It starts with a fender bender — a quick stop, a distracted second, and suddenly there’s damage, paperwork and a sinking feeling. The other driver is upset. Your car isn’t drivable.
And then comes the real question: Is your insurance enough to cover it?
For many drivers, the answer only becomes clear after an accident. This guide breaks down your options so you can choose coverage that fits your needs — not just the legal minimum.
How much car insurance do I need?
See recommended coverage levels for drivers like you.State Laws & Minimum Coverage
What is the right amount of car insurance for me?
Definition: The right amount of car insurance is coverage that:
- Meets your state’s legal requirement.
- Protects your assets and savings from liability risks.
- Covers your vehicle’s value and medical costs after an accident.
- Fits your budget and risk tolerance.
Your policy doesn’t have one universal number — it depends on your finances, vehicle and where you live.
What are state minimum car insurance requirements?
State minimum car insurance requirements are the lowest amount of auto insurance coverage drivers are legally required to carry to register and operate a vehicle in a specific state.
Here’s what that means in plain English:
- Each state sets its own minimums, so requirements vary widely across the U.S. Every U.S. state (except New Hampshire) requires at least basic liability insurance to register and drive legally.
- These minimums are designed to ensure drivers can pay for injuries or damage they cause to others in a crash — not their own losses.
“With today’s medical costs and vehicle repair costs skyrocketing, choosing higher limits will protect your assets and decrease the potential of out-of-pocket expenses in case of an accident,” says Ashleigh Trent, personal lines director and co-founder of TowerStreetInsurance.com.
Purpose of state minimums:
- Bodily injury liability: Pays others’ medical costs if you’re at fault.
- Property damage liability: Pays to repair others’ vehicles or property.
Limitation: These minimum limits often fall far short of actual accident costs, especially for serious injuries, lawsuits or newer cars.
Example: A typical state minimum may pay only $25,000 for a person’s injuries per accident, but medical costs for moderate crashes often exceed that quickly.
See the minimum liability limits in each state in the table below.
| State | Minimum liability coverage limits | Other insurance required (if any) |
|---|---|---|
| Alabama | 25/50/25 | |
| Alaska | 50/100/25 | |
| Arizona | 25/50/15 | |
| Arkansas | 25/50/25 | |
| California | 30/60/15 | |
| Colorado | 25/50/15 | |
| Connecticut | 25/50/25 | UM/UIM |
| Delaware | 25/50/10 | PIP |
| Washington, D.C. | 25/50/10 | UM, UMPD |
| Florida* | 0/0/10 | PIP |
| Georgia | 25/50/25 | |
| Hawaii | 20/40/10 | PIP |
| Idaho | 20/50/15 | |
| Illinois | 25/50/20 | UM |
| Indiana | 25/50/25 | UM/UIM |
| Iowa | 20/40/15 | |
| Kansas | 25/50/25 | UM/UIM, PIP |
| Kentucky | 25/50/25 | |
| Louisiana | 15/30/25 | |
| Maine | 50/100/25 | UM/UIM, MedPay |
| Maryland | 30/60/15 | UM/UIM, UMPD |
| Massachusetts | 25/50/30 | UM, PIP |
| Michigan | 50/100/10 | PIP, PPI |
| Minnesota | 30/60/10 | UM/UIM, PIP |
| Mississippi | 25/50/25 | |
| Missouri | 25/50/25 | UM |
| Montana | 25/50/20 | |
| Nebraska | 25/50/25 | UM/UIM |
| Nevada | 25/50/20 | |
| New Hampshire** | 25/50/25 | UM/UIM, MedPay |
| New Jersey**** | 135/70/25 | UM/UIM, PIP |
| New Mexico | 25/50/10 | |
| New York | 25/50/10 | UM, PIP |
| North Carolina | 50/100/50 | UM, UIM |
| North Dakota | 25/50/25 | UM/UIM, PIP |
| Ohio | 25/50/25 | |
| Oklahoma | 25/50/25 | |
| Oregon | 25/50/20 | UM, PIP |
| Pennsylvania | 15/30/5 | PIP (First Party Benefits) |
| Rhode Island*** | 25/50/25 | |
| South Carolina | 25/50/25 | UM, UMPD |
| South Dakota | 25/50/25 | UM/UIM |
| Tennessee | 25/50/25 | |
| Texas | 30/60/25 | |
| Utah | 30/65/25 | UM, PIP |
| Vermont | 25/50/10 | UM/UIM, UMPD |
| Virginia | 50/100/25 | UM/UIM, UMPD |
| Washington | 25/50/10 | |
| West Virginia | 25/50/25 | UM, UMPD |
| Wisconsin | 25/50/10 | UM, UIM, MedPay |
| Wyoming | 25/50/20 |
* Florida doesn’t require bodily injury liability coverage, but many insurers only offer policies with minimum amounts of 10/20 of bodily injury coverage.
