In a typical year, Americans with good credit scores and clean driving records pay around $800 dollars for car insurance. There are no-claim bonus discounts, but these don’t cover the cost of most comprehensive auto insurance policies. In fact, those who have bad credit or accident history could be paying up to 1% more than someone without any mishaps in their background–an extra $80 per month on some policies.
The “state farm car insurance” is a company that provides car insurance. It’s the company people pay the most for their car insurance.
In most places, you must obtain automobile insurance to drive lawfully, with the minimum amount established by your state of residency. Because requirements for liability insurance, property damage, medical expenditures, uninsured/underinsured coverage, and personal injury protection, among other things, we should refer to “auto insurance minimum coverages” in plural.
This article will offer a broad summary based on the most up-to-date information. Verify information for your specific state to ensure you meet the necessary vehicle insurance needs.
Take a look at Alabama’s vehicle insurance requirements: 25/50/25. This implies that the state needs $25,000 in bodily injury liability insurance per person, $50,000 in total bodily injury liability insurance for all injuries sustained in a single accident, and $25,000 in property damage liability insurance for each accident. This is the overall framework we’ll use when adding extra insurance information about a state as it becomes available.
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Alabama
Car Insurance Requirements: 25/50/25
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Alaska
Car Insurance Requirements: 50/100/25
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Arizona
Car Insurance Requirements: 25/50/15
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Arkansas
Car Insurance Requirements: 25/50/25
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California
Car Insurance Requirements: 15/30/5
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Colorado
Car Insurance Requirements: 25/50/15
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Connecticut
- Car Insurance Requirements: 25/50/25
- Uninsured/underinsured motorist coverage of $25,000 per person and $50,000 per accident is also required by the state.
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Delaware
- Car Insurance Requirements: 25/50/10
- Additional Requirements: Personal injury protection is also required by the state (PIP)
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Florida
Car insurance requirements include a $10,000 property damage liability per accident and a $10,000 personal injury protection (PIP) coverage.
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Georgia
Car Insurance Requirements: 25/50/25
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Hawaii
Car Insurance Requirements: 20/40/10 and $10,000 PIP
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Idaho
Car Insurance Requirements: 25/50/15
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Illinois
- Car Insurance Requirements: 25/50/20
- Additional Requirements: Policies are required by state law to offer coverage for uninsured motorists.
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Indiana
- Car Insurance Requirements: 25/50/25
- Additional Requirements: This state additionally requires $50,000 in bodily injury uninsured motorist coverage.
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Iowa
Car Insurance Requirements: 20/40/15
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Kansas
- Car Insurance Requirements: 25/50/25
- Additional Requirements: Personal injury protection and uninsured/underinsured motorist coverage ($25,000 per person/$50,000 per accident) are required in addition to uninsured/underinsured motorist coverage ($25,000 per person/$50,000 per accident) (PIP or no-fault)
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Kentucky
Car Insurance Requirements: 25/50/25
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Louisiana
Car Insurance Requirements: 15/30/25
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Maine
- Car Insurance Requirements: 50/100/25
- Additional requirements include uninsured motorist coverage of $50,000 per person and $100,000 per accident, as well as $2,000 in medical payment coverage.
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Maryland
Car Insurance Requirements: 30/60/15
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Massachusetts
Car Insurance Requirements: 20/40/5 and $8,000 PIP
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Michigan
Car Insurance Requirements: 20/40/10
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Minnesota
- Car Insurance Requirements: 30/60/10
- Additional requirements include $25,000 in uninsured/underinsured motorist coverage per person, $50,000 per accident, and $40,000 in personal injury protection (PIP).
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Mississippi
Car Insurance Requirements: 25/50/15
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Missouri
- Car Insurance Requirements: 25/50/25
- Additional Requirements: $25,000 in uninsured motorist coverage per person and $50,000 per accident are also required.
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Montana
Car Insurance Requirements: 25/50/20
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Nebraska
- Car Insurance Requirements: 25/50/25
- Plus $25,000 in uninsured/underinsured motorist coverage per person and $50,000 per accident.
