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Every state has its own requirements for auto insurance, with a minimum level of coverage you need to carry in order to comply with the law. While experts recommend that you increase your limits above the state minimum to be properly protected, there are a number of reasons to carry just the basics. There are also some states where a basic policy is a better value than it is elsewhere.
So which are the best states for carrying minimum auto insurance coverage? We looked at state minimum coverage along with the average cost of that coverage to determine where you’ll get the best deal for your insurance dollar.
Everyone’s needs for insurance coverage are a little different, and since there are a lot of factors that affect auto insurance rates, the price will vary, even for basic coverage. So while you may settle on just the minimum in the end, it’s always worth comparing rates to see if you can get more coverage for the same amount of money somewhere else.
In the meantime, let’s look at which states give you the most bang for your minimum-coverage buck.
Table of Contents
Before we move on to talking about which states are the best bet for a driver to carry a bare-bones policy, let’s take a quick look at what the minimum required coverage is in each state. The numbers represent car insurance laws by state for bodily injury liability in thousands per person, bodily injury per incident, and property damage liability limits.
That means 25/50/25 represents bodily injury limits of $25,000 per person and $50,000 per incident, and $25,000 for property damage. Here are the numbers for each state.
State | Coverage Types Required | Minimum Coverage Requirements |
---|---|---|
Alaska | BI & PD Liab | 50/100/25 |
Alabama | BI & PD Liab | 25/50/25 |
Arkansas | BI & PD Liab, PIP | 25/50/25 |
Arizona | BI & PD Liab | 15/30/10 |
California | BI & PD Liab | 15/30/5 |
Colorado | BI & PD Liab | 25/50/15 |
Connecticut | BI & PD Liab, UM, UIM | 25/50/20 |
District of Columbia | BI & PD Liab, UM | 25/50/10 |
Delaware | BI & PD Liab, PIP | 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 |
Iowa | BI & PD Liab | 20/40/15 |
Idaho | BI & PD Liab | 25/50/15 |
Illinois | BI & PD Liab, UM, UIM | 25/50/20 |
Indiana | BI & PD Liab | 25/50/25 |
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 |
Massachusetts | BI & PD Liab, PIP | 20/40/5 |
Maryland | BI & PD Liab, PIP, UM, UIM | 30/60/15 |
Maine | BI & PD Liab, UM, UIM, MedPay | 50/100/25 |
Michigan | BI & PD Liab, PIP | 20/40/10 |
Minnesota | BI & PD Liab, PIP, UM, UIM | 30/60/10 |
Missouri | BI & PD Liab, UM | 25/50/25 |
Mississippi | BI & PD Liab | 25/50/25 |
Montana | BI & PD Liab | 25/50/20 |
North Carolina | BI & PD Liab, UM, UIM | 30/60/25 |
North Dakota | BI & PD Liab, PIP, UM, UIM | 25/50/25 |
Nebraska | BI & PD Liab, UM, UIM | 25/50/25 |
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 |
Nevada | BI & PD Liab | 25/50/20 |
New York | BI & PD Liab, PIP, UM, UIM | 25/50/10 |
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 |
Virginia | BI & PD Liab (9), UM, UIM | 25/50/20 |
Vermont | BI & PD Liab, UM, UIM | 25/50/10 |
Washington | BI & PD Liab | 25/50/10 |
Wisconsin | BI & PD Liab, UM, Medpay | 25/50/10 |
West Virginia | BI & PD Liab, UM, UIM | 25/50/25 |
Wyoming | BI & PD Liab | 25/50/20 |
State coverage requirements vary in terms of how much liability insurance you need and whether or not you are required to carry no-fault coverage like personal injury protection (PIP). Some states also require uninsured/underinsured motorist insurance (UM/UIM) coverage.
There is no state where collision and comprehensive are required, but if you have a car loan, you’ll likely need to add both.
What that means is that the minimum amount of automobile insurance coverage required by law is very different in Minnesota from what you need to buy in California.
To decide which states are the best places to drive on a minimum policy, we looked at the average cost of a car insurance policy with the minimum legal liability coverage in each state. We compared that to how much coverage you get for that amount of money and ranked the states accordingly.
Do you live in one of the best states to buy minimal auto insurance? Take a look at how the top states ranked.
