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Yahoo
08-03-2025
- Automotive
- Yahoo
These are the minimum car insurance requirements in every state
No matter which U.S. state you call home, you probably need auto insurance to be roadworthy. Coverage requirements vary, but every state (save one) requires some form of liability insurance, and some require additional coverage such as personal injury protection (PIP) or uninsured motorist coverage. Here's a look at which coverage is required by law in each state. Here's when each type of coverage kicks in and what it covers. Note that these coverages work differently depending on whether you're involved in an accident in an at-fault or no-fault state. No-fault auto insurance requires you to file a claim with your own insurance regardless of who is responsible for the accident. Learn more: What is no-fault car insurance and how does it work? Bodily injury liability insurance protects you financially if you're found responsible for an accident, and the other driver or one of their passengers is injured. This insurance can cover the injured party's healthcare costs, lost wages, or legal counsel if you're sued after an accident. It can also cover funeral costs. Learn more: What is liability car insurance and how much do you need? Property damage liability insurance, the second component of liability coverage, protects you financially if you're at fault in an accident and the other driver's vehicle needs repairs. It can also cover you if you hit an object, like a fence or mailbox. One of the most common minimum liability limits required by states are $25,000 in bodily injury liability coverage per person; $50,000 in bodily injury coverage per accident; and $25,000 in property damage liability coverage per accident. This is written as 25/50/25 in policies. If you're involved in an accident with an at-fault driver who doesn't have enough insurance to cover your vehicle repairs or health care costs, uninsured/underinsured motorist (UIM) coverage helps close the gap. Note that in many states, insurance companies are required to offer UIM coverage, but you can usually sign a waiver to drop or reduce the coverage. Uninsured/underinsured motorists are generally broken down into two parts, similar to liability insurance: Uninsured/underinsured motorist bodily injury Uninsured/underinsured motorist property damage It can pay for your medical bills and those of your passengers, as well as repairs to your car after an accident. A few states, such as South Carolina and Texas, may require policyholders to pay a small deductible before UIM coverage kicks in. If you live in a no-fault auto insurance state, you may need Personal Injury Protection (PIP) coverage, also called no-fault insurance. This coverage can pay for your medical bills or those of your passengers, lost wages if you or your passengers are unable to work after the accident, and essential services like childcare or housekeeping. PIP kicks in no matter who's found at fault in an accident. Medical payments coverage, also called medical expense or Medpay coverage, is typically available in tort states (aka states that aren't no-fault). It works similarly to PIP, but it's more limited. For instance, Medpay will cover your or your passenger's medical expenses but won't cover lost wages or essential services. Learn more: Most common types of car insurance explained Some form of car insurance is required in all U.S. states except New Hampshire. Florida and New Jersey, which are no-fault states, don't require bodily injury liability insurance but do mandate property damage liability coverage and personal injury protection (PIP) coverage. Even though car insurance isn't required in New Hampshire, drivers still need to provide proof of financial responsibility in the event of an at-fault accident. While lax coverage requirements may seem like a boon, you could end up paying thousands of dollars out of pocket to cover repairs to someone else's car or pay for their medical care from injuries. If you can't afford to pay these expenses, your license may be suspended. For this reason, having liability coverage is smart, even if it's not required in your state. Minimum auto insurance coverage varies in price based on several factors, including the insurance company you choose, your location, the type of car you drive, your driving record, and more. The average cost of a liability-only policy from Progressive ranges from $80 to $157 per month. But that cost could be lower or higher depending on the factors mentioned. Whether you opt for minimum or full coverage car insurance depends on your needs and preferences. It makes sense to get full coverage if you drive a newer car. But if your car is older and has high mileage, dropping to a minimum coverage policy could make sense. Just remember that if you opt for basic insurance that only covers your liability in an at-fault state, be prepared to be financially responsible for repairing or replacing your own car or any medical bills you or your passengers incur. Driving without adequate car insurance is illegal in most U.S. states and could result in hefty fines. Car insurance also provides valuable financial protection if you're in an accident, and if you don't have a policy, you could end up paying significant expenses out of pocket. Lapses in coverage can also be costly since you could be required to file an SR-22. This is a statement of financial responsibility that usually means you'll have to pay more for auto insurance or risk having your coverage canceled. Most states have steep fines or penalties for driving without insurance as a deterrent. Auto insurance financially protects both you and other drivers in the event of an accident. Without it, you can be held personally liable in court for damage and injuries caused in an at-fault accident. It's important to note that in addition to state laws, lenders also usually require auto insurance to protect the value of the car until you've paid off the loan. This article was edited by Tim Manni Kaz Weida contributed to this article
Yahoo
04-02-2025
- Automotive
- Yahoo
Are electric cars more expensive to insure?
