Minimum Car Insurance Requirements by State
Every state sets its own minimum auto liability limits — and several raised them for 2025–2026. Select your state to see the current requirements and what drivers there actually pay.
📌 PIP included unless rejected in writing
Average premiums in Texas
CarInsurance.com / Quadrant Information Services 2026 rate study (full coverage: 100/300/100, $500 deductibles; 40-year-old driver). National average full coverage: $2,578/yr.
How to read liability limits like 25/50/25
The three numbers are thousands of dollars: bodily-injury coverage per person, bodily-injury per accident, and property damage. 25/50/25 means $25,000 per injured person, $50,000 total per accident, and $25,000 for the other party's vehicle and property.
Recent changes to know: California moved to 30/60/15 in 2025 (its first increase since 1967), Virginia to 50/100/25, Utah to 30/65/25, North Carolina to 50/100/50 (mid-2025), New Jersey to 35/70/25 and Hawaii to 40/80/20 in 2026.
Why minimum coverage is usually not enough
The average new car costs around $48,000 — a $15,000 or $25,000 property-damage limit is exhausted by one totaled vehicle, and a single hospitalization can blow through a $25,000 bodily-injury limit. Anything above the limits comes out of your assets.
Most advisors recommend at least 100/300/100 for anyone with savings or a home; the jump from minimum to 100/300/100 often costs less than $30/month. Uninsured-motorist coverage matters too: roughly one in seven US drivers is uninsured.
Frequently asked questions
What does 25/50/25 mean on car insurance?
$25,000 bodily-injury coverage per person, $50,000 bodily-injury total per accident, and $25,000 property-damage coverage — the amounts your insurer pays others when you're at fault.
Which states don't require car insurance?
New Hampshire doesn't mandate insurance (you must prove financial responsibility after an accident), and Virginia's old pay-a-fee option was eliminated in 2024 — insurance is now required there.
What is PIP and which states require it?
Personal Injury Protection pays your own medical costs regardless of fault. It's required in no-fault states including Florida, Michigan, New York, New Jersey, Massachusetts, Minnesota, and about half a dozen others.
Is minimum coverage cheaper than full coverage?
Substantially — nationally, minimum coverage averages roughly $800–900/year vs about $2,600 for full coverage. But minimum coverage pays nothing for your own car; it only covers what you do to others.
This tool provides general information and estimates only — it is not insurance advice, and requirements can change. Verify current rules with your state insurance department or a licensed agent. Data verified July 2026.