Do all vehicles have set auto insurance requirements? (2024 Coverage Facts)
All vehicles have auto insurance requirements set by the state where the vehicle owner resides. Driving without your state's set vehicle requirements is illegal in 48 out of 50 states. Most states require vehicles to carry liability auto insurance, with costs starting at an average of $25/mo.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Oct 25, 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: Oct 25, 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.
On This Page
All vehicles have set auto insurance requirements if owners are driving the vehicles. Mandatory requirements will vary from state to state, but the minimum auto insurance requirements are the same for all cars and all drivers within a state.
Our guide goes over the set requirements you’ll have on your vehicle, as well as how to find the best deal on required coverage for your vehicle at the cheapest auto insurance companies.
Enter your ZIP code into our free car insurance comparison tool to see quotes for different levels of coverage.
- Knowing the minimum coverage and finding the right coverage can be confusing
- Virtually all states require drivers to carry liability insurance
- Different states have specific laws regarding coverage
State Set Auto Insurance Requirements for Vehicles
In most states, drivers are allowed to choose the types of add-on coverage they wish to purchase. Certain coverages, however, are mandatory. The majority of states require drivers to carry liability insurance.
- Liability: The minimum policy limits vary by state, and in some jurisdictions, drivers with a history of driving while intoxicated must carry higher limits. Liability is composed of bodily injury and property damage protection, but it does not pay for damages the policyholder suffers.
- Uninsured/Underinsured Motorist: Despite the laws, some drivers fail even to purchase cheap auto insurance or purchase policies with limits that are insufficient to cover a serious accident. This type of coverage pays the policyholder for damages caused by an uninsured or underinsured motorist.
- Personal Injury Protection: Personal injury protection pays the medical bills for the policyholder and his passengers, up to the policy limits, regardless of who is at fault for the accident. The coverage is not offered in all states; it is mandatory in some but optional in most.
Liability is the most important coverage that states require. Liability insurance is typically represented by three numbers, such as “20/40/15,” which state the coverage amounts in thousands.
The first number is the amount the policy will pay for bodily injury to one person injured in an accident for which the policyholder is at fault, the second number is the amount for all people injured in the same accident, and the third number is the amount of property damage protection.
Many people ask why auto insurance minimums vary so much per state, but it is important to know the coverage levels for your state. Take a look at the car insurance laws by state for coverage.
Minimum Auto Insurance Coverage Requirements by State
| States | Type of Coverage | Minimum Limits |
|---|---|---|
| Alabama | BI & PD Liab | 25/50/25 |
| Alaska | BI & PD Liab | 50/100/25 |
| Arizona | BI & PD Liab | 15/30/10 |
| Arkansas | BI & PD Liab, PIP | 25/50/25 |
| California | BI & PD Liab | 15/30/5 |
| Colorado | BI & PD Liab | 25/50/15 |
| Connecticut | BI & PD Liab, UM, UIM | 25/50/20 |
| Delaware | BI & PD Liab, PIP | 25/50/10 |
| Washington D.C. | BI & PD Liab, UM | 25/50/10 |
| Florida | PD Liab, PIP | 10/20/10 |
| Georgia | BI & PD Liab | 25/50/25 |
| Hawaii | BI & PD Liab, PIP | 20/40/10 |
| Idaho | BI & PD Liab | 25/50/15 |
| Illinois | BI & PD Liab, UM, UIM | 25/50/20 |
| Indiana | BI & PD Liab | 25/50/25 |
| Iowa | BI & PD Liab | 20/40/15 |
| Kansas | BI & PD Liab, PIP | 25/50/25 |
| Kentucky | BI & PD Liab, PIP, UM, UIM | 25/50/25 |
| Louisiana | BI & PD Liab | 15/30/25 |
| Maine | BI & PD Liab, UM, UIM, Medpay | 50/100/25 |
| Maryland | BI & PD Liab, PIP, UM, UIM | 30/60/15 |
| Massachusetts | BI & PD Liab, PIP | 20/40/5 |
| Michigan | BI & PD Liab, PIP | 20/40/10 |
| Minnesota | BI & PD Liab, PIP, UM, UIM | 30/60/10 |