** Auto insurance isn’t mandatory in New Hampshire, but if you choose to buy insurance, these are the minimum amounts.
*** Rhode Island doesn’t require drivers to buy UM/UIM coverage if buying minimum liability coverage. If you buy higher liability limits, UM is required.
****In New Jersey, limits increased Jan. 1, 2026.
How much liability insurance should you buy?
Most insurance experts recommend at least 100/300/100 in liability coverage:
- $100,000 bodily injury per person
- $300,000 bodily injury per accident
- $100,000 property damage
Liability insurance pays for injuries or property damage you cause to others.
What is the typical recommendation for most drivers?
- 100/300/100 liability: This is a balanced baseline for most drivers who want meaningful protection without undue costs.
- $100,000 per person for injuries
- $300,000 per accident total
- $100,000 for property damage
“A common recommendation is to carry liability coverage of at least 100/300/100, meaning $100,000 per person for injuries, $300,000 total per accident and $100,000 for property damage,” Trent says.
Good for those who:
- Live in suburban or urban areas where accidents and theft are more likely
- Drive newer or moderately priced vehicles that would be expensive to repair or replace
- Finance or lease their vehicle (required by lenders)
- Want peace of mind from collision and comprehensive protection
- Have some assets or savings worth protecting against liability claims
Why state minimums usually aren’t enough
State minimum requirements are designed to keep drivers legal, not financially protected.
- Serious injuries can easily exceed $30,000-$50,000 in medical bills.
- New vehicles, EVs and SUVs can cost $40,000-$80,000 or more to repair or replace.
- If damages exceed your limits, you pay the difference out of pocket.
Should you choose higher liability limits for better coverage?
- 250/500/250 or higher: For people with significant assets (home, savings), higher limits reduce the risk of out‑of‑pocket losses if sued.
Best for high-income earners or drivers with significant assets who:
- Prefer higher liability limits to avoid out-of-pocket exposure after severe accidents
- Have substantial savings, home equity or investments to protect
- Drive new or luxury vehicles with high replacement costs
- Want the maximum financial protection available under standard auto insurance
- Frequently drive in high-traffic metro areas or states with higher lawsuit risk
Why more matters: Liability coverage protects your finances if you cause major injuries or property loss. With low limits, you could be personally responsible for costs beyond your policy.
Editor’s tipAs a dual-income household with a rental property in Nevada, Laura carries full coverage with limits of 250/500/250 on her two vehicles, as well as a $1 million umbrella policy. Umbrella policies and high liability limits are recommended for people with significant assets to protect.
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Collision and comprehensive coverage (full coverage)
Collision coverage pays to repair or replace your own vehicle after an accident, regardless of fault. Comprehensive coverage protects against non-crash events like theft, vandalism or weather damage. These are optional coverages that protect your vehicle.
When to add them:
- Your car is newer or valuable.
- You can’t afford to replace your car out of pocket.
- Your car is financed or leased (lender usually requires them).
- You live in an area prone to storms, theft or animal collisions.
“You may want higher limits of liability coverage and comprehensive and collision coverage if you have nicer or newer vehicles, significant assets to protect (such as a home, savings, own a business) or if you drive frequently in high-risk areas,” Trent says.
When you might skip them:
- Your car is old and worth less than the cost of coverage.
- You’re willing to pay for repairs yourself.
