When it comes to car insurance, there is no “one size fits all” approach that works. Not only does the coverage you need depend on your personal situation, but it also depends on where you live. Each state has its own requirements for the minimum insurance drivers should carry.
If you've been asking, "How much liability insurance do I need?" most states require at least $50,000 in bodily injury liability coverage and $25,000 in property damage liability coverage. Some states may require different amounts or different types of coverage.
When you're ready to get set up with all the required auto insurance in your state, a local independent insurance agent can help you. These agents are familiar with the minimum car insurance requirements in your area and will help you build a complete policy at a great rate. But first, you can use our guide to state minimum car insurance requirements to find out where to start.
Key Takeaways - How Much Car Insurance Do I Need in 2026?
Almost every state requires you to carry at least liability car insurance at a minimum.
You might be required to carry additional types of auto insurance, such as personal injury protection (PIP) by your state.
The most commonly recommended liability coverage limit is 100/300/100, though you may want more depending on your circumstances.
Failure to carry your state's minimum mandated auto insurance can result in penalties, such as state fines or license suspension.
Working with a local independent insurance agent is strongly recommended, as they're familiar with state auto insurance requirements and can shop and compare quotes from several carriers near you to find the best deal on your policy.
Car Insurance Required in Each State in 2026
Most U.S. states require bodily injury liability and property damage liability coverage, which pays for the other party’s medical and property damage costs after an accident you're at fault for. Many states also require additional coverages, like personal injury protection (PIP), to help cover your medical expenses and those of your passengers after an accident, regardless of fault. PIP can also cover lost wages and other related expenses.
New Hampshire is the only state without minimum car insurance liability requirements. In the Granite State, drivers must meet the state’s financial responsibility requirements. Your license may be suspended until you pay for accident-related damage.
Here is a more detailed breakdown of the required car insurance minimums by state for 2026. While these minimums are the lowest required amounts, you may want additional coverage based on your own needs and any unique factors.
| State | Minimum Bodily Injury Liability Coverage (Per Person/Per Accident) |
Minimum Property Damage Liability Coverage | Other Minimum Coverage Required |
|---|---|---|---|
| Alabama | $25,000 / $50,000 | $25,000 | — |
| Alaska | $50,000 / $100,000 | $25,000 | — |
| Arizona | $25,000 / $50,000 | $15,000 | — |
| Arkansas | $25,000 / $50,000 | $25,000 | — |
| California | $30,000 / $60,000 | $15,000 | UM/UIM if purchased: $30,000/$60,000 |
| Colorado | $25,000 / $50,000 | $15,000 | — |
| Connecticut | $25,000 / $50,000 | $25,000 | UM/UIM: $25,000/$50,000 required |
| Delaware | $25,000 / $50,000 | $10,000 | PIP: $15,000/$30,000 |
| Florida | No BI required | $10,000 | PIP: $10,000 required |
| Georgia | $25,000 / $50,000 | $25,000 | — |
| Hawaii | $40,000 / $80,000 | $20,000 | PIP: $10,000 required |
| Idaho | $25,000 / $50,000 | $15,000 | — |
| Illinois | $25,000 / $50,000 | $20,000 | UM/UIM: $25,000/$50,000 required |
| Indiana | $25,000 / $50,000 | $25,000 | UM: $25,000/$50,000 required |
| Iowa | $20,000 / $40,000 | $15,000 | — |
| Kansas | $25,000 / $50,000 | $25,000 | PIP: $4,500 medical; UM: $25,000/$50,000 |
| Kentucky | $25,000 / $50,000 | $25,000 | PIP: $10,000 required |
| Louisiana | $15,000 / $30,000 | $25,000 | — |
| Maine | $50,000 / $100,000 | $25,000 | UM/UIM: $50,000/$100,000; MedPay: $2,000 |
| Maryland | $30,000 / $60,000 | $15,000 | PIP: $2,500; UM: $30,000/$60,000 |
| Massachusetts | $25,000 / $50,000 | $30,000 | PIP: $8,000; UM: $25,000/$50,000 |
| Michigan | $50,000 / $100,000 | $10,000 | PIP required: $50K, $250K, $500K, or unlimited |
