If you’re wondering how much car insurance you need, the short answer is that you need the minimum car insurance required by your state to drive legally. Insurance is required in most states, so learn about your state’s car insurance minimum requirements.
But the state minimum is rarely enough to protect your finances in case of a costly accident. Keep reading to find out more about recommended car insurance coverage.
Use the tool below to see how much auto insurance you need.
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- Most drivers should purchase full coverage car insurance with liability limits of 100/300/100.
- If you don’t purchase adequate liability insurance coverage, you’ll be legally liable for any damages beyond your policy’s liability limits.
- The average annual rate for state minimum liability-only coverage is $502. The average annual rate for liability coverage with limits of 50/100/50 is $647. And the average annual rate for full coverage with limits of 100/300/100 and a $500 deductible is $1,895.
What is the recommended level of car insurance?
CarInsurance.com editors recommend that most drivers have liability limits of 100/300/100 with full coverage. Full coverage comprises comprehensive, collision and liability. These limits provide you with protection within the following amounts:
- Up to $100,000 per person per accident
- Bodily injury liability of up to $300,000 per accident
- Up to $100,000 to repair other drivers’ vehicles and property that you damage.
Purchase enough car insurance to protect yourself from financial insecurity following a car accident. Liability insurance covers other drivers in the case of an accident. However, purchasing only the minimum limits will be too low to provide adequate coverage.
Choosing coverage that you can afford is only one factor when it comes to choosing insurance.
“You also want to be sure you have the coverage you need, that you are working with a responsive company if you need to file a claim, and that you take advantage of discounts you may be entitled to,” says Kandie Landers, owner of Brightway Insurance. “Your coverage needs are not just determined by your car, but also by understanding the whole of the assets you own, your family makeup, and many other factors.” of marketing at the Austin E. Cofrin School of Business at the University of Wisconsin-Green Bay, “a cautious and careful driver who is not likely to get into accidents could consider taking lower coverage limits as mandated by their state.”
How much car insurance do you need in your state?
If you’re wondering how much car insurance you truly need, you must carry the minimum car insurance required by your state to legally drive. Insurance is required in most states, so learn about your state’s minimum car insurance requirements.
| 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 | 15/30/5 | |
| Colorado | 25/50/15 | |
| Connecticut | 25/50/25 | UM/UIM |
| Delaware | 25/50/10 | PIP |
| District of Columbia | 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 | PIP |
| Louisiana | 15/30/25 | |
| Maine | 50/100/25 | UM/UIM, MedPay |
| Maryland***** | 30/60/15 | UM/UIM, UMPD, PIP |
| Massachusetts | 20/40/5 | UM, PIP |
| Michigan | 20/40/10 | 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****** | 15/30/5 | UM/UIM, PIP |
| New Mexico | 25/50/10 | |
| New York | 25/50/10 | UM, PIP |
| North Carolina | 30/60/25 | 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 | 25/65/15 | PIP |
| Vermont | 25/50/10 | UM/UIM, UMPD |
| Virginia | 30/60/20 | 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 |
That said, the state minimum is rarely adequate to protect your finances in case of a costly accident.
Still, says Aniruddha Pangarkar, assistant professor of marketing at the Austin E. Cofrin School of Business at the University of Wisconsin-Green Bay, “a cautious and careful driver who is not likely to get into accidents could consider taking lower coverage limits as mandated by their state.”
What are the types of car insurance coverage?
First, it’s important to understand that there are six basic types of car insurance. These include liability, collision, comprehensive, uninsured/underinsured motorist protection, personal injury protection and medical payments coverage.
Here is a basic explanation of each type:
- Liability: Liability coverage insures you when you are driving and you cause injury or damage to another person’s property. By law, you are required in most states to have liability insurance to drive on the roads.
- Collision: Collision coverage pays for damages to your car caused by a collision, whether that accident was your fault or not.
- Comprehensive: Comprehensive insurance covers damages caused to your car due to factors like weather, fire or theft.
- Uninsured motorist coverage (UM/UIM): Uninsured/underinsured motorist coverage pays for damage to your vehicle when the other party has no coverage or insufficient coverage to cover damages from an accident.
- Personal injury protection (PIP): PIP pays your medical bills and covers lost wages and other expenses for you or your passengers, no matter who causes an accident.
