Minimum car insurance requirements are set at the state level, meaning the coverage you need to drive legally depends entirely on where your vehicle is registered. These requirements vary widely, not just in dollar amounts but in the types of coverage required. Knowing your state’s minimum standards is essential for legal compliance, but it’s equally important to understand what those minimums do, and don’t, protect you from.

What Is Minimum Car Insurance?

Minimum car insurance refers to the lowest level of auto insurance coverage required by your state law. You must carry this coverage to legally operate, register, or maintain a vehicle in your name. The goal of these requirements is to make sure all drivers can take financial responsibility for any damage or injuries they cause on the road.

The foundation of most minimum requirements is liability insurance, which helps cover the cost of damage or injury to others when you’re at fault in an accident. This does not include damage to your own vehicle or injuries to yourself.

Most states define minimum liability insurance using three numbers:

• $25,000 of bodily injury liability per person
• $50,000 of bodily injury liability per accident
• $25,000 of property damage liability

These limits are the maximum your insurer will pay per claim. If the actual damages exceed your coverage, you’re responsible for paying the difference.

Other Coverages Some States Require

• Personal Injury Protection (PIP): Required in many “no-fault” states like Florida, Michigan, and New York. Pays for medical expenses, lost wages, and essential services for you and your passengers, regardless of who caused the accident.
• Uninsured/Underinsured Motorist Coverage (UM/UIM): Required in some states like New York, North Carolina, and Illinois. Steps in if you’re hit by someone who has no insurance or doesn’t have enough to cover your expenses.
• Medical Payments Coverage (MedPay): Required or optional in some “at-fault” states. Helps pay for medical bills for you and your passengers after an accident, no matter who was at fault.
• Property Protection Insurance (PPI): Unique to Michigan, where drivers are required to carry PPI to pay for damage caused to others' property (such as buildings or stationary objects).

Why Every State Has Different Requirements

There’s no national standard for car insurance because each state balances its own priorities between driver affordability, accident risk, and claims cost trends. States with high crash rates, heavy urban traffic, or large uninsured populations may require more protection than rural states with fewer incidents.

State minimums are set with the intention of keeping roads safer and ensuring that accident victims aren’t left without compensation, but they’re often based on outdated cost assumptions. Medical bills, car repair costs, and legal expenses have increased dramatically in recent years, while many state minimums haven’t kept up.

Examples of State Minimum Requirements (2025 Snapshot)

• California: 15/30/5 – One of the lowest minimums nationwide. Only $5,000 for property damage.
• Texas: 30/60/25 – A more balanced set of limits with higher injury protection.
• Florida: Requires only $10,000 in PIP and $10,000 in property damage liability. Bodily injury liability isn’t required unless you’ve previously caused a serious accident.
• New York: 25/50/10 plus PIP and uninsured motorist coverage
• Ohio: 25/50/25
• Alaska: 50/100/25 – One of the highest minimums in the country
• Michigan: Requires PIP and PPI, with bodily injury liability limits starting at 50/100

The Problem With Minimum Coverage

Yes, minimum coverage allows you to register your car and drive legally, but that doesn’t mean it will cover everything in an accident.

Here’s what minimum coverage typically does not include:

• Repairs to your own vehicle (you’d need collision for that)
• Damage from weather, theft, or vandalism (that’s comprehensive coverage)
• Rental car reimbursement, towing, or roadside assistance
• Higher liability costs if your accident exceeds your coverage limits

How to Find Your State’s Requirements

• Your state’s Department of Motor Vehicles (DMV) website
• Your Department of Insurance or State Insurance Commissioner
• A licensed insurance agent or insurance company operating in your state

Most insurers will automatically offer you at least the legal minimum for your ZIP code when you request a quote, but it’s still smart to double-check the limits before signing up.

When Minimum Coverage Might Be Enough

• You’re driving an older vehicle with little resale value
• You don’t drive often, or mostly drive short distances
• You’re just looking to get legal after a lapse or need temporary coverage
• You have no significant assets or income that could be at risk in a lawsuit

Conclusion

State minimum car insurance is designed to keep drivers legal, not necessarily protected. While it satisfies the law, it rarely covers the full cost of a serious accident or major damage. Medical bills, repairs, and legal fees can easily go beyond what a minimum policy pays—and if that happens, the rest comes out of your pocket.

Understanding what your state requires is a necessary starting point, but it’s just as important to think about what you’d actually need if something went wrong. The right policy isn’t just the one that meets the legal minimum. It’s the one that matches your risks, your car, and your financial situation. If you can afford a bit more now, the right coverage can save you a lot more later.