| Minnesota | $30,000 / $60,000 | $10,000 | PIP: $40,000; UM/UIM: $25,000/$50,000 |
| Mississippi | $25,000 / $50,000 | $25,000 | — |
| Missouri | $25,000 / $50,000 | $25,000 | UM: $25,000/$50,000 required |
| Montana | $25,000 / $50,000 | $20,000 | — |
| Nebraska | $25,000 / $50,000 | $25,000 | UM/UIM: $25,000/$50,000 required |
| Nevada | $25,000 / $50,000 | $20,000 | — |
| New Hampshire | $25,000 / $50,000 | $25,000 | Insurance optional, but financial responsibility amounts apply |
| New Jersey | $35,000 / $70,000 | $25,000 | PIP: $15,000; UM/UIM: $35,000/$70,000 |
| New Mexico | $25,000 / $50,000 | $10,000 | — |
| New York | $25,000 / $50,000 | $10,000 | PIP: $50,000; UM: $25,000/$50,000 |
| North Carolina | $50,000 / $100,000 | $50,000 | UM/UIM: $50,000/$100,000 required |
| North Dakota | $25,000 / $50,000 | $25,000 | PIP: $30,000; UM/UIM: $25,000/$50,000 |
| Ohio | $25,000 / $50,000 | $25,000 | — |
| Oklahoma | $25,000 / $50,000 | $25,000 | — |
| Oregon | $25,000 / $50,000 | $20,000 | PIP: $15,000; UM: $25,000/$50,000 |
| Pennsylvania | $15,000 / $30,000 | $5,000 | MedPay: $5,000 required; UM available |
| Rhode Island | $25,000 / $50,000 | $25,000 | — |
| South Carolina | $25,000 / $50,000 | $25,000 | UM: $25,000/$50,000 required |
| South Dakota | $25,000 / $50,000 | $25,000 | UM/UIM: $25,000/$50,000 required |
| Tennessee | $25,000 / $50,000 | $25,000 | — |
| Texas | $30,000 / $60,000 | $25,000 | — |
| Utah | $30,000 / $65,000 | $25,000 | PIP: $3,000; UM/UIM if purchased: $30,000/$65,000 |
| Vermont | $25,000 / $50,000 | $10,000 | UM/UIM: $50,000/$100,000 required |
| Virginia | $50,000 / $100,000 | $25,000 | UM/UIM: $50,000/$100,000 required |
| Washington | $25,000 / $50,000 | $10,000 | — |
| West Virginia | $25,000 / $50,000 | $25,000 | UM: $25,000/$50,000 required |
| Wisconsin | $25,000 / $50,000 | $10,000 | UM: $25,000/$50,000 required |
| Wyoming | $25,000 / $50,000 | $20,000 | — |
| Washington D.C. | $25,000 / $50,000 | $10,000 | UM: $25,000/$50,000 required |
A local independent insurance agent can also help you determine your state's minimum car insurance requirements.
Why State Minimums Are Often Not Enough
Recommended car insurance coverage limits are typically 100/300/100 for liability coverage. A 100/300/100 car insurance policy provides $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident, and $100,000 in property damage liability coverage per incident. State minimum car insurance is not really enough for many drivers, and these specific limits are often recommended regardless of state minimums.
It's also helpful to consider your car insurance coverage based on your personal asset level. For example, if you have under $50,000 in personal assets, a 50/100/50 or state minimum auto policy is commonly recommended. If you have between $50,000 and $500,000 in assets, a 100/300/100 policy is recommended. Finally, if you have assets totaling more than $500,000, a 250/500/250 auto policy is recommended. You also might want to consider adding a personal umbrella insurance policy.
Consider if you caused an accident that totaled more than $100,000 in damages and had an auto policy with 25/50/25 limits. You would be responsible for paying $50,000 out of your own pocket to cover the remaining damage. Fortunately, upgrading from a 25/50/25 auto policy to 100/300/100 limits costs an average of just $150-$300 more per year, which can be much less than covering the remaining costs of a major accident yourself.
The Types of Auto Insurance Coverage You May Need
Beyond liability insurance, there are several types of auto coverage that may be required or recommended, depending on the state you live in. The auto insurance coverage you should have will depend on those requirements and the level of protection you choose, as well as your budget.
Common car insurance coverage types include:
- Uninsured/underinsured motorist coverage: This helps cover expenses if you or another designated driver on your policy is hit by an underinsured or uninsured driver who is found at fault. It will also help cover expenses caused by a hit-and-run accident or if you’re hit as a pedestrian.