- Medical payments coverage (MedPay): MedPay or medical payments coverage is like personal injury protection but covers your medical expenses related to injuries resulting from an accident, regardless of who was at fault.
How much liability auto insurance do I need?
Minimum liability coverage is rarely advisable, but it’s better than nothing if you can’t afford more. In most states, the minimum liability required by your state is not enough to pay for serious injuries or to replace a newer car — it is only enough to drive legally.
“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,” says Ashleigh Trent, personal lines director and co-founder of TowerStreetInsurance.com “Although higher levels of protection such as 250/500/100 or $500K Combined Single Limit (CSL) are typically needed to meet the minimum requirements of an umbrella or excess liability policy.”
Here are a few different liability limit options:
State-minimum liability limits
This is the smallest amount of coverage your state will allow you to purchase. State-minimum liability coverage is not recommended.
50/100/50 coverage limits
This level of coverage is recommended for those who have an older car, few assets, don’t drive often or are on a tight budget, such as college students or retirees.
100/300/100 auto insurance limits
This liability level is adequate for middle-income earners with a typical level of savings in most circumstances. The cost of liability insurance, once you have bought the basic levels, does increase, but not exponentially.
“For coverage levels, I generally recommend carrying at least 100/300/100 coverage, which means $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $100,000 for property damage,” says Geoff Cudd, Consumer advocate and Owner of FindTheBestCarPrice.com. “However, if you have significant assets, you may want to opt for higher coverage levels to protect yourself against potential lawsuits. In contrast, if you’re driving an older vehicle with low value, you might consider lowering your coverage, but it’s essential to weigh the risks.”
250/500/100 coverage limits
If you own an expensive home or have a high net worth, consider supplementing this coverage through an umbrella liability policy, which can extend your protection by $1 million or more. It’s relatively inexpensive, but insurers typically want you to carry approximately $250,000 of liability insurance on your auto policy as well as $300,000 in liability insurance on a homeowners policy before they consider you for an umbrella policy, according to the Insurance Information Institute.
Learn more about what is covered by liability car insurance
Do I need full coverage car insurance?
In addition to liability, full coverage includes comprehensive and collision insurance. What are these insurances? Comprehensive pays for damage to your car from severe weather, fire, collisions with animals and theft, while collision coverage pays for repairs to your car no matter who is at fault.
As a matter of fact, when you owe money on your car, your lender will require you to purchase collision and comprehensive coverage, which would repair or replace your car. Liability insurance pays just for damages to other people’s cars, not your own. You will need to select a deductible amount for collision and comprehensive coverages. Damage below this amount is your responsibility to fix.
“We are finding that higher deductibles such as $1,000, $2,000 or $2,500 can decrease the premium of your insurance to the point where if you can go two years without a loss, you are financially ahead in the long run, rather than keeping lower deductibles,” Trent says.
Check out our detailed guide: ‘Do I need full coverage insurance for my new or used car?
How much do you pay for different car insurance coverage limits?
The average annual rate for state minimum liability-only coverage is $502. The average annual rate for liability coverage with limits of 50/100/50 is $647. And the average annual rate for full coverage with limits of 100/300/100 and a $500 deductible is $1,895.
The table below shows the average driver’s liability coverage costs in each state at three levels: the state’s minimum liability, 50/100/50 liability and 100/300/100 liability, which is the coverage generally recommended by insurers.
