State-by-State Minimum Coverage Requirements

State-by-State Minimum Coverage Requirements

All states have financial responsibility laws that either explicitly or in effect require you to purchase at least some auto insurance. Although coverage requirements vary from state to state, you will typically need to buy some level of liability coverage. Other types of auto insurance coverage may be optional or required, depending on the state in which you live.

Auto insurance coverage is typically broken down into separate components:

·         Liability coverage: This provides protection for claims made against an insured, where the use of an insured vehicle caused bodily injury or property damage to someone else

·         Medical payments coverage or personal injury protection: This provides coverage for various medical expenses incurred by the insured and others as a result of an accident, regardless of negligence or liability on the part of the insured

·         Collision coverage: This provides coverage for losses that the insured suffers as a result of damage to his or her covered vehicle caused by a collision

·         Other-than-collision (also known as comprehensive) coverage: This provides coverage for losses that the insured suffers as a result of damage to or loss of a covered vehicle not caused by a collision (e.g., fire, theft, vandalism, falling objects, explosion, earthquake, flood, and civil commotion)

·         Uninsured motorist coverage: This provides coverage for losses that the insured and others sustain when injured through the negligence of an uninsured or unidentified hit-and-run motorist

·         Underinsured motorist coverage: This provides coverage for losses that the insured and others sustain when injured through the negligence of a motorist who has liability insurance, but the limit of that insurance is insufficient to pay for damages

State-by-state minimum coverage requirements

The following table provides up-to-date information on each state's minimum coverage requirements. The first two figures refer to bodily injury liability limits, and the third figure refers to the property damage liability limit. For example, 20/40/10 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 for the entire accident, and $10,000 worth of coverage for property damage. The state minimums are based on the most current information available. You should check your specific state requirements to verify these figures.

Is the minimum coverage required enough coverage?

Keep in mind that the figures given in the preceding table represent only required minimums. In many cases, it will be in your best interest to purchase coverage above and beyond the minimums (including collision and other than collision) so that you're adequately protected. With bodily injury liability, for instance, most insurance professionals recommend that your coverage limits be at least $100,000 per person and $300,000 per accident.

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