| Mississippi | BI & PD Liab | 25/50/25 |
| Missouri | BI & PD Liab, UM | 25/50/25 |
| Montana | BI & PD Liab | 25/50/20 |
| Nebraska | BI & PD Liab, UM, UIM | 25/50/25 |
| Nevada | BI & PD Liab | 25/50/20 |
| New Hampshire | FR only | 25/50/25 |
| New Jersey | BI & PD Liab, PIP, UM, UIM | 15/30/5 |
| New Mexico | BI & PD Liab | 25/50/10 |
| New York | BI & PD Liab, PIP, UM, UIM | 25/50/10 |
| North Carolina | BI & PD Liab, UM, UIM | 30/60/25 |
| North Dakota | BI & PD Liab, PIP, UM, UIM | 25/50/25 |
| Ohio | BI & PD Liab | 25/50/25 |
| Oklahoma | BI & PD Liab | 25/50/25 |
| Oregon | BI & PD Liab, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD Liab, PIP | 15/30/5 |
| Rhode Island | BI & PD Liab | 25/50/25 |
| South Carolina | BI & PD Liab, UM, UIM | 25/50/25 |
| South Dakota | BI & PD Liab, UM, UIM | 25/50/25 |
| Tennessee | BI & PD Liab | 25/50/15 |
| Texas | BI & PD Liab, PIP | 30/60/25 |
| Utah | BI & PD Liab, PIP | 25/65/15 |
| Vermont | BI & PD Liab, UM, UIM | 25/50/10 |
| Virgina | BI & PD Liab, UM, UIM | 25/50/20 |
| Washington | BI & PD Liab | 25/50/10 |
| West Virginia | BI & PD Liab, UM, UIM | 25/50/25 |
| Wisconsin | BI & PD Liab, UM, Medpay | 25/50/10 |
| Wyoming | BI & PD Liab | 25/50/20 |
Vehicle owners typically need to provide proof of auto insurance coverage to register their cars in their state. In some states, if the Department of Motor Vehicles receives notice that a policy has been canceled, it may revoke the registration or suspend the owner’s license.
Drivers caught driving without mandatory auto insurance in their state may also face fines, loss of license, jail, and more (Learn More: Is not having auto insurance a criminal offense?).
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Lender Set Auto Insurance Requirements for Vehicles
If you own a new vehicle, there are also set car insurance requirements by your lender. Other coverages that lenders will require vehicle owners to carry include:
- Collision: If the covered vehicle is damaged in a collision, this is the type of coverage that will pay for repairs. Should the vehicle be damaged to the extent that repairs will cost more than the depreciated value of the car, the insurance company will make a lump-sum payment.
- Comprehensive: This coverage pays for damages or losses to the covered vehicle that are not the result of a collision. Vandalism, hail damage, and theft are examples of losses that would fall under comprehensive coverage.
See the cost of minimum liability coverage versus full coverage (which includes collision and comprehensive coverage) by state below.
Auto Insurance Monthly Rates by State & Coverage Level
| State | Minimum Coverage | Full Coverage |
|---|---|---|
| Alabama | $33 | $72 |
| Alaska | $45 | $86 |
| Arizona | $42 | $81 |
| Arkansas | $33 | $76 |
| California | $41 | $82 |
| Colorado | $43 | $82 |
| Connecticut | $54 | $96 |
| Delaware | $67 | $103 |
| Florida | $71 | $105 |
| Georgia | $46 | $87 |
| Hawaii | $38 | $73 |
| Idaho | $29 | $57 |
| Illinois | $37 | $74 |
| Indiana | $32 | $63 |
| Iowa | $25 | $59 |
| Kansas | $30 | $72 |
| Kentucky | $44 | $78 |
| Louisiana | $65 | $117 |
| Maine | $28 | $59 |
| Maryland | $51 | $93 |
| Massachusetts | $51 | $94 |
| Michigan | $66 | $114 |
| Minnesota | $38 | $73 |
| Mississippi | $38 | $83 |
| Missouri | $35 | $73 |
| Montana | $32 | $72 |
| Nebraska | $30 | $69 |
| Nevada | $57 | $92 |
| New Hampshire | $33 | $68 |
| New Jersey | $72 | $115 |
| New Mexico | $41 | $78 |
| New York | $67 | $113 |
| North Carolina | $30 | $66 |
| North Dakota | $25 | $64 |
| Ohio | $33 | $66 |
| Oklahoma | $38 | $84 |
| Oregon | $49 | $75 |
| Pennsylvania | $42 | $81 |
| Rhode Island | $63 | $109 |
| South Carolina | $44 | $81 |
| South Dakota | $25 | $64 |
| Tennessee | $34 | $73 |
| Texas | $44 | $92 |
| Utah | $41 | $73 |
| Vermont | $29 | $64 |
| Virginia | $35 | $70 |
| Washington | $50 | $81 |
| Washington, D.C. | $52 | $111 |
| West Virginia | $41 | $85 |
| Wisconsin | $31 | $61 |
| Wyoming | $27 | $71 |
| U.S. Average | $45 | $84 |
Collision and comprehensive coverage are important coverages for all vehicle types, not just new cars (Read More: Collision vs. Comprehensive Auto Insurance Explained). If you can afford full coverage, it is recommended.
