Minimum Coverage Auto Insurance Explained
Last Updated on December 30, 2025
Minimum coverage auto insurance is the least amount of car insurance you can buy to meet your state’s legal requirements (and nothing more). It’s popular with budget-minded drivers because it’s usually the cheapest way to stay legal on the road.
However, “minimum coverage” is not the same everywhere. Each state sets its own rules for what’s required and how much you must carry. Some states require only basic liability insurance, while others add mandatory coverages like PIP (no-fault medical coverage). And in states with unique systems—like Michigan—minimum coverage can still be relatively expensive. (More context: Why is car insurance so expensive in Michigan?)
Below you’ll find (1) the types of coverage that can count toward your state’s minimum requirements, (2) the minimum limits in every state, and (3) a realistic look at whether minimum coverage is enough protection.
Key Takeaways
- Minimum coverage auto insurance is the least coverage you can buy to meet your state’s legal requirements—usually liability, plus required add-ons like PIP or UM/UIM in some states.
- Minimum requirements vary widely by state, so the “cheapest legal policy” in one state may be very different (and more expensive) in another.
- Minimum coverage typically does not include collision or comprehensive, meaning it usually won’t pay to repair your own car after a crash.
- State minimum limits can be too low for serious accidents—if damages exceed your limits, you may be personally responsible for the difference.
Different Types of Auto Insurance That May Be Required
States can require different auto insurance types. Here are the most common coverages that show up in state minimum requirements.
Liability Coverage
Liability coverage pays for injuries and property damage you cause to others in an at-fault accident—up to your policy limits. Most states express liability minimums in a format like 25/50/25, meaning:
- Bodily injury liability per person
- Bodily injury liability per accident
- Property damage liability per accident
Important: Liability coverage protects other people—not your car.
Uninsured and Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage (UM/UIM) helps protect you if you’re hit by someone who has no insurance or not enough insurance. In many places, it can also apply to hit-and-run accidents.
Depending on your state, UM/UIM may include:
Personal Injury Protection
Personal injury protection (PIP) is no-fault coverage that helps pay for medical bills for you and your passengers after an accident. In many states, PIP can also help with lost wages and services needed due to injuries (and sometimes things like rehabilitation costs).
PIP is strongly associated with no-fault states, where drivers typically turn to their own policy first for injury-related costs.
Medical Payments
Medical payments coverage (MedPay) can also help pay medical bills after an accident (regardless of fault), but it typically does not include lost wages or other broader benefits like PIP may. If you have strong health insurance, you may decide MedPay is unnecessary—but it can still help with deductibles and copays.
Property Protection Insurance
Property protection insurance (PPI) is a Michigan-specific required coverage that helps pay for damage your vehicle causes to certain property within Michigan. If you’re shopping in Michigan, you may also see the term PLPD—here’s a breakdown: PLPD auto insurance in Michigan.
What Minimum Coverage Usually Does Not Include
Minimum coverage policies usually do not include protection for your own car. If you want coverage for your vehicle, you typically add:
- Collision coverage (damage to your car after a crash)
- Comprehensive coverage (theft, weather, fire, animal hits, vandalism, etc.)
Minimum Insurance Requirements by State
Now that you know the coverage types, here are the minimum required limits in all 50 states and Washington, D.C. (You can also compare this with our internal guide here: state-by-state auto insurance requirements.)
| State | Minimum Liability (BI/BI/PD) | Other Required Coverage (If Any) |
|---|---|---|
| Alabama | 25/50/25 | None |
| Alaska | 50/100/25 | None |
| Arizona | 25/50/15 | None |
| Arkansas | 25/50/25 | None |
| California | 30/60/15 | None |
| Colorado | 25/50/15 | None |
| Connecticut | 25/50/25 | 25/50 UM/UIM |
| Delaware | 25/50/10 | 15/30 PIP |
| Florida | $10,000 PDL* | $10,000 PIP |
| Georgia | 25/50/25 | None |
| Hawaii | 20/40/10 | $10,000 PIP |
| Idaho | 25/50/15 | None |
| Illinois | 25/50/20 | 25/50 UM |
| Indiana | 25/50/25 | 25/50 UM 50 UIM |
| Iowa | 20/40/15 | None |
| Kansas | 25/50/25 | 25/50 UM/UIM $4,500 PIP |
| Kentucky | 25/50/25 | $10,000 PIP |
| Louisiana | 15/30/25 | None |
| Maine | 50/100/25 | 50/100 UM/UIM $2,000 MedPay |
| Maryland | 30/60/15 | 30/60/15 UM |
| Massachusetts | 25/50/30 | 20/40 UM $8,000 PIP |
| Michigan | 50/100/10 | Six PIP options (minimum $50,000 for insureds on Medicaid) |
| Minnesota | 30/60/10 | 25/50 UM/UIM $40,000 PIP |
| Mississippi | 25/50/25 | None |
| Missouri | 25/50/25 | 25/50 UM/UIM |
| Montana | 25/50/20 | None |
| Nebraska | 25/50/25 | 25/50 UM/UIM |
| Nevada | 25/50/20 | None |
| New Hampshire** | 25/50/25 | 25/50 UM $1,000 MedPay |
| New Jersey | 25/50/25*** | 25/50 UM/UIM $15,000 PIP |
| New Mexico | 25/50/10 | None |
| New York | 25/50/10 | 25/50 UM $50,000 PIP |
| North Carolina | 50/100/50 | 50/100/50 UM/UIM |
| North Dakota | 25/50/25 | 25/50 UM/UIM $30,000 PIP |
| Ohio | 25/50/25 | None |
| Oklahoma | 25/50/25 | None |
| Oregon | 25/50/20 | 25/50 UM/UIM $15,000 PIP |
| Pennsylvania | 15/30/5 | $5,000 PIP |
| Rhode Island | 25/50/25 | None |
| South Carolina | 25/50/25 | 25/50/25 UM |
| South Dakota | 25/50/25 | 25/50 UM/UIM |
| Tennessee | 25/50/25 | None |
| Texas | 30/60/25 | None |
| Utah | 30/60/25 | $3,000 PIP |
| Vermont | 25/50/10 | 50/100/10 UM |
| Virginia | 50/100/25 | None |
| Washington | 25/50/10 | None |
| Washington, D.C. | 25/50/10 | 25/50/5 UM |
| West Virginia | 25/50/25 | 25/50/25 UM |
| Wisconsin | 25/50/10 | 25/50 UM |
| Wyoming | 25/50/20 | None |
*Florida note: Florida’s legal minimum is PDL and PIP. Bodily injury liability isn’t required for most drivers, but it may be required in certain situations.
