How much car insurance do I need?
Have you ever asked the question, how much car insurance do I need? The minimum car insurance coverage you need depends on the state. But the most common coverage level is 25/50/25. However, auto insurance companies may recommend 50/100/50 limits. Liability is required, but drivers who make payments on their car need full coverage. Shop around and compare multiple insurance companies to secure the best rates.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: May 21, 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 insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above 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 insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: May 21, 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 insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Are you wondering, “How much car insurance do I need?” and looking for answers to make an informed decision? Look no further. We will explore the key factors that determine the appropriate level of car insurance coverage based on your unique needs and circumstances. From liability insurance to comprehensive and collision coverage, we will delve into the essential components of a well-rounded policy.
Moreover, we will discuss the importance of recycling at home, highlighting practical tips and techniques to reduce waste and promote environmental sustainability. Don’t miss out on this valuable information! Enter your zip code now to compare rates from the best insurance providers and take a step towards securing the ideal car insurance policy while contributing to a greener future.
How much car insurance coverage do I need?
The amount of auto insurance coverage you need depends on the state in which you live.
The minimum auto insurance requirement is liability insurance coverage. Depending on the state, your liability insurance may include two or more coverages.
With liability auto insurance, you’ll have a coverage limit. How much coverage do you need for auto insurance? Check out the list below to see the minimum vehicle insurance requirements for each state.
Car Insurance Minimum Coverage Requirements by State
| State | Coverages | Limits |
|---|---|---|
| Alabama | Bodily injury and property damage liability | 25/50/25 |
| Alaska | Bodily injury and property damage liability | 50/100/25 |
| Arizona | Bodily injury and property damage liability | 15/30/10 |
| Arkansas | Bodily injury, property damage liability, and personal injury protection | 25/50/25 |
| California | Bodily injury and property damage liability | 15/30/5 |
| Colorado | Bodily injury and property damage liability | 25/50/15 |
| Connecticut | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/20 |
| Delaware | Bodily injury, property damage liability, and personal injury protection | 25/50/10 |
| Florida | Property damage liability and personal injury protection | 10/20/10 |
| Georgia | Bodily injury and property damage liability | 25/50/25 |
| Hawaii | Bodily injury, property damage liability, and personal injury protection | 20/40/10 |
| Idaho | Bodily injury and property damage liability | 25/50/15 |
| Illinois | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/20 |
| Indiana | Bodily injury and property damage liability | 25/50/25 |
| Iowa | Bodily injury and property damage liability | 20/40/15 |
| Kansas | Bodily injury, property damage liability, and personal injury protection | 25/50/25 |
| Kentucky | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 25/50/25 |
| Louisiana | Bodily injury and property damage liability | 15/30/25 |
| Maine | Bodily injury, property damage liability, uninsured/underinsured motorist coverage, and medical payments | 50/100/25 |
| Maryland | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 30/60/15 |
| Massachusetts | Bodily injury, property damage liability, and personal injury protection | 20/40/5 |
| Michigan | Bodily injury, property damage liability, and personal injury protection | 20/40/10 |
| Minnesota | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 30/60/10 |
| Mississippi | Bodily injury and property damage liability | 25/50/25 |
| Missouri | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/25 |
| Montana | Bodily injury and property damage liability | 25/50/20 |
| Nebraska | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/25 |
| Nevada | Bodily injury and property damage liability | 25/50/20 |
| New Hampshire | None; only financial responsibility | NA |
| New Jersey | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 15/30/5 |
| New Mexico | Bodily injury and property damage liability | 25/50/10 |
| New York | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 25/50/10 |
| North Carolina | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 30/60/25 |
| North Dakota | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 25/50/25 |
| Ohio | Bodily injury and property damage liability | 25/50/25 |
| Oklahoma | Bodily injury and property damage liability | 25/50/25 |
| Oregon | Bodily injury, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage | 25/50/20 |
| Pennsylvania | Bodily injury, property damage liability, and personal injury protection | 15/30/5 |
| Rhode Island | Bodily injury and property damage liability | 25/50/25 |
| South Carolina | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/25 |
| South Dakota | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/25 |
| Tennessee | Bodily injury and property damage liability | 25/50/15 |
| Texas | Bodily injury, property damage liability, and personal injury protection | 30/60/25 |
| Utah | Bodily injury, property damage liability, and personal injury protection | 25/65/15 |
| Vermont | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/10 |
| Virginia | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/20 |
| Washington, D.C. | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/10 |
| West Virginia | Bodily injury, property damage liability, and uninsured/underinsured motorist coverage | 25/50/25 |
| Wisconsin | Bodily injury, property damage liability, uninsured/underinsured motorist coverage, and medical payments | 25/50/10 |
| Wyoming | Bodily injury and property damage liability | 25/50/20 |
You’ll notice that coverage limits are abbreviated. For example, 25/50/25 stands for $25,000 for bodily injury of one person per accident, $50,000 for bodily injury of multiple people per accident, and $25,000 for property damage per accident.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) insurance includes the same bodily injury coverage limit.