Minimum required liability: 25/50/25
Average cost of liability insurance: $35/mo.
Additional required coverage: UM/UIM
Nebraska auto insurance requires minimum coverage limits that are the most common limits nationwide. Seventeen states have limits of 25/50/25 as the legal requirement, and several other states on our list have those same limits.
Nebraska has one of the lowest percentages of uninsured drivers in the country, coming in at number six with only 6.8 percent uninsured, according to the Insurance Information Institute (III). That helps keep costs low. UM/UIM is also required in this state.
With a reasonable average cost of car insurance for a pretty solid amount of coverage, Nebraska lands in the number 10 spot among the best states to carry the minimum limits.
Minimum required liability: 25/50/25
Average cost of liability insurance: $33/mo.
Additional required coverage: PIP
Although Kansas has the same required liability limits as Nebraska, a slightly lower average cost for that same coverage brings the state in one spot higher in the list. Like Nebraska, Kansas has a low number of uninsured drivers on the road at 7.2 percent.
A low number of uninsured motorists is common in states with a lower cost of insurance.
Kansas auto insurance law also requires that you carry PIP, which can help pay for your own medical bills in an accident regardless of fault. That makes a basic policy here a good bet.
Minimum required liability: 25/50/25
Average cost of liability insurance: $27/mo.
Additional required coverage:UM/UIM
A common thread among the best states for carrying the minimum car insurance is that they’re somewhat sparsely populated, which means less traffic and as a result, fewer accidents. The other common thread is a low percentage of uninsured drivers. In this case, South Dakota is at 7.7 percent, the 10th lowest in the country.
South Dakota auto insurance requires the same coverage levels as the first two states on our list, but an even lower cost of insurance at only $25 a month on average. UM/UIM coverage is also required here. That makes the basic policy a lot of coverage for a low price.
Minimum required liability: 25/50/25
Average cost of liability insurance:$25/mo.
Additional required coverage:PIP
Like its neighbor to the south, North Dakota auto insurance includes solid basic coverage and the cheapest average cost of any state on our list. Only 6.8 percent of drivers are uninsured here, which helps to keep those costs down.
In a state where the average cost of insurance is low, you can bump up your coverage without a huge jump in price.
That makes North Dakota an affordable place to carry extra insurance, but if you choose the basic policy, you’ll be getting more coverage for your money than in most other states. And with PIP required, a minimum policy offers extra protection.
Minimum required liability: 30/60/15
Average cost of liability insurance:$58/mo.
Additional required coverage:UM/UIM, PIP
Maryland auto insurance has a higher average cost than any other state on our list but also takes a jump in terms of coverage. PIP coverage is required in the state, which means you’re getting additional protection out of that basic policy. Maryland also requires uninsured/underinsured motorist (UM/UIM) coverage.
When you consider all of the coverage included in a basic policy, Maryland’s higher cost doesn’t seem so high after all.
At $30,000 per person and $60,000 per incident, Maryland’s minimum policy provides pretty good liability protection from the cost of injuries. If it’s all you can afford, you’re in better shape than drivers in a lot of other states.
Minimum required liability:25/65/15
Average cost of liability insurance: $47/mo.
Additional required coverage:PIP
Utah auto insurance law is unusual in that the per-incident total for bodily injury is not an exact doubling of the per-person coverage. That helps provide additional protection from injury lawsuits. Like Maryland, Utah’s property damage limit is on the low side. Fortunately, property damage claims don’t have the same tendency to grow in cost as do injury claims.
Utah also requires PIP coverage as a no-fault state. That means you’re getting solid liability coverage as well as protection for yourself from the minimum coverage.
With a low cost of insurance on average for the amount of coverage provided, Utah is a pretty safe place to carry a minimum policy.
Minimum required liability: 30/60/25
Average cost of liability insurance: $53/mo.
Additional required coverage:PIP
Texas is not the cheapest state on our list for the cost of auto insurance, but the basic policy requirements are higher than in most states. Bodily injury liability is a decent cushion, and Texas auto insurance equals the highest amount of property damage coverage required anywhere.
Texas has a fairly high number of uninsured motorists at 14.1 percent. Like in Maryland, however, that average cost of insurance also includes a requirement for PIP. PIP will pay your medical bills if you’re in an accident with an uninsured driver regardless of fault, which adds value to your basic policy.
