Minimum liability car insurance requirements by state (2026)

Minimum liability car insurance is the lowest level of coverage your state legally requires you to carry. Most states mandate bodily injury and property damage liability — expressed as limits like 25/50/25. Requirements, costs and additional coverages like personal injury protection (PIP) and UM/UIM vary by state. New Jersey raised its minimums effective January 1, 2026.

In this guide, we will discuss the auto insurance requirements by state and the average rates from top insurance companies.

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Contents

Table of Contents

Table of Contents

• What is minimum liability car insurance?
• Minimum car insurance requirements by state in 2026
• How much does minimum liability car insurance cost?
• Cheapest car insurance companies for minimum coverage
• What other coverages do states require beyond liability?
• Do you need more than the minimum liability coverage?
• Average annual full coverage car insurance rates by state
• Moving to a new state? Here’s what changes for your car insurance
• Frequently Asked Questions
• Resources & Methodology

What is minimum liability car insurance?

Minimum liability car insurance is the lowest amount of liability coverage you can purchase to remain legally compliant with your state’s car insurance laws. Liability insurance covers other people’s injuries and property damage you cause in an accident. It does not cover damage to your own vehicle, your own injuries or your passengers’ injuries.

If you’re in a crash you caused, your own repairs and medical bills are entirely your responsibility unless you carry additional coverage. It’s the most important thing to understand before you choose a policy.

How to read your state’s coverage limits (25/50/25 explained)

When you see 25/50/25 in insurance, it’s shorthand for coverage limits. The limits show three numbers: the first is the maximum payout per injured person, the second is the total maximum for all injuries in one accident and the third is the maximum for all property damage per accident. In this case, those limits would be $25,000, $50,000 and $25,000.

Minimum car insurance requirements by state in 2026

Drivers in every state but New Hampshire must carry minimum liability insurance. The most common minimum is 25/50/25, but limits range from Florida’s $10,000 PIP-only structure to Alaska’s 50/100/25. New Jersey increased its limits to 35/70/25 on Jan. 1, 2026. The table below lists all 50 states’ requirements, including any additional coverages mandated by each state.

Minimum coverage requirements sourced from each state’s Department of Insurance or motor vehicle agency website.
* 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.
*** New Jersey increased its limits to 35/70/25 on Jan. 1, 2026.
**** 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. 

Sophie’s quick tip

New Jersey raised its minimum liability limits on January 1, 2026. If you’re insured in New Jersey, verify your current policy meets 35/70/25 — plus required PIP and UM/UIM.

States with the highest and lowest minimum requirements

North Carolina has the highest property damage minimum at $50,000, while Florida requires no bodily injury liability at all — instead mandating personal injury protection (PIP).

Are there states that don’t require car insurance?

New Hampshire is the only state where car insurance is not required by law. However, New Hampshire drivers remain personally liable for damages caused in an accident. Virginia eliminated its uninsured motorist fee option in 2024, making car insurance mandatory there. Driving uninsured in any state carries serious financial and legal risk, including fines, license suspension and personal liability.

How much does minimum liability car insurance cost?

Minimum liability car insurance costs an average of $326 per year in Wyoming — the cheapest state — and $2,546 annually in New York, the most expensive, based on CarInsurance.com’s rate analysis. Rates vary widely for a number of reasons, including location-based risk factors, but a major factor is the variation in requirements from one state to another.

Below are the average minimum liability coverage rates by state.

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Cheapest car insurance companies for minimum coverage

GEICO offers the lowest average minimum liability rate among major insurers at $635 per year. USAA is the cheapest, at $453 per year, but it’s only available for military members and their families. The gap between the lowest and highest average rates is more than $500, making it worth comparing quotes from at least three companies before you decide.

Note: USAA is only available to current and former military members and their families.

Which states have updated their minimum liability limits recently?

In addition to New Jersey’s 2026 limit increase, four states raised their minimum liability limits in 2025: California, North Carolina, Utah and Virginia. In California, the new limits are 30/60/15; in North Carolina, they’re 50/100/50; in Utah, they’re 30/65/25; and in Virginia, they’re 50/100/25. New Jersey’s new limits are 35/70/25.

