| Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.
If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.
Below is an example of the state minimum limits for auto liability insurance. The first number refers to liability limits for bodily injury for any one person, the second to limits for all persons injured, and the third refers to property damage liability limits. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual and $10,000 coverage for property damage.
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State
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Liability limits (1)
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State
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Liability limits (1)
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State
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Liability limits (1)
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Alabama |
20/40/10 |
Kentucky |
25/50/10 |
North Dakota |
25/50/25 |
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Alaska |
50/100/25 |
Louisiana |
10/20/10 |
Ohio |
12.5/25/7.5 |
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Arizona |
15/30/10 |
Maine |
50/100/25 |
Oklahoma |
10/20/10 |
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Arkansas |
25/50/25 |
Maryland |
20/40/15 |
Oregon |
25/50/10 |
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California (2) |
15/30/5 |
Massachusetts |
20/40/5 |
Pennsylvania |
15/30/5 |
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Colorado |
25/50/15 |
Michigan |
20/40/10 |
Rhode Island |
25/50/25 |
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Connecticut |
20/40/10 |
Minnesota |
30/60/10 |
South Carolina |
15/30/10 |
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Delaware |
15/30/10 |
Mississippi |
10/20/5 |
South Dakota |
25/50/25 |
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D.C. |
25/50/10 |
Missouri |
25/50/10 |
Tennessee (7) |
25/50/10 |
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Florida (3) |
10/20/10 |
Montana |
25/50/10 |
Texas |
20/40/15 |
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Georgia |
25/50/25 |
Nebraska |
25/50/25 |
Utah |
25/50/15 |
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Hawaii |
20/40/10 |
Nevada |
15/30/10 |
Vermont |
25/50/10 |
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Idaho |
25/50/15 |
New Hampshire (4) |
25/50/25 |
Virginia |
25/50/20 |
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Illinois |
20/40/15 |
New Jersey (5) |
15/30/5 |
Washington |
25/50/10 |
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Indiana |
25/50/10 |
New Mexico |
25/50/10 |
West Virginia |
20/40/10 |
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Iowa |
20/40/15 |
New York (6) |
25/50/10 |
Wisconsin (4) |
25/50/10 |
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Kansas |
25/50/10 |
North Carolina |
30/60/25 |
Wyoming |
25/50/20 |
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(1) The first two figures refer to bodily injury liability and the third figure to property damage liability. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual, and $10,000 coverage for property damage.
(2) Low-cost policy limits for Los Angeles and San Francisco low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3. This is a pilot program effective from July 1, 2000 until January 1, 2007.
(3) Only property damage liability is compulsory.
(4) Liability insurance not compulsory; limits are for financial responsibility.
(5) Drivers may choose a Standard or Basic Policy. Basic Policy limits are 10/10/5.
(6) 50/100 if injury results in death.
(7) Although legally defined as financial responsibility, Tennessee's law is similar to a compulsory law because drivers can be fined if stopped by police or after crashes if they cannot show proof of financial responsibility.
Source: American Insurance Association; Property Casualty Insurerers Association of America; Insurance Information Institute. |
Source: Insurance Information Institute, Inc. www.iii.org
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