It is not only important to get good automobile insurance, but more importantly, it is the law in almost all states in the U.S. There are state minimum auto insurance laws that you need to abide by, including minimum levels of coverage. 

Most people know that carrying insurance coverage is mandatory, but few people are aware of their exact state’s mandates. While most insurance agents know the numbers by memory, you should become familiar with the insurance laws in your state, so you know exactly the type and amount of policy to get.

Found Liable In a Major Auto Accident  

Just as important, you should carefully consider the amount of coverage you select and not just go with the absolute cheapest policy available. If you are charged and found liable in a major auto accident, your cheap minimum state liability policy might get you in a lot of financial trouble. A good lawyer will sue you and possibly put a lien on your assets, including your bank account.  

Get the proper amount of protection, which may be much more than your state’s required mandates, and stay protected. Let Amigo Auto Insurance save you hundreds on the coverage you need, with rates starting at under $39 a month for qualified drivers. Get a complimentary quote online or call toll-free to speak with a licensed agent today.    

State Minimum Car Insurance Basics    

Each state has a regulatory branch that sets forth auto insurance laws. State auto insurance laws vary by state, but they all have some common elements. Your state will have minimum requirements for liability coverage. This will cover you financially, to a limit, damage done to another person’s property, and bodily harm in a crash you were at fault for causing. Three separate limits must be satisfied. 

*  Bodily Injuries for each person– Provides payments for medical costs related to injuries sustained to others as a result of an accident caused by you.

Bodily Injuries per incident – The limit per accident.

Property Damage – Provides payments for property damage that you caused (usually a person’s car) in an at-fault accident.

To illustrate this, let’s say your state might require a $15,000 minimum for each person in bodily injury, up to a $30,000 limit per accident, and $10,000 for costs related to property damage. Agents will refer to these numbers in order as a set. In the example above, it would be written and referred to verbally as 15/30/10.  

Check out your state’s minimum coverage requirements below.     

  1. Florida:  10/20/10
  2. Louisiana:  10/20/10  
  3. Oklahoma:  10/20/10
  4. Ohio:  12.5/25/7.5
  5. California:  15/30/5
  6. Delaware:  15/30/5  
  7. New Jersey:  15/30/5
  8. Pennsylvania:  15/30/5
  9. Nevada:  15/30/10
  10. Arizona:  15/30/10
  11. Georgia:  15/30/10
  12. Massachusetts: 20/40/5
  13. West Virginia: 20/40/10
  14. Hawaii: 20/40/10
  15. Alabama: 20/40/10
  16. Michigan: 20/40/10
  17. Connecticut: 20/40/10 
  18. Texas: 20/40/15
  19. Maryland: 20/40/15
  20. Illinois: 20/40/15
  21. Iowa: 20/40/15
  22. Idaho: 20/50/10
  23. Kansas: 25/50/10
  24. Indiana: 25/50/10
  25. Missouri: 25/50/10
  26. Kentucky: 25/50/10
  27. Montana: 25/50/10
  28. New Mexico: 25/50/10
  29. Wisconsin: 25/50/10
  30. Washington: 25/50/10
  31. New York: 25/50/10
  32. Oregon: 25/50/10
  33. Tennessee: 25/50/10
  34. Vermont: 25/50/10
  35. Colorado: 25/50/15
  36. Arizona: 25/50/15
  37. Virginia: 25/50/20
  38. Wyoming: 25/50/20
  39. South Dakota: 25/50/25
  40. North Dakota: 25/50/25
  41. South Carolina: 25/50/25
  42. Rhode Island: 25/50/25
  43. New Hampshire: 25/50/25
  44. Nebraska: 25/50/25
  45. Mississippi: 25/50/25
  46. Utah: 25/65/15
  47. Minnesota: 30/60/10
  48. North Carolina: 30/60/25
  49. Alaska: 50/100/25
  50. Maine: 50/100/25

Insurance Rates Vary By State

It is important to realize that lower insurance mandates don’t always equal lower overall costs. Several states with very low auto insurance minimums are at the top of the most expensive to insure list. This is because there are so many factors used to determine risk. These include the number of traffic accidents per area, weather incidents like hurricanes, population, and overall car thefts in a given region.  

Even though you might live in a state like Florida with really low liability limits, you will likely be paying more for that coverage. Amigo Insurance is a leader in providing low-cost auto insurance to Floridians. Get a free Amigo Car Insurance quote and see how simple it is to save hundreds in just a few short minutes.

States With Lower Minimums

Other states with lower minimums, like New Jersey and Louisiana, also have higher premiums than the national average. This can be partially attributed to the high rate of auto theft in New Jersey and the frequent litigious activity post-accident in Louisiana.  

So, although you might get cheap state car insurance, you can get sued and held liable for thousands. It’s important to get the most protection you can afford, as it might save you a lot of money if you get into a serious crash. Always remember to protect your assets with the proper amount of insurance coverage. 

Highest Minimum Coverage Limits

Also, states with lower overall insurance costs have more stringent insurance requirements. States like Minnesota, Utah, North Carolina, and Utah all have some of the highest minimum coverage limits. These states boast some of the lowest vehicle rates in the United States.

Stats show that drivers in these areas get in fewer accidents and have their cars stolen at a less frequent rate than in other states like Michigan. Lower limit mandated insurance policies in areas like New Jersey, which have overall higher rates, are put in place to help average residents afford the minimum insurance. Many low-income people would be priced out of vehicle coverage if the standards were higher. 

Get the Best Auto Insurance Policy you can Afford

Many people mistakenly think that buying the state minimum automobile insurance is all the coverage they need.  If you have personal assets like significant cash in the bank, a second car, a boat, etc., and are found liable in an at-fault accident, you could be hit with a substantial monetary judgment.  Your personal property could even be subject to a lien.

This is why getting the maximum insurance coverage you can afford for your asset preservation is critical.  If you have assets over $100,000, consider getting a comprehensive policy. If you have multiple homes, several cars, and a small business to protect, consider getting an umbrella policy that covers everything for $1 Million or more.

Amigo Insurance Quote Online

State minimum auto insurance should be reserved for those who can only afford this basic coverage and who don’t have serious assets to protect. Get a free Amigo Insurance quote online or over the phone in about five or six minutes. Get started comparing online rates from leading carriers and save the most on the coverage you need.