This coverage type is required in several states, and it’s a wise option to have because it helps minimize your out-of-pocket expenses. If you opt for this coverage, consider purchasing protection equal to or greater than your total liability coverage. - Collision coverage: This pays for damage to your car from a collision with another object, regardless of fault. It’s rarely required by states, but it can be a beneficial supplement to your main policy. It may also be required if you drive a financed vehicle.
If the other driver is at fault, your insurance provider may seek damages from their insurance company. If they’re successful, you may also be reimbursed for your deductible amount. Collision coverage is typically equal to the market value of your vehicle. - Comprehensive insurance: This pays for damage to your car caused by non-collision events, such as a flood or theft. It may also cover damage to your windshield. Comprehensive coverage is also rarely required by states, but it may be required if you drive a financed vehicle. It also rounds out the protection you have for your vehicle.
For this reason, your auto loan lender may require it until your car is paid off. Comprehensive policy limits should be comparable to the market value of your vehicle. - Personal injury protection (PIP): PIP is required by several states in the US. It offers more robust medical and injury-related expense protection for you and any passengers in your car if an accident occurs. It may help cover medical payments, lost income, funeral expenses, and more.
If you purchase PIP, it’s generally recommended to seek a policy that’s equal to or greater than your state’s suggested liability protection. Remember, PIP helps cover your costs related to injury or physical harm, whereas bodily injury liability helps cover the other driver’s costs. - Medical payments insurance: This covers medical and funeral expenses for you and your passengers after an accident, regardless of fault. This coverage is required in Maine, New Hampshire, and Pennsylvania. In all other states, this coverage is optional.
- Guaranteed auto/asset protection: Also known as gap insurance, this policy option can help close ‘gaps’ in your coverage if you lease or finance your vehicle and it is totaled or stolen. Though states don’t require gap insurance, lenders and dealers may require it.
Remember that collision and comprehensive insurance policies typically only cover the market value of your car, not what you paid when you bought it. Cars depreciate quickly, and it’s not uncommon for there to be a period where you owe more than the car is currently worth.
If you owe more on your vehicle than your collision or comprehensive policies can pay, gap insurance helps cover the difference. - Emergency roadside assistance: This is typically available as an add-on to your primary insurance policy. With this coverage, you may receive roadside assistance for little to no cost. It may include towing, fuel delivery, jump starts, tire replacements, lockout assistance, and more.
While not required, it’s often fairly affordable to add to your main policy, and it can come in handy if you find yourself in a pinch. - Mechanical breakdown insurance: Another supplemental policy option, mechanical breakdown insurance can help cover the costs of repairs not covered by your main insurance. This includes unexpected mechanical failures and breakdowns for all mechanical components.
This option doesn’t usually cover intentional damage, wear and tear, or damage caused by improper use or care of the vehicle. - Windshield insurance/full glass coverage: If you don’t have comprehensive coverage, or if your comprehensive policy doesn’t cover your windshield, then you may benefit from windshield insurance or full glass coverage.
Windshields are easily damaged and can cost hundreds to repair/replace, but windshield or full glass replacement coverage can help cover those costs. It’s not usually required, but it may save you cash in the long run. - Rental car insurance: This insurance is specifically designed to help cover risks while you’re renting a vehicle. There are several types of rental car coverage that may be offered to you: loss damage waiver, personal accident insurance, and personal effects coverage.
Loss damage waivers waive your financial responsibility for associated damage and losses if the rental car is harmed or stolen. Personal accident insurance can help cover your and your passengers’ medical costs. Personal effects coverage may reimburse you for stolen belongings.
If you have existing homeowners or auto insurance policies, they may help cover some or all of these risks. Check with your local independent insurance agent to see whether they offer it and whether additional rental car coverage is recommended. - Umbrella insurance: This covers liability costs that remain after an underlying policy's limits are exhausted. For example, if you're at fault for an accident that caused $500,000 in liability, but your policy's limit is $300,000, you'd be responsible for the extra $200,000 unless you had umbrella coverage.
Umbrella insurance typically comes in increments of $1 million and is highly affordable to add to your coverage. If you had existing liability coverage of $500,000, adding a $1 million umbrella policy would increase your total limit to $1.5 million. A personal umbrella policy for auto liability is highly recommended for high-asset drivers.
