What states require car insurance?

Searching for the right car insurance coverage can be stressful. It’s not always fun to consider your options and crunch all the numbers to determine which company works best in terms of coverage and price. Still, car insurance is extremely important, and knowing you have the coverage you need can go a long way toward maintaining your peace of mind, and your financial security if you’re in an accident.

Aside from New Hampshire and Virginia, all states in the U.S. require that drivers carry a certain amount of car insurance coverage. Your state has specific rules and regulations concerning auto insurance. So, depending on where you live, you may need more or less coverage than a friend or relative living in a different state.

In addition to the car insurance coverage you must have, you can also choose additional coverage options to protect yourself and your vehicle when you’re on the road. While adding more types of coverage to a policy will make things more expensive, you may be grateful you did so if you’re ever in an accident and facing costly bills for the damages.

The best way to shop for car insurance is to compare car insurance quotes from several companies online. As you compare quotes, you’ll learn which companies offer the coverage you want at a price that fits your budget.

What are the different state minimum car insurance requirements?

Each state has specific laws concerning the types and amounts of car insurance coverage you need before you can drive. If you’re curious about how much insurance coverage you need, it depends on where you live. 

You may live in a state that requires low levels of coverage, or you may live in a state where you need more coverage. Usually, higher levels of coverage come with a higher price tag. So, when you compare your car insurance rates to the national average, you may pay more because of where you live.

As you can see, almost every state has a minimum liability insurance requirement. Liability insurance protects you if you cause an accident and injure someone or damage someone’s personal property. In addition, some states require personal injury protection (PIP), medical payments (MedPay) coverage, and/or uninsured/underinsured motorist coverage. 

If you’re unsure whether you have the right coverage for your state, review your car insurance policy. Most likely, the insurance company that sold you a policy knew you needed a certain amount of coverage and made sure you bought enough to drive legally. Still, it’s a good idea to review how much coverage you need and how much you have to make sure you’re not underinsured.

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What are the types of required car insurance coverage?

While the car insurance requirements in each state may differ, there are only a few types of mandatory coverage your state may require. Based on your state’s car insurance requirements, you may need one or more of the following coverages:

• Liability insurance
• Personal injury protection (PIP)
• Medical payments (MedPay)
• Uninsured/underinsured motorist coverage

Each coverage listed above offers some measure of protection so you’re not held liable or individually responsible for paying out of pocket if you cause a car accident and someone is hurt or property is damaged. If your state does not require PIP, MedPay, or underinsured/underinsured motorist coverage, you may want to consider purchasing these coverages anyway to be better protected on the road. 

Liability Car Insurance

Almost every state in the U.S. requires drivers to carry liability insurance. With liability coverage, you are protected if you cause an accident and injure someone or damage another person’s property.

Liability auto insurance has two standard elements: property damage and bodily injury coverage. With property damage liability, your insurance company will cover damage you cause to someone’s car or other property up to a certain dollar amount. With bodily injury liability, your insurance company will cover the medical bills associated with physical injuries you cause during an accident.

In understanding car insurance coverage, it’s important to know your state’s laws for liability coverage. Each state decides how much coverage drivers need. If you live in a state requiring higher liability coverage levels, your car insurance rates may be higher than the national average. Knowing your state’s requirements for coverage can also help you better understand car insurance quotes in your area.

Personal Injury Protection (PIP)

PIP coverage helps if you or anyone in your vehicle is injured during an accident. PIP insurance pays for visits to the doctor and other medical bills, and it may also help with lost wages associated with a covered accident. Some states require PIP insurance, but the coverage is available in all states in the U.S.

Medical Payments (MedPay)

MedPay coverage helps if you’re injured in an accident. The coverage is similar to PIP but does not help with lost wages or funeral costs. Instead, MedPay covers things like X-rays, doctor visits, hospital stays, surgery, and other medical bills associated with a covered accident. 

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage protects you if you’re in an accident someone else caused, but that individual does not carry the proper insurance. With this coverage, your insurance company will cover the damage to your vehicle up to your car’s actual cash value (ACV). In some cases, you may not have to pay your deductible before reaping your coverage benefits.

Is full coverage required in every state?

A full coverage policy, which includes collision and comprehensive car insurance, is not a requirement in any U.S. state to drive legally. Rather, full coverage offers drivers additional protection.

Collision car insurance covers you if you cause an accident and your vehicle is damaged. Comprehensive car insurance helps if your vehicle is damaged by inclement weather, wild animals, theft, or vandalism. While neither of these coverages is required in your state, you may want to add collision and comprehensive insurance to build a full coverage policy to ensure proper protection.

If you have a lease or loan on your vehicle, your lender may require that you carry full coverage car insurance. On the other hand, if you own your car outright, have an older car, or drive a car with a low ACV, you may not need full coverage on your vehicle. 

Which states don’t require car insurance? 

Only two states in the U.S. allow individuals to drive without an auto insurance policy. Still, there are stipulations in these states about car insurance and financial responsibility:

• New Hampshire: If you live in New Hampshire, you don’t have to buy insurance, but you will have to pay out of pocket for all damages if you cause an accident. If you choose to purchase a minimum coverage policy in New Hampshire, you’re required to carry $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability. New Hampshire drivers may have to purchase car insurance if they are found guilty of a major traffic violation. Learn more about New Hampshire car insurance requirements.
• Virginia: If you live in Virginia, you can pay a fee of $500 to be an officially uninsured motorist. If you pay this fee, you take on 100% of the financial responsibility if you’re ever in an accident. Still, buying a minimum coverage policy in Virginia will be less expensive than paying this $500 fee plus the cost of damages for even a minor accident. Learn more about Virginia car insurance requirements.

Some states in the U.S. allow drivers to purchase bonds rather than buying car insurance, but the bonds cost anywhere from $25,000 to $115,000. So for most drivers, it makes more sense to purchase a car insurance policy that meets their coverage needs and fits within any budgetary restrictions.

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States That Require Car Insurance: The Bottom Line

While most states in the U.S. require drivers to carry proper car insurance, state car insurance laws vary based on where you live. For example, you may live in a state that only requires low levels of bodily injury and property damage liability coverage. On the other hand, your state may require higher liability limits, along with PIP, MedPay, or uninsured/underinsured motorist coverage.

Consider adding collision and comprehensive car insurance to your policy if you drive a newer vehicle, an expensive vehicle, or a car under a loan or lease. A full coverage policy with collision and comprehensive insurance will help you stay protected even if you cause an accident. 

Lastly, as you shop for the best car insurance policy, remember to compare free auto insurance quotes from several car insurance companies before making a final decision on coverage. Comparing quotes can help you get the coverage you need without paying too much. 

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