How much auto insurance do you need?
When it comes to how much auto insurance do you need, it depends on your state's insurance requirements. Most states require at least liability insurance, which costs an average of $44 per month. You may also have to carry uninsured/underinsured motorist, PIP, or MedPay auto insurance coverages.
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Aaron Englard
Insurance Premium Auditor
With over a decade of experience in insurance premium auditing, audit department management, and business audit representation, Aaron has developed a deep understanding of audit regulations, compliance requirements, and industry best practices. As the Founder & CEO of AdvoQates, he specializes in representing businesses during their audits to ensure accurate, transparent, and fair assessments ...
Insurance Premium Auditor
UPDATED: Feb 20, 2025
It’s all about you. We want to help you make the right coverage choices.
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 20, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Wondering how much auto insurance do you need? It depends on your state and personal needs.
While most states require at least a minimum amount of the top liability insurance coverage, many drivers find full coverage better meets their needs. Additionally, you may have to carry full coverage if you have an auto loan or lease. Insurance companies also offer add-on coverages, such as gap insurance and rental car reimbursement, to allow drivers to customize their policies as needed.
Keep reading to determine how much auto insurance you need and learn about your state’s coverage requirements. Then, you can use our free quote comparison tool to start shopping for the auto insurance you need.
- Auto insurance needs vary based on the state and driver
- Most states require a minimum amount of liability coverage, but this type of insurance doesn’t cover your vehicle
- Full coverage meets your state requirements and covers your car
How Much Auto Insurance You Need
There are many types of auto insurance coverage, which can make it challenging to pick out the right policy. While most drivers need car insurance, the amount varies significantly based on the driver and state.
Why do you need car insurance? Auto insurance is typically not optional. Most states require at least a minimum amount of liability coverage. This coverage pays for the damages to other parties when you’ve caused an accident.
However, minimum coverage auto insurance offers little protection. Limits are generally very low, and it doesn’t cover your vehicle’s damage. Experts encourage drivers to increase limits and add coverage to be better protected.
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For example, let’s say you have minimum coverage and cause an accident where the other driver is injured, their car is totaled, and your vehicle has significant damage.
Unfortunately, your minimum coverage probably won’t cover all of the medical costs and property damage to the other driver. In addition, damage to your vehicle won’t be covered at all, leaving you with substantial out-of-pocket costs.
The right coverages and limits for you depend on where you live and your personal needs. While minimum coverage is the cheapest, you may decide full coverage is best for you, especially if you can’t afford to pay for damages yourself. In addition, other car insurance coverages, such as roadside assistance, can be added to your policy.
Let’s dive into various car insurance coverages to help you determine your needs.
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Minimum Auto Insurance You Need
Each state determines what, if any, auto insurance is required. These minimums vary by coverage and limit. However, mandatory coverage usually consists of four types.
State minimum car insurance may include the following:
- Bodily injury liability (BIL) and property damage liability (PDL): BIL pays for injuries caused to others in an accident, and PDL pays for property damage you cause, including damage to another vehicle or an object, like a fence.
- Uninsured/underinsured motorist (UM/UIM): The top uninsured motorist insurance coverage pays for medical costs and property damage if a driver hits you and they have little or no auto insurance.
- Medical Payments (MedPay): What is medical payments coverage in car insurance? MedPay covers medical costs for you and your passengers after an accident, no matter which driver is at fault.
- Personal injury protection (PIP): Like MedPay, the best personal injury protection (PIP) insurance coverage helps pay for medical costs. In addition, it covers related costs, such as childcare, funeral expenses, and lost wages.
Many states require UM/UIM coverage since there are many uninsured drivers on the road. However, only a handful of states require MedPay or PIP insurance.
Auto Insurance Requirements by State
As we discussed above, each state has different car insurance requirements, so the level of coverage you need will be different from that of your out-of-state friend or family member.
When looking at auto insurance requirements, you may see them written something like this: 25/50/25. This means that the state requires $25,000 in bodily injury liability per person, $50,000 in bodily injury liability total per accident, and $25,000 in property damage liability per accident.
Wondering how much auto insurance you should have in your state? Take a look at this table to see auto insurance requirements by state.