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Nevada
Car Insurance Requirements: 25/50/20
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New Jersey is a state in the United States.
- Car Insurance Requirements: 15/30/5
- Additional Requirements: $15,000 in Personal Injury Protection (PIP).
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New Mexico is located in the United States.
Car Insurance Requirements: 25/50/10
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New York
Car Insurance Requirements: 25/50/50 and $50,000 PIP
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North Carolina is a state in the United States.
- Car Insurance Requirements: 30/60/25
- Additional Requirements: The state additionally has special requirements for uninsured/underinsured motorists’ insurance coverage.
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North Dakota is a state in North America.
Car Insurance Requirements: 25/50/25
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Ohio
Car Insurance Requirements: 25/50/25
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Oklahoma
Car Insurance Requirements: 25/50/25
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Oregon
- Car Insurance Requirements: 25/50/20
- Additional Requirements: $25,000 in uninsured motorist coverage per person and $50,000 per accident are also required., and $15,000 PIP
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Pennsylvania
- Car Insurance Requirements: 15/30/5
- Additional Requirements: $5,000 in medical payments is required.
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Rhode Island is a state in the United States.
Car Insurance Requirements: 25/50/25
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South Carolina is a state in the United States.
- Car Insurance Requirements: 25/50/25
- Plus $25,000 in uninsured coverage per person, $50,000 per accident, and $25,000 in property damage coverage.
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South Dakota is located in the United States.
- Car Insurance Requirements: 25/50/25
- Additional Requirements: $25,000 in uninsured motorist coverage per person and $50,000 per accident are also required.
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Tennessee
Car Insurance Requirements: 25/50/15
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Texas
Car Insurance Requirements: 30/60/25
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Utah
Car Insurance Requirements: 25/65/15
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Vermont
Car Insurance Requirements: 25/50/10
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Washington
Car Insurance Requirements: 25/50/10
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Washington, D.C. is the capital of the United States.
- Car Insurance Requirements: 25/50/10
- Additional requirements include $25,000 in uninsured motorist coverage per person, $50,000 in accident coverage, and $5,000 in property damage coverage.
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West Virginia is a state in the US.
- Car Insurance Requirements: 25/50/25
- Additional Requirements: $25,000 in uninsured motorist coverage per person and $50,000 per accident are also required., and $25,000 property damage
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Wisconsin
- Car Insurance Requirements: 25/50/10
- Additional Requirements: $25,000 in uninsured motorist coverage per person and $50,000 per accident are also required.
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Which States Have No Insurance Requirements?
You’ll note that New Hampshire and Virginia aren’t included on this list. That’s because, although they have laws on the matter, they don’t mandate automobile insurance per se.
If you don’t have auto insurance in Virginia, you’ll have to pay a $500 fine, which is more than the state’s average liability insurance premium.
However, this amount does not include any insurance coverage for the driver. As a result, if they are at fault in an accident, they are liable for any damages they cause, as well as recompense for any medical injuries and/or property damage.
In New Hampshire, there are no penalties for driving without insurance, but the at-fault motorist is accountable for any damages incurred as a result of the collision.
If a motorist chooses to get automobile insurance in either state, the minimum coverage is 20/50/25 in both.
How to Get Car Insurance in 5 Easy Steps is highly recommended.
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Understanding the Coverage Requirements
The following are definitions for important vehicle insurance words related to coverages:
- When a driver’s actions or inactions create an accident, they are said to be “at blame.”
- If you’re at fault in an accident, liability insurance covers for the other driver’s/drivers’ vehicle repairs (property damage) and medical costs (bodily injuries).
- Uninsured and underinsured motorist coverage covers both drivers and passengers in the event that the other driver has little or no automobile insurance. The body insurance element of the policy pays for medical expenses, while the property damage portion covers car repairs.
- Personal injury protection: This helps pay for the insured driver’s and passengers’ accident-related medical bills, regardless of who is at fault.