An independent insurance agent can help you build a complete auto policy with every type of coverage you may need, including those beyond your state's required minimums.
When Your Lender Requires More Coverage
The contract you sign when financing or leasing a vehicle often requires you to have full coverage car insurance, which includes liability, comprehensive, and collision coverage in addition to any other minimum state-mandated coverage. If you've been asking, "What car insurance do I need with a car loan?" most lenders require liability limits of at least 100/300/100 regardless of what your state mandates.
Additional car insurance required when financing a vehicle can include gap coverage, which pays for the difference in the amount still owed on an auto loan or lease and the vehicle's actual cash value (ACV) after a covered total loss. Gap insurance is often required or strongly recommended for financed vehicles during the first three years of a loan, when drivers may owe more than the car's ACV after a total loss.
How Much Does Car Insurance Cost in 2026?
The average cost of car insurance in 2026 is $2,697 per year, or about $225 per month. Minimum coverage averages $820 per year, or about $68 per month. Maine currently has the cheapest car insurance average of $1,687 per year, while Florida has the most expensive average of $3,884 per year for full coverage.
But as with many types of insurance, the cost of car insurance depends on several factors, including state requirements, car type and condition, and any supplemental coverage options. Your age, driving history, and credit history may also influence your rates. Discounts may be available, such as for staying accident-free or taking a safe driving course.
Speak with your independent insurance agent to get the coverage that’s right for you, and use our car insurance calculator to estimate your car insurance monthly costs.
FAQs About How Much Car Insurance You Need
How much car insurance do I legally need?
Each state sets its own minimums, most commonly bodily injury liability and property damage liability. Most states require at least 25/50/25 limits for liability coverage. See the state minimums table above for your state's specific requirements. New Hampshire is the only state that does not require insurance, though financial responsibility standards still apply.
Is the state minimum car insurance enough coverage?
Not usually. State minimum coverage limits were established years ago and have not kept pace with real accident costs. For example, a single hospital stay can cost more than $50,000. Most independent insurance agents and financial experts recommend liability coverage limits of at least 100/300/100. If you cause an accident that surpasses your limits, you will owe the difference out of your own pocket.
What does 100/300/100 car insurance mean?
This refers to $100,000 per-person bodily injury liability, $300,000 per-accident bodily injury liability, and $100,000 in property damage liability per incident. It is the most commonly recommended baseline for drivers with moderate assets.
Do I need full coverage if I finance or lease my car?
Yes. Most lenders require both comprehensive and collision coverage while you finance or lease a vehicle. They may also set a maximum deductible. Gap insurance is often required or strongly recommended, especially in the first three years when you may owe more than the car's actual cash value in the event of a total loss.
How much does car insurance cost per month in 2026?
The national average is $225 per month for full coverage and $68 per month for minimum coverage in 2026. However, car insurance costs vary significantly by state, age, driving history, and vehicle type. Florida has the highest full-coverage average ($3,884 per year), while Maine has the lowest ($1,687 per year).
Should I get uninsured motorist coverage if it's not required in my state?
Yes, for many drivers. Most independent insurance agents recommend it regardless of state requirements. About 15% of U.S. drivers are uninsured. UM/UIM coverage protects you when hit by an at-fault driver with no insurance or insufficient coverage. The cost of this coverage is typically less than $100 per year. It's required in 22 states, and optional but strongly recommended everywhere else.
Get Help Now from an Independent Insurance Agent Near You
When you're ready to get set up with all the required auto insurance in your state, no one's better equipped to help than a local independent insurance agent. These agents can shop and compare car insurance quotes and coverage options from multiple carriers in your area to find the best blend of coverage and cost. They're also familiar with each state's minimum car insurance requirements, so they'll ensure you walk away with all the coverage you need to avoid penalties.
Sources
https://www.iii.org/article/what-auto-insurance
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https://www.3rinsurance.com/what-does-100-300-100-insurance-coverage-mean
https://www.moneygeek.com/insurance/auto/coverage/
https://www.bankrate.com/insurance/car/average-cost-of-car-insurance/
https://www.kiplinger.com/personal-finance/car-insurance/is-your-car-driving-up-your-insurance-premium