Auto Insurance Minimum Requirements by State
| State | Requirement | Limits |
|---|---|---|
| Alabama | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Alaska | Drivers must carry bodily injury and property damage liability coverage. | 50/100/25 |
| Arizona | Drivers must carry bodily injury and property damage liability coverage. | 15/30/10 |
| Arkansas | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 25/50/25 |
| California | Drivers must carry bodily injury and property damage liability coverage. | 15/30/5 |
| Colorado | Drivers must carry bodily injury and property damage liability coverage. | 25/50/15 |
| Connecticut | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/20 |
| Delaware | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 25/50/10 |
| District of Columbia | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist coverage. | 25/50/10 |
| Florida | Drivers must carry property damage liability coverage, along with personal injury protection. | 10/20/10 |
| Georgia | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Hawaii | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 20/40/10 |
| Idaho | Drivers must carry bodily injury and property damage liability coverage. | 25/50/15 |
| Illinois | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/20 |
| Indiana | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Iowa | Drivers must carry bodily injury and property damage liability coverage. | 20/40/15 |
| Kansas | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 25/50/25 |
| Kentucky | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 25/50/25 |
| Louisiana | Drivers must carry bodily injury and property damage liability coverage. | 15/30/25 |
| Maine | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage, and medical payments. | 50/100/25 |
| Maryland | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 30/60/15 |
| Massachusetts | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 20/40/5 |
| Michigan | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 20/40/10 |
| Minnesota | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 30/60/10 |
| Mississippi | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Missouri | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist coverage. | 25/50/25 |
| Montana | Drivers must carry bodily injury and property damage liability coverage. | 25/50/20 |
| Nebraska | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/25 |
| Nevada | Drivers must carry bodily injury and property damage liability coverage. | 25/50/20 |
| New Hampshire | Drivers must demonstrate financial responsibility only. | 25/50/25 |
| New Jersey | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 15/30/5 |
| New Mexico | Drivers must carry bodily injury and property damage liability coverage. | 25/50/10 |
| New York | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 25/50/10 |
| North Carolina | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 30/60/25 |
| North Dakota | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 25/50/25 |
| Ohio | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Oklahoma | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| Oregon | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection, uninsured motorist, and underinsured motorist coverage. | 25/50/20 |
| Pennsylvania | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 15/30/5 |
| Rhode Island | Drivers must carry bodily injury and property damage liability coverage. | 25/50/25 |
| South Carolina | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/25 |
| South Dakota | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/25 |
| Tennessee | Drivers must carry bodily injury and property damage liability coverage. | 25/50/15 |
| Texas | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 30/60/25 |
| Utah | Drivers must carry bodily injury and property damage liability coverage, along with personal injury protection. | 25/65/15 |
| Vermont | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/10 |
| Virginia | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/20 |
| Washington | Drivers must carry bodily injury and property damage liability coverage. | 25/50/10 |
| West Virginia | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and underinsured motorist coverage. | 25/50/25 |
| Wisconsin | Drivers must carry bodily injury and property damage liability coverage, along with uninsured motorist and medical payments coverage. | 25/50/10 |
| Wyoming | Drivers must carry bodily injury and property damage liability coverage. | 25/50/20 |
What states don’t require car insurance? New Hampshire doesn’t require that drivers carry car insurance, but they have to show they can pay for damages if necessary. In addition, Virginia allows drivers to pay an annual uninsured motorist fee and forgo coverage. A few states also allow drivers to skip insurance and make a large cash deposit in case of an accident.
Remember, the state you live in affects the cost of car insurance. For example, states with higher minimum coverage requirements also have higher car insurance rates overall. In addition, states with a higher population or a higher number of uninsured drivers see higher rates. (For more information, read our “What are the costs of not having auto insurance?“).
Full Coverage Auto Insurance
Unlike minimum coverage, full coverage car insurance includes coverage for your vehicle with collision and comprehensive insurance.
Learn more: Top Full Coverage Auto Insurance: What You Need to Know
Collision auto insurance coverage pays for damages to your vehicle from an accident. Whether you hit another car, an object like a fence, or have a single-car rollover, collision coverage pays for damages to your vehicle. Your liability coverage pays for the damage to whatever you hit.
Comprehensive auto insurance coverage pays for your vehicle damages unrelated to an accident. This includes damages from theft, vandalism, fire, falling debris like tree limbs, and acts of nature, such as floods, hail, tornados, and hurricanes.