Optional Auto Insurance Coverage
Add-on coverages are extras offered by auto insurance companies that states or lenders do not require. Common add-on coverage includes:
- Guaranteed Auto Protection (Gap): Because collision and comprehensive payments are based on the vehicle’s current value, some lenders may find that a payment for a total loss is insufficient to pay off the outstanding loan. Gap coverage pays the difference between the remaining loan amount and the vehicle’s depreciated value.
- Modified Car: Covers modifications you make to your vehicle, such as a new stereo or paint job.
- Roadside Assistance: Assists drivers who break down on the road and need help with small repairs or a tow.
Adding on extras will raise the price of auto insurance but can be beneficial to drivers who want complete protection on the road.
Finding the Best Prices on Auto Insurance
Although it is true that all cars need the same liability coverage and need to be covered against loss in amounts that reflect the value of the car, insurance rates can vary widely.
Each state has an insurance board or commissioner that regulates insurance companies, but the range in which the rates must fall is quite large. Obtaining online quotes from a number of different companies is the easiest way to find which company offers the best rate.Dani Best Licensed Insurance Producer
Not every company is the least expensive for all drivers, so just because the owner of an expensive sports car finds a great rate at one company, it is not always true that the owner of a family sedan will do likewise.
The driver’s history of accidents and tickets is an important part of determining insurance rates. In most states, insurance companies can also take the driver’s credit history into account when deciding whether to issue a policy.
Learn More: How Credit Scores Affect Auto Insurance Rates
The more accurate the information entered when requesting a quote, the more accurate the quote will be. Know what states have the highest auto insurance rates so that you can compare quotes among other quotes for that state.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Shopping for Your Vehicle’s Set Auto Insurance Requirements
There are set requirements for every type of vehicle. What you are required to carry on your vehicle depends on what state you live in (Read More: How much car insurance do I need?). Not carrying the set coverage requirement in your state could lead to loss of driving privileges and fines.
Be sure to compare quotes and know what your set reirements are in order to get the best auto insurance rates. Enter your ZIP code into our free auto insurance comparison tool to start comparing quotes right away.
Frequently Asked Questions
Is auto insurance coverage mandatory for all cars?
Yes, auto insurance coverage is required in most states to drive a car legally.
Can I choose the types of coverage I want for my car insurance?
In most states, drivers can choose the types of coverage they want, but certain coverages are mandatory.
What type of insurance is required for all vehicles?
The majority of states require all vehicles to carry at least liability insurance, which is a very affordable coverage (Learn More: Cheapest Liability-Only Auto Insurance).
Why do auto insurance rates vary between companies?
Auto insurance rates can vary widely between companies due to factors such as the driver’s history, the type of car, and the company’s pricing strategies.
Why do auto insurance minimums vary from state to state?
Each state sets its own minimum requirements for auto insurance coverage based on its specific laws and regulations.
How can I find the best prices on car insurance?
To find the best prices on car insurance, it’s recommended to obtain online quotes from multiple companies and compare them (Read More: How to Get Free Online Auto Insurance Quotes). Factors like driving history and credit score can also affect rates.
What is no-fault auto insurance?
In simplest terms, no-fault insurance means that when there is an accident, each driver’s insurance company covers its own policyholder’s damages. It does not matter who is at fault. In most states that require no-fault automobile insurance, the policyholders are limited in their ability to sue the other driver.
Do all my cars have to be on the same insurance policy?
No, you can insure your cars using different auto insurance policies. To shop for different policies for your cars, enter your ZIP in our free quote tool.
What are the three types of car insurance?
The three basic types of auto insurance are liability, collision, and comprehensive car insurance.
What is the most basic form of car insurance?
The most basic type of auto insurance is liability insurance.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
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.