Liability vehicle insurance may also cover lost wages, legal bills in the event of a lawsuit, and/or burial expenses. Property damage coverage might extend beyond car repairs to include, for example, a fence, bicycle, shed, or structure that has been damaged in an accident.
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State Minimum Car Insurance Requirements Exceptions
New Hampshire and Virginia, as previously stated, take a distinct approach to vehicle insurance needs. In Kentucky, a motorist may have 25/50/25 coverage or a policy with a $60,000 maximum as an alternative.
In Maine, for example, you may choose from the above-mentioned coverage options or a $125,000 policy. Because each state is different, it’s wise to double-check what insurance is needed by law and what choices are available where you reside.
In more than half of the states, a motorist may choose to acquire a state-issued bond instead of vehicle insurance. The amount of the bond varies by state (although none of them are modest), and these money are utilized if you cause an accident.
If the state compensates an injured person (as a result of an accident in which you were at fault), you must promptly refund the money to the state, plus interest. Because the bond is linked to the driver rather than the vehicle, it covers any vehicle operated by the bondholder.
How Does Car Insurance Work? is a good place to start.
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Beyond Automobile Insurance Minimum Insurance Coverage
So far, this article has focused on the types of insurance that are required by law. But how much automobile insurance do you actually require? That’s an other issue altogether.
Even if your state does not mandate comprehensive coverage, if you are financing or leasing a car, the lender will almost certainly demand you to have it. This insurance covers damage to a car that isn’t the result of an accident. Weather damage, theft or vandalism, colliding with an animal, and other damages are examples.
Even if a car is paid off, it’s frequently a good idea to have this coverage in your policy since the cost is cheap compared to the cost of repair or replacement if it’s damaged or stolen.
Collision coverage extends beyond collision damage to include expenditures incurred if you collide with a tree or structure, or if you strike a pothole, for example. If paying for losses out of pocket would be difficult or if your risk tolerance is low, this coverage can be worth considering.
Then there’s guaranteed auto protection (GAP), which may safeguard you while the value of your car depreciates. GAP would reimburse the difference between what you owe on the automobile and its real cash worth if it was wrecked in an accident or stolen. This enables you to pay off your loan or lease and then get any remaining funds from your insurance company. To add the optional GAP, you typically require complete motor insurance.
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Getting Cheaper Car Insurance
Here are some suggestions to help you save money on auto insurance:
- Get quotes. Using an online comparison tool can make your search especially efficient. The Insurance Information Institute recommends that you get at least three quotes. To check out the insurer’s financial health, you can use Standard & Poor’s, AM Best, or another rating service — and/or contact your state insurance department to see if there are any complaints about them.
- Ask your existing insurance provider about any reductions they may be able to give. To maintain your business, they may offer you a greater premium.
- Check to see if you qualify for any savings based on your driving record, vehicle anti-theft features, carpooling/remote working, going paperless with bills, or other methods.
- Find out how much you may save by bundling your auto insurance with additional policies. For example, you may be able to combine auto insurance coverage for many cars, or you may be able to combine homeowners or renters insurance.
- Consider increasing your deductible, which is the amount you must pay out of cash before your insurance kicks in to settle a claim. This may help you save money on your insurance premiums, but if you have an accident, you may have to utilize your personal funds before the insurer covers your claim.
- Reevaluate your insurance requirements. You may not need all of the coverages you originally needed if your automobile is older. However, you must weigh what you may save on premiums now against what might happen tomorrow if an accident or other covered event happens. Of course, you’ll need to bear in mind the state’s minimal vehicle insurance requirements.
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The Remainder
Most states have minimum auto insurance requirements (and even if they don’t, there are still coverage limitations that must be satisfied). This article discusses the many kinds of insurance policies available as well as the minimum coverage levels required by each state.
More information is available at:
MediaFeed.org syndicated this story, which first appeared on SoFi.com.
Insurance not available in all states. Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc. SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership. Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. This article is not intended to be legal advice. Please consult an attorney for advice.
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