Learn more:
- Top Collision Auto Insurance Coverage: What You Need to Know
- Top Comprehensive Auto Insurance Coverage: What You Need to Know
Drivers who live in high-crime and high-traffic areas or places that experience extreme weather benefit from full coverage. However, that doesn’t mean full coverage is suitable for every driver.
Although full coverage offers the most protection for your vehicle, it is more expensive than minimum coverage. So, some drivers may not save money in the long run with the additional coverage. For example, if your car is worth $2,500 and your deductible is $1,000, minimum coverage would be a better option, since the higher rates and deductible mean you’re paying more than your car is worth.
However, forgoing full coverage means paying for repairs or a replacement vehicle yourself. Add full coverage to be protected if you drive an expensive car or can’t afford to pay out of pocket for a new one.
In addition, most lenders require full coverage car insurance. So, if you have a car loan or lease, you may not have the option to choose your level of coverage yourself. However, once the loan is paid off, the choice reverts back to you.
Optional Add-On Auto Insurance Coverages
In addition to state requirements and full coverage, most auto insurance companies provide numerous other coverages to meet drivers’ needs. While most drivers don’t need all of the add-on coverages, many take advantage of some extras.
Additional coverages may include:
- Gap insurance: Gap coverage pays the difference between what you owe on your car and its worth if it’s totaled in an accident. Most lenders require gap coverage until the vehicle is worth more than you owe.
- Roadside assistance: If you have car trouble on the side of the road, roadside assistance helps. Typical services include towing, fuel delivery, jump starts, tire changes, and locksmith services. (For more information, read our “Do you tip tow truck drivers?“).
- Rental car reimbursement. Rental car insurance coverage provides transportation if your car is being repaired under a covered claim. However, there are limits on how long the rental is covered and how much the insurance pays per day.
- New car replacement. Some insurers offer new car replacement coverage, which pays for a new vehicle if yours is totaled in a covered claim. However, restrictions vary by insurer, such as the age of the vehicle and replacement costs.
Not only do the specific coverages vary by insurer, but what those coverages include also varies. So, for example, while one insurer may have winching included in their roadside assistance coverage, another may not.
Read more: Top Roadside Assistance Provider
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Factors That Affect The Rates for Coverage You Need
Many factors impact auto insurance rates, and each insurance company weighs those factors differently. So, the same driver can get different rates from different companies.
Factors that affect car insurance rates include:
- Age: Young drivers pay higher rates due to a lack of experience behind the wheel. As drivers age and gain experience, auto insurance rates decrease. Learn more about how age affects the cost of auto insurance.
- Driving record: Drivers with accidents, tickets, and DUIs pay much higher car insurance rates than drivers with clean records. Fortunately, accidents and tickets stop affecting rates after three to five years. Learn more about how long does an accident stay on your record.
- Vehicle: New or expensive cars have higher insurance rates since they are more costly to repair. While the latest technology helps keep drivers safe, it also comes with a higher price tag to fix.
- Coverage: Minimum coverage costs less than full coverage. In addition, adjusting limits and deductibles also affects rates.
- Credit score: Drivers with a higher credit score tend to pay for damages themselves, avoid filing claims, and get lower insurance rates. However, some states, like California, don’t allow insurers to use credit to calculate rates.
- ZIP code: Areas with high crime, traffic, and extreme weather have higher car insurance costs. Insurers know your vehicle is more likely to be stolen or damaged in those areas. (For more information, read our “What are the most stolen cars in America?“).
Since each insurer calculates rates differently, it’s essential to shop around. Compare coverages and rates from numerous companies to find affordable auto insurance that meets your needs.
Choosing an Auto Insurance Deductible
Auto insurance deductibles are the amount you pay before your car insurance kicks in. While liability coverage doesn’t have a deductible, both collision and comprehensive coverages do. Drivers pick their deductible amounts, and the most commonly chosen deductible is $500.
Choosing a higher deductible means lower auto insurance rates. However, it also means more out-of-pocket expenses if your vehicle is damaged. Choose a deductible amount that you can afford to pay in case of an accident.
Final Thoughts on How Much Auto Insurance You Need
Drivers in most states need car insurance. Although New Hampshire doesn’t require car insurance, other states determine the minimum amount of coverage you need. As a result, the required coverages and limits vary significantly from state to state.
While minimum coverage allows you to drive legally, it doesn’t protect your vehicle. Full coverage combines minimum required coverages with collision and comprehensive coverage, offering you the most protection.