| State | State minimum liability | 50/100/50 liability | Full coverage with 100/300/100 limits |
|---|---|---|---|
| Alaska | $398 | $508 | $1,676 |
| Alabama | $433 | $639 | $1,860 |
| Arkansas | $397 | $589 | $1,957 |
| Arizona | $516 | $764 | $1,812 |
| California | $551 | $864 | $2,416 |
| Colorado | $437 | $717 | $2,337 |
| Connecticut | $704 | $783 | $1,725 |
| Washington, D.C. | $558 | $785 | $2,157 |
| Delaware | $788 | $1,022 | $2,063 |
| Florida | $993 | $1,629 | $2,694 |
| Georgia | $577 | $789 | $1,970 |
| Hawaii | $396 | $572 | $1,517 |
| Iowa | $260 | $320 | $1,630 |
| Idaho | $357 | $440 | $1,428 |
| Illinois | $421 | $471 | $1,532 |
| Indiana | $417 | $498 | $1,515 |
| Kansas | $434 | $471 | $1,900 |
| Kentucky | $606 | $810 | $2,228 |
| Louisiana | $722 | $1,266 | $2,883 |
| Massachusetts | $511 | $655 | $1,726 |
| Maryland | $727 | $756 | $1,746 |
| Maine | $335 | $341 | $1,175 |
| Michigan | $654 | $694 | $2,352 |
| Minnesota | $475 | $512 | $1,911 |
| Missouri | $488 | $582 | $1,982 |
| Mississippi | $463 | $637 | $2,008 |
| Montana | $350 | $540 | $2,193 |
| North Carolina | $476 | $523 | $1,741 |
| North Dakota | $349 | $370 | $1,665 |
| Nebraska | $331 | $373 | $1,902 |
| New Hampshire | $397 | $416 | $1,265 |
| New Jersey | $853 | $915 | $1,902 |
| New Mexico | $421 | $658 | $2,049 |
| Nevada | $720 | $1,042 | $2,060 |
| New York | $731 | $827 | $1,870 |
| Ohio | $362 | $446 | $1,417 |
| Oklahoma | $408 | $657 | $2,138 |
| Oregon | $641 | $710 | $1,678 |
| Pennsylvania | $375 | $504 | $1,872 |
| Rhode Island | $646 | $808 | $2,061 |
| South Carolina | $720 | $925 | $2,009 |
| South Dakota | $307 | $338 | $2,280 |
| Tennessee | $442 | $547 | $1,677 |
| Texas | $572 | $774 | $2,043 |
| Utah | $582 | $756 | $1,825 |
| Virginia | $428 | $477 | $1,469 |
| Vermont | $306 | $324 | $1,319 |
| Washington | $438 | $731 | $1,608 |
| Wisconsin | $365 | $425 | $1,664 |
| West Virginia | $510 | $585 | $2,005 |
| Wyoming | $288 | $331 | $1,758 |
Do I need uninsured motorist car insurance?
Getting into a crash with an uninsured motorist could be disastrous. In 2022, 14% of motorists, or about one in seven drivers, were uninsured, according to a 2023 study by the Insurance Research Council (IRC).
With almost 29 million uninsured drivers in the U.S. and the vast majority of insured drivers having just the state minimum coverage, uninsured/underinsured motorist coverage is highly recommended, according to Trent.
“It protects you if you’re in an accident with the one in seven drivers who don’t have insurance or don’t have enough insurance to cover your losses,” she says. “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. In tough economic times, people look at all their expenses and try to cut out excess costs. Even though insurance shouldn’t be a place for cost-cutting measures, many people do and are unable to have their insurance fully pay for the damages they cause.”
Do I need medical payments or personal injury protection coverage?
A few states require you to have medical payments coverage, but this insurance is optional in most states. Medical payments cover medical expenses up to a specified amount. And if you have a high-deductible health plan, medical payments could help pay the deductible.
If your state is a no-fault state, you may be required to buy personal injury protection (PIP) so that your injuries in a car accident are always covered up to your limits, no matter who causes an accident – you or someone else. An advantage is that this usually includes coverage for lost wages as well. These coverages are recommended, especially when you do not have health insurance.
How daily commute and vehicle use affect insurance needs
Your daily commute and the way you use your vehicle could affect your insurance needs as well. You may drive very little, meaning you feel safer having lower limits. On the flip side, you may be a person who commutes to work an hour each day, meaning you could benefit from higher coverage.
“When it comes to coverage levels, one size does not fit all,” says Erin Kemp, consumer advocate for Bumper.com. “I believe a policy should be tailored for each individual, taking into account their personal assets, risk tolerance, and budget. A good rule of thumb, though, is to ensure your liability coverage at least equals the total of your assets. If you have significant assets to protect or a high-risk lifestyle, you should consider even higher coverage levels.”
If your vehicle is a farm-use vehicle, this could net a discount. On the flip side, if you use your vehicle for any business purposes – including rideshare driving – you’ll need additional coverage.
Other types of car insurance to consider
Additionally, auto insurance companies offer other types of coverage, typically considered optional. Some of these coverages may be more useful to your personal case than others, so talk to your agent to determine which one could be helpful to you.
