What are the state minimum car insurance requirements in 2025?
However, every state but one requires drivers to get a minimum amount of liability coverage to legally get behind the wheel. It's intended to pay for injuries and damages to others if you are found at fault for an accident.
Many drivers add collision and comprehensive coverage to protect their own vehicles and passengers, but that can add to your premiums substantially. In 2025, the average annual cost of a liability-only car insurance policy was around $736, less than a third of the $2,680 average for full coverage.
All U.S. states except New Hampshire require drivers to have a minimum amount of liability car insurance,.
The specific amount varies by state but, keep in mind these limits are not adjusted for years at a time and may not be high enough to cover your fully if you're responsible for a collision. (California, Utah and North Carolina all raised their minimums in 2025.)
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.Geico auto coverage is available in all 50 states and Washington, D.C. It offers 16 discounts and a variety of optional add-ons, like roadside assistance, rental car reimbursement and mechanical breakdown insurance.Progressive offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim.
As a rule of thumb, you should have enough liability insurance to cover your net worth, or the sum of your assets minus your debts and liabilities.
If you have a high net worth, an umbrella insurance policy can increase your liability coverage to $1 million or more.
Each state sets its own minimum limit: In New York, for example, the minimum is $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident and $10,000 in property damage liability per accident. This is often expressed as "25/10/10"
Here are the minimum amounts of liaibility car insurance required in each U.S. state and Washington, D.C.:About half of U.S. states have other policy requirements, mainly to offset the cost of underinsured and uninsured drivers.
Twenty-two states require drivers to have some sort of coverage to account for uninsured (UM) or underinsured (UIM) motorists.
No-fault states also require personal injury protection (PIP) or medical payment (MedPay) coverage, both of which cover medical expenses for you and your passengers after an accident, regardless of who is at fault.
If you're considering a state minimum car insurance policy, here are some potential benefits and drawbacks you should be aware of.
State minimum car insurance is the least amount of liability coverage you can have and legally drive in your state. Some states have other requirements, like personal injury protection, MedPay coverage and coverage for uninsured or underinsured motorists.
States with "no-fault" laws requires drivers to have personal injury protection (PIP) or MedPay to cover the cost of medical expenses for themselves and their passengers, regardless of who is responsible for the accident.
New Hampshire doesn't have a blanket auto insurance requirement, though it still does require that drivers demonstrate proof of financial responsibility. You can do that with a insurance policy, a bond or a cash deposit with the he state treasurer. If you opt for insurance, the requirement is 25/50/25.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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