Minimum required liability:30/60/25
Average cost of liability insurance:$31
Additional required coverage:UM/UIM
North Carolina auto insurance includes the same minimum liability coverage as Texas but at a lower price. That’s partially due to the fact that PIP isn’t included, but the state does require UM/UIM coverage on a basic policy.
A likely contributor to the low cost here is that the state ranks at number four for the fewest uninsured motorists at 6.5 percent. That makes the UM/UIM coverage cheaper. Overall, a basic policy in North Carolina is a pretty good deal for drivers.
Minimum required liability:50/100/25
Average cost of liability insurance:$47/mo.
Additional required coverage:None
When we arrive at the number two spot on the list, the minimum liability limits take a jump. At $50,000 per person and $100,000 per incident for bodily injury liability coverage, drivers in Alaska have a lot of protection in the event of an at-fault accident.
Alaska has the highest rate of uninsured motorists of any state on our list at 15.4 percent, so although it’s not required, you might want to consider adding UM/UIM coverage.
Although the average cost of an Alaska auto insurance policy is higher, you’re getting a lot of coverage for that money. And it’s far from the most expensive state for auto insurance rates. In spite of the dangers of winter roads, Alaska keeps rates on the low side and a basic policy here is an excellent deal.
Minimum required liability: 50/100/25
Average cost of liability insurance:$31
Additional required coverage:UM, MedPay
In spite of tying Alaska for the highest required liability limits in the country, Maine auto insurance has a lower average cost than some states with limits that are much lower. In fact, it’s among the cheapest states in the country for auto insurance. And a minimum policy here also includes uninsured motorist coverage and medical payments (MedPay) coverage as well.
Maine has the lowest percentage of uninsured drivers on the road in the nation, at 4.1 percent, which we’ve already noted is a common thread in our top states.
Is the number of uninsured motorists because auto insurance is so cheap, or is auto insurance cheap here because there are so few drivers without coverage on the road? It’s likely a bit of both. Maine’s lower volume of cars on the roads also contributes to the low rates.
Whatever the reason, Maine’s affordable and higher-than-average minimum liability limits make this the best state to carry a minimum coverage policy.
Every state has different coverage requirements, and in some places, that requirement is really low. It’s important to know where your state lands in terms of coverage so you’ll know if you’ve got enough insurance to protect yourself.
Where do the states that didn’t make the list of the best rank? Take a look at the map below to find out the requirements and annual rates for your state.
The states where a minimum coverage policy is a bad plan are, notably, also states with no-fault laws and a high number of uninsured motorists. Florida has the highest number of uninsured drivers in the country at 26.7 percent and high rates in spite of the fact that the state minimum car insurance in Florida is very low.
Although it’s not a no-fault state, California’s high cost of insurance for its very low liability limits make it a bad place to carry a minimum policy.
If you still have questions about carrying minimum auto insurance coverage in your state, check for the answers below.
The cheapest car insurance tends to be found in states with a smaller population, like the Dakotas, Vermont, Maine, and Wyoming.
Most experts will recommend that you carry more than the minimum, but it really depends on your personal situation. The more assets you have to protect, the more coverage you need.
Each state determines its own insurance laws. So do all states require you to buy some type of car insurance, and what type of insurance do most states require people to carry?
Most states do require that you carry an auto insurance policy in order to drive legally. The list of states that don’t require you to carry car insurance is short: New Hampshire. Although you don’t have to carry insurance there, you are financially responsible if you’re at fault in an accident.
Most people use insurance to provide for that responsibility, and when you buy insurance there is a minimum coverage level on that policy.
So what type of auto insurance are you required to carry in every state (49 out of 50)? Across the board in 49 states, liability insurance is required coverage. This pays for injuries and property damage when you are at fault. Even in a no-fault state, liability insurance is required.
In order to determine which states are the best for carrying only minimal auto insurance, we started with the minimum requirements in each state, according to the Insurance Information Institute (III). We added up the total amount of liability coverage each state requires.
We then looked at the average cost of a liability policy in each state based on National Association of Insurance Commissioners (NAIC) data. We used these two numbers to find out which states offer the most coverage for the lowest cost.
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