What other coverages do states require beyond liability?

Beyond bodily injury and property damage liability, many states require additional coverages. Personal injury protection (PIP) is mandatory in 13 no-fault states. Uninsured and underinsured motorist coverage (UM/UIM) is required in about half of all states. Medical payments coverage (MedPay) is required in Maine and Wisconsin. Check the state table above for exactly what your state mandates.

Personal injury protection (PIP)

Personal injury protection (PIP) covers medical expenses plus related costs for you and your passengers, regardless of who caused the accident. While MedPay covers medical costs, PIP also covers lost wages, child care or funeral expenses. PIP is required in Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, North Dakota, New Jersey, New York, Oregon and Utah. 

PIP vs. MedPay — understand the difference

Both cover medical bills after an accident. But PIP goes further — it also covers lost wages if you can’t work. If your state requires PIP, it’s worth understanding exactly what your policy includes.

Uninsured and underinsured motorist coverage (UM/UIM)

Uninsured motorist coverage/underinsured motorist coverage (UM/UIM) covers your medical expenses and vehicle damage (up to your policy’s limits) when the at-fault driver has no insurance or not enough coverage. 

UM/UIM is required in the following states: 

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

Medical payments coverage (MedPay)

MedPay covers your medical bills and those of your passengers after an accident, regardless of fault. Unlike PIP, MedPay does not cover lost wages, childcare or other non-medical expenses. MedPay is required in Maine and Wisconsin, and is an optional coverage in most other states

At-fault states vs. no-fault states

In at-fault states, the driver who causes an accident is legally responsible for all damages, and the injured party can sue them directly. In no-fault states, each driver’s own insurer pays their medical bills regardless of who caused the crash, limiting lawsuits. No-fault states require PIP coverage. No-fault insurance is designed to speed up payments and reduce fraud and unnecessary lawsuits.

Three states are what’s called “choice no-fault” states: Kentucky, Pennsylvania and New Jersey. Choice no-fault means that drivers can decide when they purchase their policy whether they want a no-fault policy or an at-fault (tort) policy. Choosing a tort policy means they retain their right to sue the at-fault driver, but it typically reduces PIP benefits.

* Kentucky, New Jersey and Pennsylvania are choice no-fault states where drivers can opt into either system.

Do you need more than the minimum liability coverage?

Most drivers need more coverage than the state minimum. A single hospitalization can cost more than $100,000, far beyond what a 25/50/25 policy covers. And if you cause an accident, you’re responsible for all costs above your policy limits. 

Suppose you’re in an accident and the other driver’s medical bills reach $80,000. If your per-person limit is $25,000, you owe the remaining $55,000 out of pocket. The other driver could sue you to recover those costs — and the court might allow them to collect it from your savings, your property or even your wages.

Carrying liability-only insurance also means that if your car is damaged in the accident, you’d have to pay to repair or replace it yourself. That’s why drivers opt for other types of car insurance, including full car insurance coverage. Full coverage car insurance includes collision and comprehensive coverage, as well as liability, property damage and optional coverages. Collision helps pay to repair or replace your vehicle after an accident, while comprehensive covers events that aren’t a collision — things like hailstorms, fires or even vandalism. 

Paying for full coverage car insurance now helps you avoid very expensive bills after a crash. According to the Insurance Information Institute, 77% of drivers add collision coverage, and 80% add comprehensive coverage to their policy.

Average annual full coverage car insurance rates by state

The cheapest states for full coverage car insurance are Vermont, New Hampshire and Hawaii. The most expensive are Louisiana, Michigan and Nevada. See the average full coverage rates for a policy with liability limits of 100/300/100 (limits that are recommended by car insurance experts) in the table below.

The real cost gap — what state minimums don’t cover  

What does minimum car insurance really cover? State minimum liability limits may seem like enough until you consider the real-world costs of an accident. The typical state minimum is 25/50/25. But the average injury claim is $28,278, according to the Insurance Information Institute — a difference of $3,278 that would come out of your pocket. 

