/10 |
| WI | BI & PD Liab, UM, Medpay | 25/50/10 |
| WV | BI & PD Liab, UM, UIM | 25/50/25 |
| WY | BI & PD Liab | 25/50/20 |
Although most states require insurance, if a state does not require insurance specifically, it still requires proof of financial responsibility.
According to the Insurance Information Institute, all states have laws dealing with financial responsibility.
If you can’t prove that you have enough assets to cover accident claims, then you need to purchase the minimum insurance.
There are a number of ways to find out the minimum auto insurance requirements by state, if any. If you are currently insured, your agent or insurance company should have that information. To find out for sure, you can contact your state insurance department.
Minimum Types of Auto Insurance Coverage
The minimum car insurance requirements can vary slightly depending on the state in which you live. Liability is one type of coverage that pretty much every state requires. Liability helps to cover damages that occur when the accident is your fault, and it only covers damage to the other party.
There are two kinds of liability: bodily injury, and property damage. Bodily injury refers to damages to the bodies of the other driver and passengers and covers medical bills. Property damage refers to the other vehicle and what it costs to repair or replace it.Brandon Frady Licensed Insurance Producer
In addition to liability coverage, some states require uninsured motorist coverage. Others require you to have some sort of personal injury protection.
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States are not the only ones who can require you to carry a certain amount of car insurance. If you lease your car or have a finance agreement for it, many lenders will require you to carry insurance to protect their investment.
With a leased or financed car, you may be required to carry both collision and comprehensive coverage (Read More: Is full coverage auto insurance required to lease a car?). These ensure that your vehicle is covered under certain circumstances.
Consider Raising Your Auto Insurance Liability Limits
Another thing to be aware of in terms of minimum insurance coverage is the limit amount of your liability insurance. This varies from state to state and is listed as three numbers, such as 20/40/10. This means that the insurance company will pay the most for bodily injury, which is $20,000 for each person, $40,000 max for each accident, and $10,000 for property damage.
In that instance, if there were four people in the car, only $40,000 would be allotted for medical expenses for all of them, which is not very much when you consider how high medical costs are these days. This explains why saving money with a state minimum auto liability insurance policy generally isn’t the best idea.
Other examples of limits in other states include 25/50/20, 15/30/5, and 50/100/55.
Once those limits are reached, you are responsible for the rest.
This is why the Insurance Information Institute and others in the insurance industry recommend that you carry bodily injury protection at a minimum of $100,000 per person and $300,000 total for each accident.
Although you can increase the limits of your liability insurance, you are unable to increase the limits of your comprehensive or collision auto insurance. These limits are based on the actual value of your car and how much repairs would cost.
This means that at some point, you need to decide whether it is worth paying a premium every month for this coverage, especially if you have high auto insurance deductibles. If you are paying a $1,000 deductible and your car is worth less than that, it would be a smart decision to stop paying for that coverage every month.
Cost of Auto Insurance Coverage by State
Now that you know when you should carry more than minimum auto insurance, take a look at minimum versus full coverage insurance costs by state below.
Auto Insurance Monthly Rates by State & Coverage Type
| State | Liability | Collision | Comprehensive | Full Coverage |
|---|---|---|---|---|
| Alabama | $35 | $27 | $13 | $75 |
| Alaska | $47 | $30 | $12 | $89 |
| Arizona | $45 | $23 | $16 | $84 |
| Arkansas | $34 | $27 | $16 | $78 |
| California | $42 | $34 | $8 | $84 |
| Colorado | $45 | $24 | $15 | $85 |
| Connecticut | $57 | $31 | $11 | $99 |
| Delaware | $67 | $27 | $10 | $104 |
| Florida | $74 | $24 | $10 | $108 |
| Georgia | $50 | $28 | $13 | $91 |
| Hawaii | $39 | $26 | $9 | $73 |
| Idaho | $31 | $19 | $10 | $59 |
| Illinois | $38 | $26 | $11 | $75 |
| Indiana | $33 | $21 | $10 | $64 |
| Iowa | $26 | $19 | $16 | $60 |
| Kansas | $30 | $22 | $20 | $73 |
| Kentucky | $45 | $23 | $12 | $80 |
| Louisiana | $68 | $35 | $18 | $121 |
| Maine | $29 | $22 | $8 | $60 |
| Maryland | $53 | $30 | $13 | $95 |
| Massachusetts | $51 | $33 | $11 | $95 |
| Michigan | $68 | $35 | $13 | $116 |
| Minnesota | $38 | $20 | $15 | $73 |
| Mississippi | $39 | $27 | $18 | $84 |
| Missouri | $36 | $23 | $15 | $75 |
| Montana | $33 | $22 | $19 | $74 |
| Nebraska | $31 | $20 | $19 | $71 |
| Nevada | $60 | $26 | $10 | $95 |
| New Hampshire | $34 | $25 | $9 | $68 |
| New Jersey | $75 | $32 | $11 | $117 |
| New Mexico | $43 | $23 | $15 | $80 |
| New York | $69 | $33 | $14 | $115 |
| North Carolina | $30 | $25 | $11 | $65 |
| North Dakota | $25 | $21 | $20 | $65 |
| Ohio | $34 | $23 | $10 | $67 |
| Oklahoma | $39 | $27 | $19 | $85 |
| Oregon | $51 | $19 | $8 | $78 |
| Pennsylvania | $42 | $28 | $12 | $82 |
| Rhode Island | $66 | $35 | $11 | $111 |
| South Carolina | $46 | $22 | $15 | $84 |
| South Dakota | $26 | $18 | $22 | $65 |
| Tennessee | $36 | $26 | $12 | $74 |
| Texas | $46 | $32 | $17 | $95 |
| Utah | $43 | $22 | $9 | $74 |
| Vermont | $30 | $25 | $11 | $66 |
| Virginia | $36 | $24 | $12 | $72 |
| Washington | $51 | $22 | $9 | $82 |
| Washington, D.C. | $55 | $39 | $19 | $114 |
| West Virginia | $42 | $28 | $17 | $87 |
| Wisconsin | $32 | $19 | $12 | $62 |
| Wyoming | $28 | $23 | $21 | $73 |
Of course, these are just averages. Your rates may be higher or lower depending on your driving record, credit score, age, and other relative factors.