What are the recommended car insurance policy limits?
Sometimes the minimum coverage limit isn’t enough. The best insurance companies recommend raising your coverage level to avoid depleting your coverage limits.
So how much auto insurance do you really need? Here are the recommended limits for drivers:
- $50,000 for bodily injury person per accident
- $100,000 for total bodily injury per accident
- $50,000 for property damage per accident
The abbreviation for this coverage level is 50/100/50. You may see this listed as a medium coverage level. High coverage levels usually consist of 100/300/100 as coverage limits.
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What car insurance coverages do I need?
The amount of auto insurance coverage you need depends on your location. Some states have similar minimum coverage limits, but they’re unique in some way.
However, most drivers only need liability car insurance, which includes bodily injury liability and property damage liability.
Some states include uninsured/underinsured (UM/UIM) motorist coverage as part of their minimum requirements.
Meanwhile, a handful of states have personal injury protection (PIP) or medical payments (MedPay) attached to their state’s minimum requirements.
Which states require you to carry UM/UIM car insurance coverage?
Most auto insurance companies recommend UM/UIM auto insurance. However, some areas in the United States require you to have UM/UIM coverage.
Here is a list of states that mandate UM/UIM car insurance coverage:
- Connecticut
- District of Columbia
- Illinois
- Kentucky
- Maine
- Maryland
- Minnesota
- Missouri
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Carolina
- South Dakota
- Vermont
- Virginia
- West Virginia
- Wisconsin
Twenty states require UM/UIM car insurance for drivers. However, we recommend that you add UM/UIM coverage to your auto insurance policy.
Which states require PIP?
Personal injury protection (PIP) provides extra benefits if you’re injured after an accident and are unable to work. Some states require drivers to have PIP.
Review the list below to discover which states require PIP:
- Arizona
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Oregon
- Pennsylvania
- Texas
- Utah
Only 17 states require PIP on car insurance policies. This coverage option can supplement your health insurance and provide more alternatives to cover bills that your health insurance won’t pay.
Which states require you to have MedPay?
There are a handful of states that require medical payments. Here are the three states that require MedPay:
- Maine
- Pennsylvania*
- Wisconsin
Different sources state that MedPay is required. However, the MWL Attorneys at Law reports that MedPay isn’t required in Pennsylvania.
How much are liability car insurance rates?
Liability auto insurance rates vary by state. The more you add to your policy, the higher the monthly car insurance cost.
So how much vehicle liability insurance do you need, and how much does it cost? Let’s examine the monthly car insurance rates based on coverage level.