Meanwhile, the average cost of a hospitalization would be $81,324, based on research published in the journal Injury Prevention. And the average cost of a new car is $50,000, or twice the $25,000 limit typical of minimum property damage coverage. If you finance your vehicle, gap insurance helps protect you if you owe more than your vehicle is worth. 

Source: U.S. Bureau of Labor Statistics

Moving to a new state? Here’s what changes for your car insurance

When you move to a new state, you typically have between 30 and 90 days to update your car insurance to meet your new state’s requirements. Your current policy might not be enough to meet your new state’s minimums and some coverages required in your old state, like PIP, may not be required or available in your new state.

From tort states to no-fault states (or vice versa), and what it means for your policy

In addition to different minimum liability limits, moving to a new state may require adding or deleting coverage, depending on state laws. 

Move to a no-fault state, and you’ll likely need to add PIP. In no-fault states, each driver’s insurer pays for medical expenses and related costs, covered under PIP.

But if you move to a tort state, where the at-fault driver’s bodily injury liability insurance typically covers the cost of injuries, PIP may be optional or even unavailable. In that case, you’d have to change your coverage to pay for the optional PIP or lose it altogether.

Frequently Asked Questions

What happens if I drive without the state minimum car insurance?

You risk fines, license suspension, vehicle impoundment and in some states, jail time. More importantly, you’re personally liable for every dollar of damage in an at-fault accident, with no insurer to absorb the cost. Penalties vary by state but routinely cost thousands of dollars — far more than a basic policy.

Does minimum liability insurance cover damage to my own car?

No. Minimum liability only covers injuries and property damage you cause to other people. It does not pay to repair your own vehicle or cover your own medical costs. For that, you need collision coverage (for crash damage) and comprehensive coverage (for theft, weather and other non-collision events).

What does 25/50/25 mean in car insurance?

In car insurance, 25/50/25 means your policy pays up to $25,000 per person injured, $50,000 total for all injuries in one accident and $25,000 for all property damage per claim. It’s the most common state minimum in the U.S., but these limits can be exhausted quickly in a serious accident involving medical bills or multiple injured parties.

Which state has the highest minimum car insurance requirements?

North Carolina requires 50/100/50, with the highest property damage minimum requirement at $50,000 per accident. Alaska, Maine and Virginia require 50/100/25, among the highest in the country for bodily injury, alongside North Carolina. However, New Hampshire technically has no minimum because car insurance isn’t legally required there, though drivers remain personally liable for all damages they cause.

Is minimum liability car insurance worth it?

Minimum liability keeps you legally compliant, but it doesn’t make you financially safe. Medical costs and legal damages from a serious accident can far exceed state minimums, leaving you personally on the hook for the balance. Higher limits typically add a modest monthly premium increase and provide far greater protection for your assets.

Did any states change their minimum car insurance requirements in 2026?

Yes. New Jersey raised its minimum liability limits to 35/70/25, effective January 1, 2026. NJ drivers are also required to carry UM/UIM and PIP. Review your policy to confirm you meet the updated minimums. No other states made significant changes for 2026 at the time of publication.

Resources & Methodology

Sources

1. State of New Jersey Department of Banking and Insurance. “BULLETIN NO. 25-06.” Accessed March 2026.
2. Virginia Department of Motor Vehicles. “Insurance Verification Program.” Accessed March 2026.
3. AM Best. “New Year Ushers in Higher Minimum Auto Liability Limits in Four States.” Accessed March 2026.
4. Insurance Business Magazine. “Minimum auto liability limits to increase in 4 states.” Accessed March 2026.
5. Insurance Information Institute. “Facts + Statistics: Auto insurance.” Accessed March 2026.
6. Injury Prevention. “Average medical cost of fatal and non-fatal injuries by type in the USA.” Accessed March 2026
7. U.S. Bureau of Labor Statistics. “CPI Inflation Calculator.” Accessed March 2026.

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Shivani Gite Contributing Writer

Shivani Gite is an insurance and personal finance writer with a degree in journalism. She specializes in simplifying complex insurance topics, providing readers with clear and accessible guidance to make informed coverage and financial decisions.

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