Uninsured & Underinsured Motorist coverage
Uninsured/underinsured motorist coverage (UM/UIM) steps in if you’re hit by a driver with little or no insurance. Match your UM/UIM limits to your liability limits for balanced protection.
- Uninsured Motorist (UM): Pays you if the at‑fault driver has no insurance.
- Underinsured Motorist (UIM): Pays when the at‑fault driver doesn’t have enough coverage.
You should consider UM/UIM if you:
- Drive in a state with high uninsured driver rates (like Florida, Mississippi or New Mexico).
- Can’t afford unexpected medical or repair bills out of pocket.
- Want added protection for passengers and family members who ride in your car.
“This coverage can be crucial, especially as we have seen an uptick in at-fault party limit issues, resulting in more uninsured and underinsured claims,” Trent says.
Why It Matters: About 1 in 8 drivers lacks adequate insurance.
Medical and Personal Injury Protection (PIP)
Some states require or offer optional medical payments (MedPay) or personal injury protection (PIP) coverage. These help cover your medical expenses and those of your passengers, no matter who caused the accident.
Consider adding these if:
- You have limited health insurance.
- You live in a state with no‑fault laws requiring PIP.
How much does full coverage car insurance cost in 2026?
- The national average cost for full coverage is $2,578 per year.
- Liability‑only policies cost less but offer weaker protection.
Remember: Insurance cost and how much you need are separate questions — a cheaper policy may leave you underprotected.
How do I decide how much car insurance coverage I need?
Ask yourself:
- Do I have assets to protect? If yes, higher liability limits make sense.
Is my car financed or leased? If so, you need collision and comprehensive coverage. - Can I afford medical bills and repairs out of pocket? If not, consider higher liability, UM/UIM and MedPay/PIP.
- What are the laws where I live? No‑fault states or high uninsured driver rates increase one’s coverage needs.
How much does car insurance cost in your state?
Car insurance costs vary dramatically depending on where you live — with some drivers paying nearly three times more than others for the same level of coverage.
States with the most expensive premiums
The top five most expensive states for full coverage in 2026 are:
- Louisian– $3,999
- Michigan– $3,964
- Nevada– $3,963
- Florida– $3,916
- Washington, D.C. – $3,465
These high costs often reflect urban congestion, extreme weather risk or higher claim/litigation rates.
States with the cheapest premiums
The five least expensive states are:
- Vermont – $1,660
- New Hampshire – $1,689
- Hawaii– $1,757
- Ohio– $1,783
- Maine – $1,808
These states benefit from low accident rates, fewer lawsuits and lower vehicle theft.
Tip:
Even in high-cost states, you can lower your premium by bundling policies, maintaining good credit and avoiding claims.
Frequently Asked Questions: How much car insurance you need
Is state minimum coverage enough?
No — state minimums satisfy legal requirements, but usually don’t provide enough financial protection after a serious accident.
Can I change my car insurance coverage later?
Yes — you can update your coverage at any time, whether you want to raise limits, drop optional coverages or switch providers.
How much uninsured motorist coverage should I buy?
It’s best to match your uninsured/underinsured motorist coverage to your liability limits. This ensures balanced protection if you’re hit by a driver with no or insufficient insurance.
How much liability insurance should I have?
Experts recommend at least 100/300/100 in liability limits. Liability coverage protects your finances if you injure others or damage property in an accident.
Do I need collision and comprehensive coverage?
If you lease or finance your car, yes — lenders require both. Even if you own your car, these coverages are worth it if your vehicle is newer or worth more than a few thousand dollars.
How do I choose my deductible amount?
Pick a deductible that fits your budget — typically between $500 and $1,000. Higher deductibles lower your monthly premium, but mean more out-of-pocket costs after a claim.
How do I find the right balance between cost and coverage?
Compare quotes from multiple insurers using identical coverage levels. Start with the recommended limits and adjust deductibles or add-ons like roadside assistance or gap insurance based on your budget.
Methodology
CarInsurance.com analyzed data from Quadrant Information Services to get car insurance rates. The rates are based on sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of $ 100,000/$300,000/$100,000 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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