How much car insurance do you need?

Most drivers should carry liability limits of 100/300/100, well above state minimums in most states, matching uninsured/underinsured motorist coverage (UM/UIM) and comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible. with a deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. you can afford if you have to pay it. If you live in a no-fault state, you will also need personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. (PIP) and possibly medical payments (MedPay) coverage

Coverage	Recommended limits	What it covers
Liability	100/300/100	Bodily injury and property damage when you are at fault in an accident
Uninsured/Underinsured motorist	100/300/100	Damages and injuries to you and your car when the at-fault driver is uninsured or doesn't have enough insurance
Comprehensive	N/A, deductible applies	Damage to your vehicle from a non-collision source
Collision	N/A, deductible applies	Damage to your vehicle in a collision, including a single-vehicle accident
Personal injury protection or medical payments*	State minimum or higher	Injuries to you and your passengers regardless of fault

Read our methodology

*In no-fault states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah

Liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. is the foundation of a car insurance policy, and it’s required by law in most states. Drivers with significant assets should consider higher liability limits or even an umbrella policy.

If you have a loan or lease, you’re required to carry comprehensive and collision coverage; along with state requirements, that’s known as full coverage, to cover repairs to your car from collisions and other sources of damage, covered by comprehensive.

Comprehensive insurance, "provides coverage against theft and damage caused by an incident other than a collision, such as theft, vandalism, fire, flood, hail, falling rocks or trees, and other non-collision hazards," says Mark Friedlander, director of corporate communications for the Insurance Information Institute.

In a no-fault state, you should carry at least the minimum required personal injury protection coverage.

Is state minimum car insurance enough?

No. State minimum car insurance is not enough for most drivers; it provides limited liability coverage that may leave you responsible for thousands in a serious at-fault accident. It doesn't provide coverage for your vehicle; it only covers damage to others.

State minimum coverage:

Is the minimum legally required to drive
Is not enough to cover a serious accident, leaving you responsible
Doesn't cover any damage to your vehicle

Bottom line: State minimum coverage provides the legal minimum but doesn't protect your savings, assets or income from the risk of a serious accident.

Recommended car insurance coverage for most drivers

For strong financial protection, most experts recommend liability limits of 100/300/100 or higher, UM/UM at the same level, both collision and comprehensive with an affordable deductible, and personal injury protection (PIP) or medical payments (MedPay) at the minimum required or higher in no-fault states.

Consider this coverage a starting point, and adjust your coverage based on your specific needs, such as higher liability limits or umbrella insurance.

Recommended car insurance by situation

Choose the car insurance that's right for your situation. If your car is older and paid off, you can drop full coverage, if you have a loan or lease you must keep it, but in either case, keep higher liability limits. You should also consider your assets, your level of risk and your health insurance when choosing liability limits and personal injury protection.

If you have an older, paid-off car:

If your car is older, low-value and paid off, you can drop comprehensive and collision, but keep coverage to protect you financially.

Drop comprehensive and collision if your car is paid off and lower in value, and you can afford to repair or replace it
Keep higher liability limits to protect your assets and income

If your car is financed or leased:

If you have a loan or lease, you are required to carry full coverage, and may also be required to carry higher liability limits (most common with a lease).

Carry but comprehensive and collision with a deductible you can afford if you need to pay it
Carry liability limits high enough to protect your assets
Buy gap insurance if you're at risk of owning more than the car is worth (leases sometimes include this or require it)

If you have significant assets or high income:

High-income drivers and those with significant assets to protect to should carry the highest possible liability limits, and consider carrying umbrella insurance as well for added protection.

Carry the highest available liability limits
Consider adding umbrella insurance to extend your liability protection and protect your assets fully

If you live in a high-risk area:

If your area is at a high risk for severe weather, you need comprehensive coverage, and if there are a lot of uninsured drivers, you should bolster your uninsured/underinsured motorist coverage.

Ensure that you have comprehensive coverage to protect from storms and floods
Carry both collision coverage and UM/UIM at limits matching your liability in an area with high levels of uninsured drivers, or if your state minimum limits are very low

If you have limited or no health insurance:

Carry higher personal injury protection and medical payments coverage limits if you have a high deductible, high coinsurance or no health insurance at all.

Increase your PIP limits from the state minimum or add the coverage if it's optional
Carry the highest medical payments coverage limits available

How much liability coverage do you need?

You need enough liability coverage to protect you and your assets if you are at fault in a serious accident; we recommend at least 100/300/100. Increase these limits if you have many assets or a high income.

This limits provide:

$100,000 for bodily injury to any one person
$300,000 for bodily injury to all people in the accident
$100,000 for property damage

Do you need full coverage car insurance?

You need full coverage car insurance if you have a loan or lease or if you can't afford to replace or repair your car out of pocket.