**New Hampshire note: New Hampshire does not generally require car insurance, but these are the minimum limits if you buy a policy to satisfy the state’s financial responsibility rules.
***New Jersey note: New Jersey has multiple policy types and future law changes can increase minimums, so it’s worth confirming your exact required limits before you buy.
Exceptions to State Minimum Insurance
Most drivers must buy at least the minimum required coverage in their state. However, there are a few exceptions and “special cases” worth knowing about.
New Hampshire Residents
New Hampshire is the best-known exception: it generally does not require drivers to carry auto insurance. However, you can still be required to show proof of financial responsibility in certain situations (for example, after a serious violation), and many drivers choose to carry insurance anyway to protect their finances. Here’s a deeper breakdown: Is car insurance required in New Hampshire?
If you’re required to carry proof of coverage due to a major violation (like a DUI), minimum coverage rules can change quickly—so check your DMV and your insurer before you drive uninsured.
Virginia Residents
Virginia used to be a well-known exception because drivers could pay a fee instead of carrying insurance. That option is no longer available—Virginia now requires insurance for drivers. You can verify current requirements and minimum limits here on the Virginia DMV site: Insurance Requirements (Virginia DMV).
Self-Insurance and Proof of Financial Responsibility
Some states allow alternatives to a traditional insurance policy, like self-insurance for qualifying drivers/fleets, a cash deposit, or a surety bond. These options are usually designed for high-net-worth drivers or businesses—not most households—and they can be risky if you don’t have the funds to pay claims yourself.
If you’re considering alternatives, start here: proof of financial responsibility. And if you’re wondering whether a bond can replace a policy, read: can a surety bond replace actual car insurance?
How Much Does Minimum Coverage Cost?
Minimum coverage is usually the cheapest legal option, but prices still vary dramatically by state, driver profile, and insurer. Even within the same state, two companies can quote very different premiums for the same minimum limits.
To show what “minimum coverage pricing” can look like in the real world, here are example national median rates for liability-only coverage from major insurers. These figures are approximations and are meant as a benchmark—not a quote.
| Company | Approx. Annual Premium (Liability-Only) | Approx. 6-Month Premium |
|---|---|---|
| GEICO | $486/year | $243/6 months |
| State Farm | $524/year | $262/6 months |
| Travelers | $529/year | $265/6 months |
| Progressive | $631/year | $316/6 months |
| USAA (eligible military families) | $366/year | $183/6 months |
Tip: If minimum coverage is still too expensive, shop with at least 3–5 insurers, ask about discounts (multi-car, bundling, defensive driving, low mileage), and make sure your mileage and garaging address are accurate.
Is Minimum Coverage Insurance Enough?
Minimum coverage is the cheapest way to stay legal, but it often isn’t enough auto insurance for a serious accident. State minimum limits can be surprisingly low compared to modern medical bills, vehicle repair costs, and lawsuits.
If you cause a crash and damages exceed your limits, you may have to pay the difference yourself—and you could be sued. (Related: what happens when property damage exceeds insurance coverage?)
Example: Pennsylvania’s minimum liability requirement is 15/30/5. If you’re at fault in a major crash, injuries can easily exceed $15,000 for a single person—meaning you could be responsible for the remaining bills after your policy maxes out.
If you own a home, have savings, or simply want better protection, consider raising your liability limits above the minimum. And if your car is financed or leased (or you just want your own vehicle protected), you’ll likely want full coverage (liability + comprehensive + collision).
FAQs on Minimum Coverage Auto Insurance
Final Word on Minimum Coverage Auto Insurance
Minimum coverage auto insurance keeps you legal, but it’s often bare-bones protection. The right choice depends on your budget, your vehicle, your state’s rules, and how much financial risk you can safely absorb.
If you’re shopping for the lowest legal rate, compare quotes from multiple insurers—and consider pricing out a slightly higher liability option too. The increase in protection is sometimes cheaper than you’d expect.
Leave a Reply