Whether you're considering an electric car for the cutting-edge technology, the fuel cost savings or the environmental benefits, it's important to understand the specifics about EV insurance. Despite their higher cost, there are more electric vehicles on the road than ever. Insurance companies, in turn, have responded with customized offerings. Here's what you need to know about how an EV auto insurance policy differs from traditional car insurance coverage — and what cost differences you should expect. This embedded content is not available in your region. You won't be required to purchase a special electric vehicle auto insurance policy just because you drive an EV. Car insurance coverage is the same whether you have a gas-powered car or electric car, and there isn't any special policy you are mandated to buy outside of your state's minimum required auto insurance coverage. Depending on the coverage options you choose and even where you live, EV auto policies will include some combination of: Liability coverage, including property damage liability and bodily injury liability coverage, that pays out for others harmed in an accident you cause. Collision coverage, to repair or replace your vehicle if you're involved in an accident where someone else isn't the at-fault driver. Comprehensive coverage for other-than-collision damage, such as vandalism, theft or weather-related events. Uninsured motorist/underinsured motorist, in case you're hit by another driver who doesn't have auto insurance or whose limits aren't enough to cover your losses. Personal injury protection (PIP), to cover your medical bills and other expenses from an accident like lost wages or home health care. Medical payments (Medpay) coverage, to help with things like co-pays, medical deductibles, prescriptions, and procedures following an accident. Select EV drivers have the option of specialized EV auto insurance policies. This is especially true for drivers of certain Tesla models in select states, who can purchase coverage directly through the manufacturer. This Tesla auto insurance offers many of the same coverage options mentioned above in addition to gap insurance/auto loan protection in some areas. In the future, carriers may begin offering EV auto insurance policies that also protect the vehicle's high voltage battery, at-home charging stations, and other charging equipment and parts that aren't covered by typical policies. While not always the case, you can usually count on EV insurance premiums being higher than those for conventional, gas-powered vehicles. The actual cost of your coverage will depend on your driving record, age, gender, location, credit history, coverage options, and the vehicle you drive. There are also some special considerations and features of EVs that can impact your car insurance rates. Here are a few to keep in mind: Electric vehicles tend to have newer and more updated technology, which can be costly to replace and difficult to source. While the purchase cost of EVs has been gradually declining, these vehicles are still more expensive on average than comparable gas-powered vehicles. Because of the higher cost of replacement, carriers may charge more for full coverage, including comprehensive and collision coverage. If your EV is involved in an accident, the high-voltage battery, which powers the electric motor, could be damaged and need replacing. Depending on your vehicle, battery-pack replacement can cost tens of thousands of dollars. Parts for certain EVs may be limited due to small manufacturing processes. This can make the repair process notably more expensive and result in long delays. Not all repair shops are equipped to work on EVs, so your vehicle may need to go to a special shop following an accident. This can be more costly for your insurance company. If you own a hybrid vehicle, you'll encounter some of the same issues with auto insurance rates as EV owners. Hybrid cars have a high-voltage battery that maintains the charge on the vehicles' electric motors. Repair and replacement can be expensive, and that cost is reflected in the policyholders' premiums. On the other hand, hybrid vehicles like the Toyota Prius are self-charging, so you won't need to worry about installing a charger at your home. When shopping around for a car insurance policy for your electric vehicle, keep these things in mind to get the right coverage and snag the right price: Research and compare car insurance companies that specialize in EV coverage; these carriers may have the best network of appraisers, parts suppliers, and body shops if and when you need repair. Some offer EV-related discounts that will save you money. For example, Farmers offers a discount to customers in California who drive electric or hybrid vehicles. When comparing carriers, ask whether the policy covers battery replacement, home charging stations or loss of use coverage, and if other additional coverages are available. While this isn't common yet, you may find a carrier that covers accessories and auxiliary costs involved with your electric vehicle. Be sure to take advantage of rebates, tax credits, discounts, and incentives offered to EV drivers. These might include extra savings for vehicles with autonomous/self-driving or special security features. Request car insurance quotes from multiple carriers — including your renters or homeowners insurance provider. Bundling policies with one carrier is a tried-and-true way to get the cheapest rates. Lastly, read your policy terms and conditions carefully so you understand what is and is not covered. You may want to add supplemental coverage or increase your existing coverage limits to better protect yourself. Read more: With car insurance rates soaring, here are 9 ways to save money Electric vehicles are growing in popularity because of their low emissions and fuel savings. But EVs are still new enough that replacing or repairing them is very costly. Because of this, you should expect to pay more for insurance. This embedded content is not available in your region.