Average Monthly Car Insurance Rates by Coverage Level
| State | State Minimum Liability-Only | State Minimum with Collision and Comprehensive Coverage ($1K Deductible) | 100/300/100 with Collision and Comprehensive Coverage ($1K Deductible) |
|---|---|---|---|
| AL | $42 | $76 | $96 |
| AK | $36 | $61 | $76 |
| AZ | $45 | $79 | $95 |
| AR | $43 | $69 | $100 |
| CA | $48 | $87 | $118 |
| CO | $54 | $93 | $120 |
| CT | $69 | $98 | $115 |
| DE | $53 | $82 | $94 |
| DC | $69 | $100 | $124 |
| FL | $72 | $101 | $165 |
| GA | $74 | $107 | $143 |
| HI | $37 | $65 | $83 |
| ID | $27 | $55 | $62 |
| IL | $31 | $51 | $59 |
| IN | $49 | $88 | $99 |
| IA | $32 | $51 | $59 |
| KS | $35 | $69 | $73 |
| KY | $65 | $98 | $119 |
| LA | $98 | $153 | $281 |
| ME | $50 | $88 | $105 |
| MD | $123 | $169 | $194 |
| MA | $28 | $44 | $48 |
| MI | $302 | $419 | $452 |
| MN | $72 | $109 | $115 |
| MS | $51 | $89 | $99 |
| MO | $34 | $67 | $89 |
| MT | $39 | $79 | $94 |
| NE | $35 | $58 | $68 |
| NV | $30 | $60 | $60 |
| NH | $34 | $61 | $67 |
| NJ | $34 | $57 | $62 |
| NM | $85 | $117 | $140 |
| NY | $43 | $75 | $103 |
| NC | $69 | $99 | $159 |
| ND | $265 | $352 | $397 |
| OH | $34 | $53 | $60 |
| OK | $39 | $73 | $103 |
| OR | $56 | $75 | $84 |
| PA | $57 | $99 | $126 |
| RI | $83 | $130 | $153 |
| SC | $47 | $69 | $90 |
| SD | $29 | $57 | $64 |
| TN | $38 | $68 | $82 |
| TX | $47 | $83 | $106 |
| UT | $54 | $76 | $94 |
| VT | $35 | $57 | $63 |
| VA | $32 | $58 | $64 |
| WA | $50 | $79 | $102 |
| WV | $37 | $63 | $69 |
| WI | $40 | $70 | $80 |
| WY | $23 | $63 | $66 |
If you’re making payments on your vehicle, you’ll need full coverage. Most full coverage auto insurance policies come with a deductible due to their connection with collision and comprehensive coverage.
Deductibles are usually attached to collision and comprehensive coverage.
According to the National Association of Insurance Commissioners (NAIC), liability-only coverage is $48/month.
A deductible is an amount you pay before an insurance company completes the claim process. The higher your deductible, the less you’ll pay per month for auto insurance.
How much are car insurance rates at the top companies?
If you don’t have auto insurance yet, you should start shopping for coverage right away.
Here’s a list of the best car insurance companies in the United States:
Average Monthly Full Coverage and Liability-Only Car Insurance Rates
| Company | Full Coverage Car Insurance Rates | Liability-Only Car Insurance Rates |
|---|---|---|
| Allstate | $161 | $63 |
| American Family | $113 | $52 |
| Farmers | $125 | $47 |
| Geico | $84 | $38 |
| Liberty Mutual | $137 | $52 |
| Nationwide | $95 | $37 |
| Progressive | $98 | $43 |
| State Farm | $100 | $41 |
| Travelers | $109 | $46 |
| USAA | $101 | $38 |
USAA is only available to military veterans and their immediate families. But Geico, Nationwide, and Progressive are affordable car insurance companies you may want to consider.
Should I buy Gap insurance?
Gap insurance isn’t required, but it’s an optional coverage that provides an extra layer of protection after an accident.
Your gap insurance coverage can cover the cost of a vehicle you’re still financing by paying off the difference you owe to either the dealer or the finance company.
While liability insurance and full coverage (in some situations) are required, gap insurance is optional but highly recommended.
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Case Studies: Determining the Ideal Amount of Car Insurance
Case Study 1: Jennifer’s Comprehensive Coverage
Jennifer is a 35-year-old working professional who recently purchased a brand-new luxury car. Given the substantial investment she made, Jennifer opted for comprehensive coverage that includes collision, liability, and comprehensive insurance. This decision ensures that her vehicle is protected against damages caused by accidents, theft, or natural disasters.
