Have you ever suspected that your auto insurance provider was ripping you off? Or maybe you're actually afraid that you don't have enough coverage. For instance, what would happen if you were to be involved in an accident with a motorist who didn't have any insurance of her own - would you be covered?
Most states require that you have liability insurance, which comes is needed in the event that you're at fault in an accident. The mandatory minimum amount varies according to state. In the chart below, minimum liability limits are read as follows (in thousands of dollars): Bodily injury liability for one person in an accident / Bodily injury liability for all people injured in an accident / Property damage liability for one accident. So, in Alabama, the minimum requirements are $20,000 of bodily injury liability for one person, $40,000 bodily injury liability for all people, and $10,000 property damage liability.*
Personal Injury Protection (PIP), known as MedPay in some states, pays for your own medical expenses, any lost wages and whatever other costs may arise when you're injured in an accident. It generally pays about 80 percent of your losses. PIP is required in Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.
Uninsured motorist coverage is also required in some states (see chart below). This takes care of your own medical expenses in the case that you are injured in an accident with an uninsured or underinsured driver.
State
Liability
required? Liability minimums (in
thousands of dollars)
PIP
required?
No-fault
state?
Uninsured
motorist coverage required?
Alabama
Yes, 20/40/10
No
No
No
Alaska
Yes, 50/100/25
No
No
No
Arizona
Yes, 15/30/10
No
No
No
Arkansas
Yes, 25/50/25
No
No
No
California1
Yes, 15/30/5
No
No
No
Colorado
Yes, 25/50/15
Yes
Yes
No
Connecticut
Yes, 20/40/10
No
No
No
Delaware
Yes, 15/30/5
Yes
No
No
Florida2
Yes, 10/20/10
Yes
Yes
No
Georgia
Yes, 25/50/25
No
No
No
Hawaii
Yes, 20/40/10
Yes
Yes
No
Idaho
Yes, 25/50/15
No
No
No
Illinois
Yes, 20/40/15
No
No
Yes
Indiana
Yes, 25/50/10
No
No
No
Iowa
Yes, 20/40/15
No
No
No
Kansas
Yes, 25/50/10
Yes
Yes
Yes
Kentucky
Yes, 25/50/10
Yes
Yes
No
Louisiana
Yes, 10/20/10
No
No
No
Maine
Yes, 50/100/25
No
No
Yes
Maryland
Yes, 20/40/15
Yes
No
Yes
Massachusetts
Yes, 20/40/5
Yes
Yes
Yes
Michigan
Yes, 20/40/10
Yes
Yes
No
Minnesota
Yes, 30/60/10
Yes
Yes
Yes
Mississippi
Yes, 10/20/5
No
No
No
Missouri
Yes, 25/50/10
No
No
Yes
Montana
Yes, 25/50/10
No
No
No
Nebraska
Yes, 25/50/25
No
No
No
Nevada
Yes, 15/30/10
No
No
No
New Hampshire
No, 25/50/25
No
No
Yes
New Jersey3
Yes, 15/30/5
Yes
Yes
Yes
New Mexico
Yes, 25/50/10
No
No
No
New York4
Yes, 25/50/10
Yes
Yes
Yes
North Carolina
Yes, 30/60/25
No
No
No
North Dakota
Yes, 25/50/25
Yes
Yes
Yes
Ohio
Yes, 12.5/25/7.5
No
No
No
Oklahoma
Yes, 10/20/10
No
No
No
Oregon
Yes, 25/50/10
Yes
No
Yes
Pennsylvania
Yes, 15/30/5
No
Yes
No
Rhode Island
Yes, 25/50/25
No
No
Yes
South Carolina
Yes, 15/30/10
No
No
Yes
South Dakota
Yes, 25/50/25
No
No
Yes
Tennessee
No, 25/50/10
No
No
No
Texas
Yes, 20/40/15
No
No
No
Utah
Yes, 25/50/15
Yes
Yes
No
Vermont
Yes, 25/50/10
No
No
Yes
Virginia
Yes, 25/50/20
No
No
Yes
Washington
Yes, 25/50/10
No
No
No
Washington D.C.
Yes, 25/50/10
No
No
Yes
West Virginia
Yes, 20/40/10
No
No
Yes
Wisconsin
No, 25/50/10
No
No
Yes
Wyoming
Yes, 25/50/20
No
No
No
Be forewarned that if someone else is injured in an accident and you're at fault, your state's minimum liability coverage may not cover their medical expenses, in which case their attorney will most likely come after your assets. Therefore, most insurance companies recommend purchasing 100/300 limits of bodily injury liability.
Collision and comprehensive insurance cover your vehicle in instances wherein another motorist is not involved. Collision covers damage to the car resulting from running into anything, be it another car, a parking structure wall, a house, etc. Comprehensive coverage takes care of just about everything else, including theft, fire, falling objects, missiles, explosion, earthquake, flood, riot, civil commotion, and so on.
While nobody enjoys shoveling more money into the pockets of wealthy insurance companies, chances are you'll be grateful for that coverage at some point in your driving career. Use the chart above to determine your state's minimum levels of coverage, and then figure out what additional coverage you may need based on your individual needs. One important factor to take into account is overlapping coverage - does your medical insurance plan already pay your hospital bills in the case of an automobile accident? You also want to avoid paying high premiums on a vehicle that isn't worth very much money.
One thing's for sure: It's a jungle out there. Make sure you're covered.
1. Low-cost policy minimums for Los Angeles and San Francisco for eligible low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3, effective July 1, 2000, to Jan. 1, 2004.
2. Only property-damage liability is compulsory.
3. Drivers can choose a standard or basic policy. Basic policy limits are 10/10/5; only property-damage liability is mandatory.
4. Liability rises to 50/100 if injury results in death.
Source: Insurance Information Institute
Disclaimer: This article is published for general information only, and is NOT intended to serve as specific legal or financial advice. Readers should talk to an insurance professional before making changes to any insurance policy.
