What Car Insurance Your State Actually Requires You to Have

Every state requires at least liability coverage, but the exact amounts and additional types vary by location

All 50 states require you to carry liability insurance if you drive on public roads. Liability covers damage or injury you cause to someone else — their car, their medical bills, their property. The state sets a minimum dollar amount you must carry, and that amount differs by state. Some states also require uninsured motorist coverage or underinsured motorist coverage, which protects you if the other driver has no insurance or not enough.

A handful of states — currently New Hampshire and Virginia — do not require liability insurance if you can show the state you have enough money set aside to cover potential claims. For everyone else, you must carry a policy. What you are not required to carry by law includes collision, comprehensive, or gap insurance, though your lender will require these if you have a loan or lease on the car.

Key Takeaways

• Liability insurance is required in all 50 states, but the minimum amount you must carry depends on your state and sometimes on whether you caused an accident before.
• Most states list three liability limits: bodily injury per person, bodily injury per accident, and property damage per accident — for example, 25/50/25 means $25,000 per person, $50,000 per accident, $25,000 property damage.
• Uninsured and underinsured motorist coverage is required in some states and protects you if the other driver has no insurance or insufficient coverage.
• If you finance or lease a car, your lender will require collision and comprehensive coverage in addition to whatever your state mandates.
• Proof of insurance must be in your vehicle — either a paper card or digital copy on your phone — and you must show it to police if stopped.

Liability coverage amounts by state

States set their own minimum liability limits. Most require what is called a "split limit" — separate dollar amounts for bodily injury per person, bodily injury per accident, and property damage. A state might require 25/50/25, meaning $25,000 per person injured, $50,000 total per accident, and $25,000 for property damage. Other states use a "combined single limit," which is one dollar amount covering all three categories.

The minimums range widely. Some states set limits as low as 15/30/5 (Alabama, Kentucky, Mississippi, Missouri, New Mexico, Tennessee). Others require 25/50/25 or higher. A few states, including Maine and Oregon, require 30/60/30. Your state's Department of Motor Vehicles or insurance commissioner's office publishes the exact requirement for your location. If you cause an accident and your liability limit is too low to cover the damages, you are personally responsible for the difference.

Some states raise the minimum requirement if you have caused an accident or received certain traffic violations. These are called "SR-22" or "FR-44" requirements in most states, and they typically require you to carry higher limits for three years. Your insurance company files this form with the state on your behalf when you purchase a policy that meets the higher standard.

Uninsured and underinsured motorist coverage

Uninsured motorist coverage pays for your medical bills and lost wages if an uninsured driver hits you. Underinsured motorist coverage covers you when the other driver's liability limit is too low to pay your full claim. These are required in about 20 states and the District of Columbia. In states where they are not required, you can still purchase them, and many insurance agents recommend doing so because roughly 13 percent of drivers nationwide carry no insurance.

When these coverages are required, your state sets a minimum amount, usually matching or slightly lower than your liability limits. For example, if your state requires 25/50/25 liability, uninsured motorist might be required at 25/50. You can purchase higher limits if you want more protection. These coverages also protect you and your passengers if you are hit by a hit-and-run driver, since the at-fault driver is by definition uninsured.

What you are not required to carry

Collision insurance pays to repair or replace your car if you hit another vehicle or object, regardless of who is at fault. Comprehensive insurance covers theft, weather, vandalism, and animal strikes. Neither is required by state law. However, if you have a loan or lease on your car, your lender will require both as a condition of the loan. Once you own the car outright, you can drop these coverages if you choose, though doing so means you pay out of pocket for repairs.

Gap insurance covers the difference between what you owe on a car loan and what the car is worth if it is totaled. It is not required by law, but some lenders require it, and it is often bundled with collision and comprehensive. Medical payments coverage (sometimes called "med pay") is optional in all states and covers medical expenses for you and your passengers regardless of fault. Uninsured motorist property damage covers damage to your car caused by an uninsured driver; it is required in only a few states.