However, full coverage auto insurance rates are higher. In addition, you may be required to carry full coverage if you have a car loan or lease. Drivers can also add coverages, such as gap, roadside assistance, and rental car reimbursement, to meet their needs.
Now that you know the answer to how much auto insurance do you need, the best way to find cheap auto insurance is to compare quotes from multiple companies. Each auto insurance company weighs your personal factors differently, so rates will vary. Use our free quote comparison tool to find the cheapest rates for auto insurance in your area.
Read more: Can you negotiate your Auto Insurance rates?
Frequently Asked Questions
What factors should I consider when determining how much auto insurance coverage I need?
Several factors should be taken into account when deciding how much auto insurance coverage you require. These factors include:
- State requirements: Familiarize yourself with the minimum auto insurance coverage mandated by your state. It is essential to meet at least these minimum requirements.
- Vehicle value: Consider the current market value of your vehicle. Higher-value vehicles may require more comprehensive coverage to protect your investment.
- Personal assets: Assess the value of your personal assets, including your home, savings, and investments. It is recommended to have liability coverage that matches or exceeds your assets’ value to protect yourself in case of a lawsuit.
- Risk tolerance: Evaluate your risk tolerance and the likelihood of accidents or damage. If you are risk-averse, you may opt for higher coverage limits to ensure greater financial protection.
- Budget: Consider your budget and the premiums you can comfortably afford. Balancing your desired coverage with your financial constraints is crucial.
What is the minimum auto insurance coverage required by most states?
The minimum auto insurance coverage required varies by state. Typically, states mandate liability coverage in specific limits. Some states may also require uninsured/underinsured motorist coverage. It is crucial to check the specific requirements of your state to ensure compliance.
What are the different types of auto insurance coverage?
Auto insurance typically consists of the following types of coverage:
- Liability coverage: This covers bodily injury and property damage caused to others in an accident where you are at fault. It is usually split into two categories: bodily injury liability and property damage liability.
- Collision coverage: This covers the cost of repairing or replacing your vehicle in case of a collision, regardless of fault.
- Comprehensive coverage: This covers non-collision-related damages to your vehicle, such as theft, vandalism, natural disasters, or hitting an animal.
- Personal injury protection (PIP) or medical payments coverage: This covers medical expenses for you and your passengers in case of injury, regardless of fault.
- Uninsured/underinsured motorist coverage: This protects you if you are involved in an accident with a driver who has little or no insurance.
Is it possible to have too much auto insurance coverage?
While it’s important to have adequate coverage, it is possible to have more coverage than you need. Having excessive coverage may result in higher premiums, which can strain your budget. It’s essential to strike a balance between sufficient coverage and affordability.
Should I consider additional coverage options beyond the minimum requirements?
Yes, it’s generally advisable to consider additional coverage options beyond the minimum requirements. Additional coverage, such as collision and comprehensive, can provide enhanced protection for your vehicle. Personal injury protection and uninsured/underinsured motorist coverage can also offer valuable benefits in certain situations.
How can I determine the appropriate liability coverage limits?
Determining liability coverage limits depends on various factors, including your personal assets, risk tolerance, and state requirements. It’s recommended to have liability coverage that matches or exceeds the value of your assets to protect yourself from potential lawsuits.
Does my auto insurance coverage need change over time?
Yes, your auto insurance coverage needs may change over time. Factors such as acquiring a new vehicle, changes in your financial situation, or a move to a different state can impact your coverage requirements. It’s important to review your coverage periodically and make adjustments as necessary.
What are the three limits of auto insurance?
The three limits for liability insurance refer to how much insurance will cover after an accident. So 10/25/5 would mean $10,000 covered of injuries for one person, $25,000 covered of injuries per accident, and $5,000 covered of property damages.
Is $100 a month too much for auto insurance?
$100 a month is an average amount for a full coverage auto insurance policy.
Is $300 per month too much for auto insurance coverage?
$300 per month is expensive, so make sure that you are shopping around and comparing quotes on the coverage you need.
Compare Insurance Providers Rates to Save Up to 75%
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Aaron Englard
Insurance Premium Auditor
With over a decade of experience in insurance premium auditing, audit department management, and business audit representation, Aaron has developed a deep understanding of audit regulations, compliance requirements, and industry best practices. As the Founder & CEO of AdvoQates, he specializes in representing businesses during their audits to ensure accurate, transparent, and fair assessments ...
Insurance Premium Auditor
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.