If you have a loan or lease, you are required to carry full coverage insurance by the terms of your agreement
If you have a newer or high-value car, you should carry full coverage
Consider dropping full coverage only if you have a low-value car that you own outright and you can afford to repair or replace it

How much uninsured motorist coverage do you need?

You need at least as much UM/UIM coverage as your liability limits; most car insurance companies won't offer the coverage in a lower amount. Consider higher limits if you live in a state with very low state minimum requirements or a lot of uninsured drivers.

Your UM/UIM limits should be at least as high as your liability limits
Carry higher limits in a state with low state minimums, as many drivers will carry only that coverage, leaving you exposed
Increase your limits in a state with a high level of uninsured drivers

How much PIP or MedPay do you need?

You need at least your state's minimum required PIP and MedPay limits if you live in a no-fault insurance state, but you should carry more or add it as an option if you don't have health insurance or have a high-deductible plan.

In a no-fault state, carry at least the legally required limits
Increase your limits if you have no health insurance or a limited plan with a high deductible and other out-of-pocket costs

What deductible should you choose?

You should choose the highest deductible that you can afford to pay out of pocket if you have to file a claim. A higher deductible means lower premiums, so you'll pay less for car insurance and, if you don't file a claim, keep that money in your pocket.

Choose the highest deductible that you could afford to pay immediately if you had to file a claim
High deductibles reduce your premiums, but require you to pay more out of pocket
Low deductibles increase your premiums, but you'll pay less out of pocket

Car insurance requirements by state

Each state sets a minimum amount of coverage legally required, but these limits are often too low to fully protect drivers. Consider the repair and replacement cost of your vehicle, your risk if you're sued and how you'll handle medical costs after an accident, for yourself and for anyone you've injured.

State minimums are a baseline, not the coverage level you should choose to protect yourself.

Find your state's requirements below.

State minimum car insurance requirements: Liability limits and mandatory coverage
State	Minimum liability coverage limits	Other types of insurance required (if any)
Alaska	50/100/25	-
Alabama	25/50/25	-
Arkansas	25/50/25	-
Arizona	25/50/15	-
California	30/60/15	-
Colorado	25/50/15	-
Connecticut	25/50/25	UIMBI and UMBI
Washington, D.C.	25/50/10	UMBI and UMPD
Delaware	25/50/10	-
Florida	10/20/10	PIP
Georgia	25/50/25	-
Hawaii	20/40/10	PIP
Iowa	20/40/15	-
Idaho	25/50/15	-
Illinois	25/50/20	UMBI
Indiana	25/50/25	-
Kansas	25/50/25	UMBI and PIP
Kentucky	25/50/25	PIP
Louisiana	15/30/25	-
Massachusetts	20/40/5	UIMBI, UMBI, PIP and Mandatory BI
Maryland	30/60/15	UMBI, UMPD and PIP
Maine	50/100/25	UMBI and Med
Michigan	50/100/10	PIP and Property Protection
Minnesota	30/60/10	UIMBI, UMBI and PIP
Missouri	25/50/25	UMBI
Mississippi	25/50/25	-
Montana	25/50/20	-
North Carolina*	30/60/25	UMBI and UMPD
North Dakota	25/50/25	UIMBI, UMBI and PIP
Nebraska	25/50/25	UIMBI and UMBI
New Hampshire	25/50/25	UIMBI, UMBI and Med
New Jersey	30/70/25	UIMPD, UMBI, UMPD and PIP
New Mexico	25/50/10	-
Nevada	25/50/20	-
New York	25/50/10	UIMBI, UMBI and PIP
Ohio	25/50/25	-
Oklahoma	25/50/25	-
Oregon	25/50/20	UMBI and PIP
Pennsylvania	15/30/5	PIP
Rhode Island	25/50/25	-
South Carolina	25/50/25	UMBI and UMPD
South Dakota	25/50/25	UIMBI and UMBI
Tennessee	25/50/25	-
Texas	30/60/25	-
Utah	30/65/25	PIP
Virginia	50/100/25	UMBI and UMPD
Vermont	25/50/10	UIMBI, UMBI and UMPD
Washington	25/50/10	-
Wisconsin	25/50/10	UMBI
West Virginia	25/50/25	UIMBI, UIMPD, UMBI and UMPD
Wyoming	25/50/20	-

Read our methodology

Note that state minimums for car insurance increased in New Jersey as of January 1, 2026.

What does it mean to have coverage limits of 15/30/5?

In this case the numbers refer to:

Bodily injury liability coverage of $15,000 per person.
Bodily injury liability coverage of $30,000 per accident.
Property damage liability coverage of $5,000 per accident.

As you can see, these limits are very low and won't provide much protection. A policy with these limits provides no protection for you or your car, and only pays out for damage or injuries to others.

