Auto Insurance: State Mandates And Your Coverage

Car insurance requirements vary across different states in the US. While most states have minimum requirements for liability coverage, there are several other types of coverage that may be mandated in a specific state. The sole exception is Florida, which only requires liability coverage for property damage, in addition to PIP coverage.

In nearly all states, a minimum amount of liability insurance is required. This coverage helps pay for any injuries or damages caused in a car accident, including those of the other driver and their passengers.

In addition to liability insurance, other types of car insurance that may be required in certain states include uninsured/underinsured motorist (UM/UIM) coverage, personal injury protection (PIP), and medical payments coverage.

Minimum liability insurance requirements

The minimum liability insurance requirements vary from state to state in the US. This type of insurance covers bodily injury liability and property damage liability. In other words, it covers other people's physical damages and damage to the other driver's property in an accident.

• Alabama: Bodily injury- $25,000 (per person), $50,000 (per accident), and $25,000 property damages
• Alaska: Bodily injury- $50,000 (per person), $100,000 (per accident), and $25,000 property damages
• Arizona: Bodily injury- $15,000 (per person), $30,000 (per accident), and $10,000 property damages
• Arkansas: Bodily injury- $25,000 (per person), $50,000 (per accident), $25,000 property damages, and $5000 medical
• California: Bodily injury- $15,000 (per person), $30,000 (per accident), and $5000 property damages
• Colorado: Bodily injury- $25,000 (per person), $50,000 (per accident), and $15,000 property damages
• Connecticut: Bodily injury- $25,000 (per person), $50,000 (per accident), and $25,000 property damages
• Delaware: Bodily injury- $25,000 (per person), $50,000 (per accident), and $10,000 property damages. Delaware also requires add-on no-fault insurance coverage of $15,000 (per person) and $30,000 (per accident)
• Florida: Bodily injury- $10,000 (per person), $20,000 (per injury), property damages- $10,000 (per person), and $30,000 (per accident)
• Georgia: Bodily injury- $25,000 (per person), $50,000 (per accident), and $25,000 property damages
• Hawaii: Bodily injury- $20,000 (per person), $40,000 (per accident), and $10,000 property damages

It is important to note that these are the state minimum requirements. Depending on the value of your vehicle and the state you live in, you may want or need additional coverage.

Uninsured motorist coverage

There are two main types of uninsured motorist coverage: Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). UMBI covers medical expenses for injuries caused by an uninsured driver, including your own injuries and those of your passengers. It may also cover non-medical expenses such as pain and suffering, lost wages, and other damages. UMPD, on the other hand, covers repairs to your vehicle and other property damaged in the accident, such as your house, fence, or personal items. It may also cover the diminished value of your car if it is worth less after the accident.

In addition to uninsured motorist coverage, some states also offer Underinsured Motorist (UIM) coverage. This type of coverage protects you if you are in an accident with a driver whose insurance policy limits are not sufficient to cover your vehicle damages or bodily injury expenses. UIM is also divided into two categories: Underinsured Motorist Bodily Injury (UIMBI) and Underinsured Motorist Property Damage (UIMPD). These coverages work similarly to their uninsured motorist counterparts, paying for medical expenses and property damage, respectively.

The availability and specifics of uninsured and underinsured motorist coverage can vary from state to state. In some states, uninsured motorist coverage for property damage (UMPD) may not cover hit-and-run incidents, while in others it is mandatory to have this coverage. It is important to review your policy and understand the limits and exclusions of your uninsured and underinsured motorist coverage.

Personal injury protection

PIP insurance covers medical expenses for you and your passengers after a car accident. It can also cover your health insurance deductible. If you're injured in an accident and can't work, PIP can help replace lost wages. This benefit applies even if you're self-employed and need to hire temporary workers.

PIP coverage can also help pay for funeral, burial, or cremation expenses after a fatal car accident. It can also help replace lost income for surviving dependents if the insured passes away in an auto accident. Additionally, PIP can help pay for services you'd normally perform, such as childcare and housecleaning.

PIP insurance won't cover the other driver's injuries in a collision. It also won't cover injuries sustained while committing a crime, such as fleeing the police, or while being paid to drive.

States With Mandatory PIP Coverage

Some states have no-fault insurance laws, requiring all drivers to file a claim with their insurance company after an accident, regardless of who caused it. In these states, PIP coverage is mandatory:

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Utah
• Vermont

States Where PIP Is Optional

In some states, PIP coverage is optional:

• Texas
• Tennessee
• South Carolina
• South Dakota
• Washington
• West Virginia
• Wisconsin
• Wyoming

States Without PIP Coverage

Some states do not offer PIP coverage:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Georgia
• Illinois
• Indiana
• Iowa
• Louisiana
• Maine
• Maryland
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Mexico
• North Carolina
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island

Medical payments coverage

MedPay is not available in every state, but in the states that don't offer it, personal injury protection (PIP) coverage is usually available instead. MedPay can help pay for medical expenses for you or your passengers, regardless of who is at fault for the accident. This includes hospital visits, nursing services, ambulance and EMT fees, surgeries, and dental procedures.

MedPay limits typically range from $1,000 to $10,000, depending on the state and insurer. It's a good idea to carry coverage equal to your health insurance deductible, so you can use MedPay to cover your out-of-pocket medical expenses. If you don't have health insurance, consider carrying a higher MedPay limit to help pay your medical bills after an accident.

Collision and comprehensive coverage

Collision coverage is an optional insurance coverage that pays to repair or replace your vehicle if it's involved in an accident with another vehicle or a stationary object. It is not legally required in any state, but your lender may require it if you're leasing or financing your vehicle. Collision coverage is available for most types of vehicles, including cars, motorcycles, boats, and RVs.

If you own your vehicle outright and choose not to carry collision coverage, you will be responsible for the cost of repairs or replacement if you're involved in an accident. On the other hand, if you lease or finance your vehicle, collision coverage can provide valuable protection for your investment.

Collision insurance typically covers:

• Single-vehicle accidents, such as hitting a guardrail or telephone pole
• Collisions with other vehicles
• Collisions while your vehicle is parked (including hit-and-runs)
• Rollover accidents

It's important to note that collision coverage does not apply to collisions with animals or damage caused by events outside of your control, such as a tree falling on your vehicle. These types of incidents are usually covered under comprehensive coverage.

Comprehensive coverage is another type of optional insurance that complements collision coverage. It covers damage to your vehicle caused by disasters other than collisions, such as contact with animals, natural disasters, theft, and fallen objects. Comprehensive coverage is significantly more affordable than collision coverage, costing around $134 per year on average.

When deciding whether to purchase collision or comprehensive coverage, it's important to consider the value of your vehicle, your ability to pay for repairs or a replacement out of pocket, and whether your vehicle will be in storage for extended periods. For older vehicles, it may not make economic sense to purchase either type of coverage.

Frequently asked questions