State Minimum Auto Insurance

state minimum auto insurance
It is not only important to get good automobile insurance but more importantly it is the law. Wherever you may live, there are state minimum auto insurance laws that you need to abide. Most people know that carrying insurance coverage is mandatory but few people are aware of their exact state’s mandates. While most insurance agents know the numbers off the bat, you should become familiar with the insurance laws in your state, so you know exactly the type and amount of policy to get.

Just as important, you should carefully consider the amount of coverage you select and not just go with the absolute cheapest plan available. If you are charged and found liable for a significant auto accident, for example, your cheap minimum state liability policy might get you in much trouble. A good lawyer will sue you and possibly put a lien on your assets, including your bank account. Get the proper amount of protection, which may be much more than your state’s required mandates and stay protected.

State Minimum Car Insurance Basics
Each state has a regulatory branch the sets forth auto insurance laws. State auto insurance laws vary by state, but they all have some common elements. Your state will have minimum requirements for liability coverage, this will cover to a limit, damage done to another person property and bodily harm in a crash you were at-fault for causing.

There are three separate limits must be satisfied.

*  Bodily Injuries for each person– Provides payments for medical costs related to injuries sustained to others, as a result of an accident caused by you.
*  Bodily Injuries per incident– The limit per accident.
*  Property Damage– Provides payments for property damaged that you caused (usually a person’s car) in an at-fault accident.

Minimum per each person
Your state might require $15,000 minimums for each person in bodily injury, up to $30,000 limits per accident and $10,000 for costs related to property damage. Agents will refer to these numbers in order as a set. In the example above, it would be written and referred to in conversation like 15/30/10. Check out your state’s minimum coverage requirements below.

  1. Florida:  10/20/10
  2. Louisiana:  10/20/10
  3. Oklahoma:  10/20/10
  4. Ohio:  12.5/25/7.5
  5. California:  15/30/5
  6. Delaware:  15/30/5
  7. New Jersey:  15/30/5
  8. Pennsylvania:  15/30/5
  9. Nevada:  15/30/10
  10. Arizona:  15/30/10
  11. Georgia:  15/30/10
  12. Massachusetts:  20/40/5
  13. West Virginia:  20/40/10
  14. Hawaii:  20/40/10
  15. Alabama:  20/40/10
  16. Michigan:  20/40/10
  17. Connecticut:  20/40/10
  18. Texas:  20/40/15
  19. Maryland:  20/40/15
  20. Illinois:  20/40/15
  21. Iowa:  20/40/15
  22. Idaho:  20/50/10
  23. Kansas:  25/50/10
  24. Indiana:  25/50/10
  25. Missouri:  25/50/10
  26. Kentucky:  25/50/10
  27. Montana:  25/50/10
  28. New Mexico:  25/50/10
  29. Wisconsin:  25/50/10
  30. Washington:  25/50/10
  31. New York:  25/50/10
  32. Oregon:  25/50/10
  33. Tennessee:  25/50/10
  34. Vermont:  25/50/10
  35. Colorado:  25/50/15
  36. Arizona:  25/50/15
  37. Virginia:  25/50/20
  38. Wyoming:  25/50/20
  39. South Dakota:  25/50/25
  40. North Dakota:  25/50/25
  41. South Carolina:  25/50/25
  42. Rhode Island:  25/50/25
  43. New Hampshire:  25/50/25
  44. Nebraska:  25/50/25
  45. Mississippi:    25/50/25
  46. Utah:  25/65/15
  47. Minnesota:  30/60/10
  48. North Carolina:  30/60/25
  49. Alaska:  50/100/25
  50. Maine:  50/100/25

State Auto Insurance Minimums and Expenses
It is important to realize that lower insurance mandates don’t always equal lower overall costs. There are several states with very low auto insurance minimums that are at the top of the most expensive to insure list; this is because there are so many factors used to determine risk. These includes some traffic accidents per area, weather incidents like hurricanes, population and overall car thefts in a given region. So even though you might live in a state like Florida with really low liability limits, you will likely be paying more for that coverage.

Other states with lower minimums like New Jersey and Louisiana, also have higher premiums than the national average. This can be partially attributed to the high rate of auto theft in New Jersey and the frequent litigious activity, post-accident in Louisiana. So even though you might get cheap state car insurance, you can get sued and held liable for thousands. So it’s so important to get the most protection you can afford, as it might save you a lot of money if you get into a serious crash. Always remember to protect your assets with the proper amount of insurance coverage.

There are also states with lower overall insurance costs that have more stringent insurance requirements.
States like Minnesota, Utah, Carolina and Utah all have some of the highest minimum coverage limits. These states boast some of the lowest rates on automobile insurance, however. Stats show that drivers in these areas get in fewer accidents and have their cars stolen at a less frequent rate. Lower limit mandated insurance policies in areas like New Jersey that have overall higher rates are put in place to help average residents afford the minimum insurance. If the standards were higher, many low-income people would be priced out of vehicle coverage altogether.

Get the Best Insurance Policy you can Afford

Many people mistakenly think that buying the state minimum automobile insurance is all the coverage they need. If you have personal assets like cash in the bank, a second car and also a boat. Moreover, are found liable in an at-fault accident, you could be hit with a substantial monetary judgment. Your personal property could even be subject to a lien, this is why it is critical to getting the maximum insurance coverage you can afford for your asset preservation.

If you have assets over $100,000, consider taking a comprehensive policy

If you have multiple homes, several cars, and small business to protect, consider getting an umbrella policy that covers everything for $1 Million or more. State minimum auto insurance should be reserved for those who can only afford this essential coverage and who do not have serious assets to protect. Get a free auto insurance quote on your phone or tablet in just five minutes. Get started comparing online rates from leading carriers and select the plan you want.