Average cost of car insurance by state and coverage level

Michigan, at $3,141, and California, at $2,601 are the most expensive states for full coverage car insurance; Michigan is also the most expensive state for minimum coverage with an average annual rate of $1,855. It's well ahead of the next most expensive state, which is Connecticut at $891 a year.

South Dakota has the cheapest state minimum coverage at $323 a year, followed by Iowa at $326 a year. The cheapest state for full coverage is Maine, at an average of $1,080 a year, with New Hampshire just behind it at $1,086.

For comparison, here are the average car insurance costs by state for both full coverage at 100/300/100 with $500 deductibles and state minimum liability coverage.

Average annual car insurance rates by state for minimum and full coverage
State	State minimum average annual premium	Full coverage average annual premium
Alabama	$514	$2,107
Alaska	$415	$2,215
Arizona	$662	$2,333
Arkansas	$503	$2,723
California	$751	$3,010
Colorado	$547	$3,222
Connecticut	$1,039	$2,726
Delaware	$1,277	$3,097
Florida	$1,208	$3,852
Georgia	$780	$2,739
Hawaii	$425	$1,721
Idaho	$423	$1,791
Illinois	$462	$1,901
Indiana	$445	$1,856
Iowa	$330	$2,228
Kansas	$520	$2,410
Kentucky	$708	$2,976
Louisiana	$993	$4,180
Maine	$377	$1,701
Maryland	$815	$2,273
Massachusetts	$621	$2,430
Michigan	$714	$3,146
Minnesota	$585	$2,561
Mississippi	$510	$2,455
Missouri	$544	$2,410
Montana	$422	$2,541
Nebraska	$369	$2,387
Nevada	$908	$3,284
New Hampshire	$447	$1,650
New Jersey*	$1,124	$2,736
New Mexico	$475	$2,486
New York	$1,070	$2,898
North Carolina	$644	$2,587
North Dakota	$354	$2,079
Ohio	$390	$1,739
Oklahoma	$452	$2,705
Oregon	$715	$1,927
Pennsylvania	$421	$2,428
Rhode Island	$761	$2,706
South Carolina	$682	$2,367
South Dakota	$382	$2,635
Tennessee	$515	$2,214
Texas	$620	$2,631
Utah	$708	$2,250
Vermont	$299	$1,504
Virginia	$528	$1,837
Washington	$490	$2,175
Washington, D.C.	$896	$3,394
West Virginia	$577	$2,557
Wisconsin	$407	$2,026
Wyoming	$286	$1,984

Read our methodology

*Rates reflect 2025 minimum limits and will be updated as soon as data is available.

Choose car insurance to protect your finances, and not just to meet legal requirements. To do this, you will need more than state minimums, starting with 100/300/100 liability limits as a baseline.

For most drivers:

State minimum coverage is not enough
100/300/100 is a strong baseline for coverage, but carry more if you have assets
Full coverage is required if you have a loan or lease, and essential if you have a newer, high-value vehicle
Choosing the highest limits you can afford is the best way to protect yourself

Always err on the side of caution and carry more coverage than you think you need, rather than taking the risk of being underinsured.

Methodology

We partnered with Quadrant Information Services to field average car insurance rates across all 50 states and Washington, D.C. National and state average rates are based on three coverage levels: state minimum, 50/100/50 liability-only, and full coverage with 100/300/100 liability and $500 deductibles.

Unless otherwise indicated, averages are based on our full coverage data set. This data set is based on:

12-mile commute, 10,000 annual mileage
Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record

Learn more about our data and methodology.

FAQ: Choosing car insurance coverage

How much car insurance do I really need?

Most drivers should carry at least 100/300/100 liability coverage, along with matching UM/UIM coverage and both comprehensive and collision if the car is leased or financed or you can't afford repairs or replacement out of pocket.

Is state minimum car insurance enough?

No. State minimum coverage meets legal requirements but does not fully protect you and your finances in a serious accident.

What is the best deductible for car insurance?

The best deductible is the highest one you can afford to pay if you have to file a claim; not what you might be able to afford in the future, but what you can afford right now.

Do I need full coverage if my car is paid off?

Yes, if you can't afford to repair or replace your car out-of-pocket, although you are not required to carry it once your car is paid off.

How much liability insurance should I have?

You should carry at least 100/300/100, with higher limits if you have assets to protect. If you're working with a budget, carry the highest limits you can afford.

Should uninsured motorist coverage match liability?

Yes, you should match your UM/UIM limits to your liability coverage; most carriers will require you to match limits.

How much car insurance do experts recommend?

Most experts recommend a minimum of 100/300/100 in liability coverage, matching UM/UIM coverage, and both comprehensive and collision coverage with a deductible you can comfortably afford,

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