- Gap insurance: If your car is a total loss due to an accident, this coverage option will cover the difference between what is left to pay on your loan or lease and the vehicle’s actual cash value, which is often lower.
- Roadside assistance coverage: This coverage may be good for people who drive frequently or who commute long distances. While it covers service calls and towing expenses when your car breaks down, it does not pay for vehicle repairs.
- Rental car reimbursement coverage: This insurance pays for you to have a rental car when your car is in a shop for repairs. Adding this endorsement could be handy when your car is not drivable due to a covered incident.
- Non-owner car insurance: Non-owner car insurance is liability coverage that protects people who don’t have their own vehicle but still need to drive someone else’s on occasion. It pays out if you cause injury or property damage in an accident with another person.
Ways to save on premiums without compromising coverage
There are different ways that you can save on car insurance. One effective strategy is to shop around — that’s because the insurance industry is highly competitive and many companies want to acquire new customers from their competitors, according to Pangarkar.
He recommends calling your insurance company and asking about discounts that fit your particular situation. There are discounts for many different aspects in today’s market. For example, individuals can look for low-mileage auto insurance companies that can be a good fit for drivers on the road less than 7,500 miles annually.
“Car insurance companies offer two kinds of discounts for low-mileage consumers. The first is where consumers that drive below a certain threshold qualify (typically 7,500 miles as mentioned earlier,)” Pangarkar says. “In this first case, companies like Geico and State Farm offer highly competitive rates that can help drivers get substantial discounts. For the second type of discount, which is calculated based on a pay-per-mile rate, many insurance companies like Nationwide, Allstate and Liberty Mutual offer discounts. Many companies use apps to track driving history. Nationwide is a company that is reputed to offer good discounts in the pay-per-mile category.”
Frequently asked questions
How do I know if I have enough car insurance?
You can easily find this answer by looking at an article that specifies minimum liability car insurance by state or using the tool at the top of this page to find out what is recommended for a driver like you. Also, you can search for your state’s Department of Motor Vehicles to obtain more information about typical coverages. After that, having adequate car insurance depends on your needs.
“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,” says Trent. “On the other hand, if your vehicle is older and less valuable, you might opt for lower or no comprehensive and collision coverage. While I wouldn’t suggest it, if you have limited assets, you could consider lower liability limits.”
What happens if I don’t have enough car insurance?
The statutory consequences for possessing inadequate car insurance vary state by state. Potential ramifications include being fined or having your driver’s license and your registration suspended.
The financial consequences could be severe. If you’re in an accident that causes more damages and injuries than you have coverage for, you’ll be financially liable for the difference.
Can I change my coverage limits after purchasing a policy?
Once you purchase the auto insurance coverage that meets your needs you can still change your mind and change your coverage limits. Reach out to your agent or to your auto insurance company to discuss decreasing or increasing your limits and the related savings and costs that can come with that.
Is it worth getting more than the state minimum coverage?
Yes. As CarInsurance.com editors, we cannot stress the importance of purchasing high enough coverage limits, such as 100/300/100.
“At the very least, you should meet your state’s mandatory minimum coverage, although I don’t recommend that you stop there,” Trent says. “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.”
You may want to compare coverages through different providers to see what the costs are for the recommended auto insurance coverages. To find a good insurance deal for you, use our car insurance estimator by inputting your coverage needs and your ZIP code.
Resources & Methodology
Sources
- Texas Insurance Information Portal. About Auto Liability Insurance in Texas – TexasInsurance.org Accessed September 2024
- Insurance Information Institute. “Facts + Statistics: Uninsured Motorists.” Accessed September 2024.
- Insurance Information Institute. “What is an umbrella liability policy?”. Accessed September 2024.
- Towerstreetinsurance. “Tower Street Insurance.”Accessed September 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to report average auto insurance rates for 40-year-old drivers, both male and female, with good driving records and a Honda Accord LX. The analysis included data from 29,152 cities and 34,588 ZIP codes across the U.S. The study covered 170 insurance companies, analyzing a total of 53,409,632 insurance quotes. Various auto insurance coverage options were assessed, including factors such as a 12-mile daily commute and 10,000 annual mileage, to provide a comprehensive view of auto insurance rates for this specific driver profile.
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Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.