How to show proof of insurance

You must carry proof of insurance in your vehicle at all times. This can be a paper insurance card from your insurer, a digital image of the card on your phone, or a printout from your insurer's website. If a police officer stops you, you must show this proof. Driving without proof of insurance — even if you have a policy — can result in a fine in most states, separate from any fine for not having insurance at all.

Your insurance company sends you a new card each time your policy renews or changes. If you lose your card, you can request a replacement from your insurer by phone or through their website, usually within minutes. Many insurers also send digital cards by email or through a mobile app. Keep at least one copy in your glove compartment and one on your phone.

What happens if you drive without required insurance

Driving without the insurance your state requires is a traffic violation. Penalties vary by state but typically include fines ranging from $100 to $500 or more, suspension of your driver's license, and sometimes jail time for repeat violations. If you cause an accident while uninsured, you are personally liable for all damages, which can include the other driver's medical bills, lost wages, vehicle repairs, and pain and suffering. A lawsuit can follow, and a judgment against you can affect your wages and assets for years.

If you are caught driving uninsured, most states require you to file an SR-22 form (or FR-44 in Florida and Virginia) with the state for three years. This form, filed by your insurance company, certifies that you carry the required coverage. During this period, your insurance rates will be higher, and if your policy lapses even briefly, the insurer must notify the state, which can result in license suspension.

State-specific requirements you should verify

Because requirements vary by state, you need to know your own state's minimums. The National Association of Insurance Commissioners (NAIC) maintains a state-by-state breakdown, and your state's Department of Motor Vehicles website lists the exact amounts. Some states also have different requirements for different vehicle types — for example, commercial vehicles or motorcycles may have higher minimums.

If you move to a new state, your current policy may not meet the new state's requirements. Contact your insurance agent before or when ready after moving to confirm your coverage meets the new state's minimums. If it does not, your agent can adjust your policy. Some states also allow you a grace period (usually 30 days) to update your coverage after moving, but it is safer to do it right away.

Frequently Asked Questions

Do I need insurance if I only drive occasionally or keep my car parked?

Yes. If your car is registered and you have a driver's license, you must carry insurance to drive it on public roads. Some insurers offer "parked car" or "storage" policies at lower rates if you do not drive regularly, but you cannot legally drive without coverage. If you truly do not plan to drive, you can surrender your license plates and registration to avoid the requirement.

What if I cannot afford the minimum liability insurance?

All states require liability coverage, and there is no legal way around it if you drive. However, liability-only policies (without collision or comprehensive) are the cheapest option. You can also shop around — rates vary significantly between insurers for the same coverage. Some states have assigned risk pools that provide coverage to drivers who cannot find insurance elsewhere, though rates are higher. Contact your state's insurance commissioner's office for information about your state's program.

Does my insurance cover me if I drive someone else's car?

Usually, yes — most policies cover you when you drive any car with the owner's permission. However, the coverage follows the car, not the driver, so the car owner's policy is primary. If you regularly borrow a car, tell your insurance agent, as they may recommend adjusting your coverage. If you frequently drive someone else's car, that person's insurer may ask you to be listed as a driver on their policy.

Can I use my parent's insurance if I drive their car?

If you live with your parent and drive their car occasionally, you may be covered under their policy without being listed as a driver. However, if you drive regularly or have your own vehicle, you need your own policy or must be listed as a driver on theirs. Insurance companies ask about all household members and regular drivers, so be honest when getting a quote — not disclosing a driver can void your coverage if you cause an accident.

What is the difference between liability and uninsured motorist coverage?

Liability covers damage you cause to someone else. Uninsured motorist covers damage someone else causes to you when they have no insurance. If you hit an uninsured driver, your liability covers their damages. If an uninsured driver hits you, your uninsured motorist coverage covers yours. Both are important, but they protect you in different situations.