Learn More: Factors That Affect Auto Insurance RatesÂ
For example, if you are a high-risk driver in Pennsylvania, you may have to purchase PA assigned risk plan auto insurance, which is much more expensive and will make it hard to get the cheapest car insurance in PA.
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Finding the Right Amount of Auto Insurance Coverage Today
If you only want to carry the minimum insurance requirements because of financial reasons, you would probably be making a smarter choice by carrying more coverage and saving in other ways. Wondering how to make car insurance go down? One thing that affects your insurance premium is your deductible.
The higher your deductible is, the lower your premium will be. Driving safe is one of the best ways to keep your premium low.
If your driving history contains a number of accidents and other traffic violations, work on keeping your record clean for the next three years and you will notice your rate decrease. Your credit score also affects your car insurance rate, believe it or not. Because insurance companies associate poor credit with poor driving habits, it is important to work on increasing your credit score.
To lower auto insurance rates, make sure to ask your insurance agent if there are any discounts for which you are eligible. You can also sit down with your agent and evaluate your policy. You may find that you are paying for extra things that you don’t need.Dani Best Licensed Insurance Producer
If your car is old, for example, maybe you will decide to cancel your comprehensive auto insurance coverage. Perhaps you are paying for one of the best roadside assistance plans , but you also have AAA, and you don’t need both.
Finding affordable insurance doesn’t have to be a challenge, no matter how much coverage you want to purchase. The best way to find low prices is to compare auto insurance rates, which you can do by entering your ZIP code in our free comparison tool.
Frequently Asked Questions
Is buying more than the minimum coverage requirements necessary?
While you only need to carry minimum requirements by law, a good recommendation is bodily injury protection of $100,000 per person and $300,000 total.
What types of auto insurance coverage are usually required?
The most common type of required coverage is liability insurance, which covers damages that occur when the accident is your fault and only covers damage to the other party. Some states also require uninsured motorist coverage or personal injury protection.
Is it worth it to have full coverage on my car?
There are multiple reasons why saving money with a state minimum auto liability insurance policy generally isn‘t the best idea. If your vehicle is expensive and you can’t afford to pay for repairs out of pocket, you should carry more than the minimum.
Since minimum coverage insurance doesn’t include protection for you and your vehicle, you should carry full coverage car insurance to pay for your vehicle damages and medical bills (Read More: What are the recommended auto insurance coverage levels?).
Why do states require car insurance?
States have put car insurance requirements in place to protect you and your assets. If you are in an accident with another driver, one or both of you must be responsible for the damages caused to both the vehicles and the people. Insurance coverage helps protect you from financial ruin in such situations.
How can I find out the minimum insurance requirements in my state?
You can contact your insurance agent or insurance company to find out the minimum insurance requirements in your state. Alternatively, you can contact your state insurance department, which can provide you with the necessary information.
Should car insurance go down as car gets older?
Generally, older cars cost less to insure, but rates depend on various other factors too (Learn More: Cheap Auto Insurance for Older Vehicles).
Should I purchase additional coverage beyond the minimum requirements?
It is highly recommended that additional coverage, such as collision and comprehensive coverage, be purchased. Collision coverage helps cover damage to your own vehicle, even if the accident was your fault. Comprehensive coverage covers damage caused by non-collision incidents like theft, fire, or natural disasters.
When should I lower my car insurance coverage?
Wondering at what point is full coverage not worth it? You can drop full coverage if your annual premium costs more than 10% of your vehicle’s value.
Why would insurance most likely be cheaper for a 35-year-old rather than a 25-year-old?
35-year-old drivers have more experience, and as long as their driving record is clean, they will have much cheaper rates than 25-year-olds (Read More: Auto Insurance Rates by Age).
Why would someone choose to pay for more than the minimum amount of insurance coverage?
Although it costs more, full coverage insurance offers much better protection to both driver and vehicle, as we mentioned earlier when we explained why saving money with a state minimum auto liability insurance policy generally isn’t the best idea.
The best full coverage car insurance pays for your vehicle repairs after an accident, no matter who was at fault. It can also cover medical bills for you and your passengers in case you’re injured. Shop for affordable full coverage car insurance quotes today with our free tool.
When to drop collision coverage from Consumer Report?
The advice from Consumer Report is to drop collision coverage on older vehicles if your payments equal 10% or more of your car’s value.
However, in other cases, the recommended car insurance coverage by Consumer Reports is a full coverage policy with collision and comprehensive insurance. You can always use a free “how much car insurance do I need calculator” to determine what coverages you should carry.
Is gap insurance worth it if you have full coverage?
Guaranteed auto protection (gap) insurance is worth it if you have a new vehicle. Older vehicles do not need gap coverage.
At what point is car insurance not worth it?
Because you are required to carry auto insurance in most states to drive legally, car insurance is always worth it.
What is the purpose of minimum insurance coverage?
Minimum liability insurance is the minimum amount of coverage you can purchase in your state. The purpose of minimum coverage is to protect other drivers, as minimum coverage insurance pays for damage and injuries you cause in an at-fault accident.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.