Jennifer’s comprehensive coverage offers her peace of mind, knowing that she is well-protected financially in case of unforeseen events.
Case Study 2: Mike’s Minimal Coverage
Mike, a college student on a tight budget, owns an older car with a low market value. Due to his limited finances, he chooses to carry only the minimum required liability coverage mandated by his state. Although Mike’s insurance costs are relatively low, he understands the potential risks associated with his decision.
In case of an accident, Mike would be responsible for any damages beyond his coverage limits. He carefully weighs the risks and believes that his car’s lower value justifies carrying minimal coverage.
Case Study 3: Sarah’s Personal Injury Protection
Sarah, a parent with young children, places a high priority on their safety. Recognizing the vulnerability of her loved ones, she opts for additional personal injury protection (PIP) coverage alongside her standard liability insurance. Sarah believes that PIP coverage is crucial for covering medical expenses and lost wages for herself and her passengers, regardless of who is at fault in an accident.
This added protection ensures that her family’s financial well-being is safeguarded in the event of an unfortunate incident.
Case Study 4: Mark’s High-Risk Profile
Mark, a 22-year-old with a history of speeding tickets and at-fault accidents, is considered a high-risk driver. Given his past driving record, he faces higher insurance premiums. To protect himself from potentially significant financial losses, Mark opts for higher liability limits and uninsured/underinsured motorist coverage.
Although Mark’s insurance costs are more expensive due to his risky profile, he understands the importance of being adequately covered in case of an accident.
Case Study 5: Emily’s Balancing Act
Emily, a middle-aged professional, seeks to strike a balance between sufficient coverage and affordability. She conducts thorough research, comparing different insurance providers and their policy options. Emily selects a policy that offers a moderate level of coverage, including liability, collision, and comprehensive insurance, without stretching her budget.
By carefully evaluating her needs and exploring various insurance options, Emily finds a suitable plan that meets her requirements.
How Much Car Insurance Do You Need: The Bottom Line
The policy limits and coverage options you need depend on where you live. Your auto insurance needs are also based on your vehicle situation.
Liability is the coverage required for most drivers, but anyone who still makes payments on their car must carry full coverage car insurance.
While the minimum auto insurance requirement allows you to drive legally on the roadway, the medium coverage level is recommended.
Now that you know how much car insurance you need, enter your ZIP code in the free online quote tool to compare multiple insurance companies in your area.
Frequently Asked Questions
How much car insurance coverage do I need?
The amount of car insurance coverage you need depends on the state in which you live. However, the minimum coverage required by most states is 25/50/25. This means that you need at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident, and $25,000 in property damage liability coverage per accident.
What are the recommended car insurance policy limits?
The recommended car insurance policy limits are 50/100/50. This means that you should have at least $50,000 in bodily injury liability coverage per person, $100,000 in bodily injury liability coverage per accident, and $50,000 in property damage liability coverage per accident. However, you may need higher limits if you have significant assets to protect.
What car insurance coverages do I need?
The car insurance coverage you need depends on your state’s minimum requirements and your individual circumstances. Most states require liability coverage, which covers the costs associated with injuries or damage to other people or property in an accident that you cause. If you are making payments on your car, you will need to have collision and comprehensive coverage as well. Uninsured/underinsured motorist coverage is also recommended to protect you in case you are in an accident with someone who does not have insurance.
Which states require you to carry UM/UIM car insurance coverage?
The following states require drivers to carry uninsured/underinsured motorist coverage: Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin.
Which states require PIP?
The following states require Personal Injury Protection (PIP) coverage: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah.
Which states require you to have MedPay?
The following states require drivers to carry Medical Payments (MedPay) coverage: Maine, Minnesota, New Hampshire, Oregon, Pennsylvania, and Utah. However, this coverage is optional in most states.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.