Minimum Car Insurance Requirements by State

Understanding State Insurance Requirements

Car insurance is regulated at the state level, which means requirements vary significantly across the country. Nearly every state mandates liability insurance — coverage that pays for injuries and property damage you cause to others in an at-fault accident.

Some states also require additional coverages:

• Personal injury protection (PIP) or medical payments (MedPay): Covers your own medical expenses regardless of fault (required in 12 no-fault states + D.C.)
• Uninsured/underinsured motorist (UM/UIM): Protects you if you're hit by a driver with no insurance or insufficient coverage (required or offered in most states)
• Proof of financial responsibility: Alternatives to insurance in New Hampshire and Virginia

State minimums are expressed in a three-number format, such as 25/50/25:

• First number: Bodily injury liability per person ($25,000)
• Second number: Bodily injury liability per accident ($50,000 total)
• Third number: Property damage liability per accident ($25,000)

Minimum Liability Requirements by State

Below is a complete table of minimum liability insurance requirements for all 50 states and D.C., current as of 2026:

No-Fault States and PIP Requirements

Twelve states and Washington D.C. operate under no-fault insurance systems and require personal injury protection (PIP) coverage:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Utah
• Washington D.C.

In no-fault states, your own PIP coverage pays for your medical expenses and lost wages after an accident, regardless of who caused it. This system is designed to reduce litigation by limiting when you can sue another driver — typically only in cases of severe injury or when damages exceed a certain threshold.

Maine requires medical payments (MedPay) coverage, which is similar to PIP but typically covers only medical expenses, not lost wages.

Uninsured/Underinsured Motorist Coverage Requirements

Many states require or strongly encourage uninsured motorist (UM) and underinsured motorist (UIM) coverage, which protects you if you're hit by a driver with no insurance or insufficient coverage.

States that require UM/UIM coverage include:

• Connecticut
• Delaware
• Hawaii
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Jersey
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• Virginia
• West Virginia
• Wisconsin
• Washington D.C.

In states where UM/UIM isn't required, it's typically offered and highly recommended. According to the Insurance Information Institute, approximately 1 in 8 drivers is uninsured nationally, with rates much higher in some states.

Proof of Insurance Requirements

Every state that requires insurance also requires you to carry proof. Acceptable forms of proof typically include:

• Insurance ID card: Physical card issued by your insurer
• Digital proof: Electronic ID card on your phone (accepted in all 50 states as of 2026)
• Policy declarations page: Document listing your coverages and limits

You must provide proof of insurance when:

• Pulled over by law enforcement
• Registering or renewing vehicle registration
• After an accident
• Requested by your state's DMV or insurance verification program

Failure to provide proof can result in fines, even if you actually have insurance.

Penalties for Driving Without Insurance

Penalties for driving without required insurance vary by state but can be severe:

• Fines: $100–$5,000 or more, depending on the state and whether it's a first or repeat offense
• License suspension: Your driver's license can be suspended for 30 days to a year or longer
• Vehicle impoundment: Your car can be towed and impounded
• SR-22 requirement: You may be required to file an SR-22 certificate (proof of financial responsibility) for 3+ years, which significantly increases insurance costs
• Registration suspension: Your vehicle registration can be suspended
• Reinstatement fees: $50–$500+ to restore your license and registration
• Personal liability: If you cause an accident, you're personally liable for all damages — medical bills, vehicle repairs, legal fees, lost wages

Some states also impose jail time for repeat offenders or for driving uninsured after a serious accident.

Why State Minimums Often Aren't Enough

State minimum requirements are designed to provide basic protection, not comprehensive financial security. Here's why they're often inadequate:

Medical costs are expensive. A 25/50 policy ($25,000 per person, $50,000 per accident) can be exhausted by a single emergency room visit, surgery, and a few days of hospitalization. Serious injuries requiring long-term care or rehabilitation can easily exceed $100,000.

Vehicles are expensive. A $10,000 or $15,000 property damage limit won't cover the cost of a totaled luxury SUV or damage to a commercial building.

You're personally liable for the excess. If damages exceed your policy limits, you can be sued for the difference. Creditors can pursue your wages, bank accounts, home equity, and other assets.

Most experts recommend at least 100/300/100. This provides $100,000 per person, $300,000 per accident for bodily injury, and $100,000 for property damage. If you have significant assets, consider even higher limits or an umbrella policy.

States That Don't Require Insurance

Only two states don't strictly require car insurance:

New Hampshire doesn't mandate insurance, but you must prove financial responsibility if you cause an accident. This means you're personally liable for all damages. If you can't pay, your license and registration will be suspended. Most New Hampshire drivers choose to carry insurance anyway.

Virginia allows drivers to pay a $500 annual uninsured motorist fee instead of buying insurance. However, this fee does NOT provide any coverage — you're still personally liable for all damages if you cause an accident. It's essentially a fee to legally drive uninsured, and it's generally a bad financial decision.

How to Save on Car Insurance While Meeting Requirements

Meeting your state's insurance requirements doesn't have to break the bank. Here are proven ways to reduce your premiums:

• Compare quotes from multiple carriers. Rates for identical coverage can vary by hundreds of dollars
• Ask about discounts. Bundling, safe driver, low mileage, good student, and telematics programs can save 20–40%
• Raise your deductibles. Higher deductibles (if you have collision/comprehensive) lower your premium
• Improve your credit. In most states, better credit scores = lower premiums
• Drive safely. Avoid accidents and violations to keep your rates low
• Consider usage-based insurance. Telematics programs track your driving and can save safe drivers up to 30%

For more strategies, see our guide on how to compare car insurance quotes.

Frequently Asked Questions