Some form of car insurance is required by law in nearly every state. Many states mandate multiple coverage types—liability insurance most commonly, but sometimes add-ons like personal injury protection and uninsured motorist coverage, too. And if you take out a loan or lease for your vehicle, you’ll likely be required by your lender or lessor to obtain collision and comprehensive car insurance coverage.
If you drive without a car insurance policy that has sufficient coverage limits to satisfy your state’s requirements, you could face fines, jail time, and other financial penalties. But even if you’ve got enough coverage according to the law, it could be worth purchasing more than your state requires—since state-mandated minimum limits are often too low to cover all of the costs of a serious car accident.
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When is car insurance required?
In most cases, you must obtain car insurance before you purchase a vehicle because auto insurance coverage is typically required to buy, finance, register, or drive a new car. You may be able to buy a used car from a private seller without being asked to show proof of coverage, but you generally aren’t allowed to drive it legally unless you’re already insured.
Most states require drivers to carry liability insurance because it can keep people from bearing the full financial burden of an accident caused by another driver. While state-required policies always cover other people’s medical and repair expenses when you’re at fault for a crash, some states also require coverage types that can cover your own expenses if you’re at fault or the at-fault driver is uninsured.
Which states require car insurance?
Car insurance is legally required in the District of Columbia and the following 49 states:
What types of car insurance are legally required?
The types of vehicle insurance you’re required to carry depend on your state. The following sections outline the various coverage types that are required in certain states.
Liability insurance
Liability car insurance covers another driver or a pedestrian’s expenses if you’re responsible for a car accident. Bodily injury liability insurance (BI) covers medical bills if you injure someone in a crash, while property damage liability insurance (PD) covers repair bills if you damage their vehicle or other property. Additionally, liability insurance can cover your legal fees if you’re sued as a result of a collision.
Every state with car insurance laws requires some type of auto liability coverage, and almost all of them require both bodily injury and property damage liability coverage. Minimum liability limits vary by state, but most states require 20/50/25 coverage—meaning at least $25,000 worth of BI coverage per person injured in an accident, $50,000 worth of BI coverage across all people injured in an accident, and $25,000 worth of PD coverage per accident.
Uninsured and underinsured motorist coverage
Uninsured motorist coverage (UM) pays your bills if you get into an accident where the at-fault driver doesn’t have car insurance. It may include either or both of uninsured motorist bodily injury coverage (UMBI) and uninsured motorist property damage coverage (UMPD). Also, it’s often sold alongside underinsured motorist coverage (UIM), which covers you if the at-fault driver doesn’t have enough liability insurance to fully cover your medical or repair costs.
Personal injury protection
Personal injury protection covers expenses like medical treatments, child care and other household services, lost wages, rehabilitative care, and funeral costs if you’re injured or killed in a collision—no matter who’s responsible for the crash. PIP is usually required in “no-fault states,” where drivers must file claims on their own car insurance in most cases, regardless of who caused the accident.
Medical payments coverage
In states that don’t follow the no-fault system, you may need to purchase medical payments coverage to take care of hospital bills for you or your passengers after a car wreck that you’re held liable for. However, you should note that MedPay doesn’t cover some of the supplementary expenses that PIP does, such as household services and lost income.
Property protection insurance
Property protection insurance is a specialized auto insurance coverage type that is only required—and only available—in Michigan. PPI coverage may pay out up to $1 million for damage you inflict on parked cars, fences, buildings, or other types of property. This coverage type only applies to vehicle accidents that occur within Michigan’s state lines.
Minimum car insurance requirements by state
The following table gives an overview of how much car insurance you need to drive in each state, including the minimum coverage types and coverage limits required by state law.
It’s worth noting that liability limits are typically shown as three numbers. For example, “25/50/25” represents:
- $25,000 in bodily injury coverage per person
- $50,000 in bodily injury coverage per accident
- $25,000 in property damage coverage per accident
What happens if you drive without car insurance?
Driving without car insurance is almost always against the law, and if you’re caught, you may face severe legal and financial consequences, such as the following:
- Thousands in fines
- Imprisonment
- Vehicle impoundment
- License suspension
- SR-22 filing requirement
- Requirement to show proof of insurance coverage to regain your car
- Higher car insurance premiums
- Liability for other people’s medical or car repair bills if you’re at fault for an accident
Are there any states that don’t require car insurance?
New Hampshire is the only state that doesn’t require every driver to maintain car insurance coverage. However, the state does require uninsured drivers to prove they have enough money to cover another person’s expenses in the event of an at-fault collision. In addition, anyone who chooses to buy optional coverage in New Hampshire must adhere to minimum coverage standards.
Is minimum coverage enough?
The minimum level of coverage required by law in most states isn’t enough to cover substantial medical and repair expenses after an at-fault car accident. For example, the average new car in the United States costs nearly $50,000 as of May 2026—so you could be on the hook for many thousands of dollars if you crash into and total someone else’s brand-new car and only have $25,000 in property damage liability coverage, as most states require.
State laws generally set the minimum per-accident bodily injury liability coverage limit only twice as high as the minimum per-person bodily injury liability coverage limit. For this reason, you could end up being significantly underinsured if you are held liable for injuring three or more people in a single car accident.
Many insurance professionals recommend purchasing about four to six times more liability coverage than the minimum amount required in most states. Specifically, you’re advised to buy a 100/300/100 liability insurance policy—which means it includes $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.
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When is full coverage car insurance required?
Full coverage car insurance is never required by law, but it’s often required by lenders and lessors for drivers who need to finance or lease a vehicle. There’s no official or universal definition for full coverage, but the term typically refers to policies that combine comprehensive and collision insurance with government-mandated car insurance coverages.
Car insurance requirements at a glance
- Car insurance is required by law for drivers in almost every state, and you’ll typically need to show proof of coverage to purchase a new car, take out an auto loan, and obtain your vehicle registration.
- New Hampshire is the only state that doesn’t require auto insurance—though New Hampshire drivers who do choose to buy car insurance must still meet minimum coverage standards.
- Nearly every state requires liability car insurance. Several states also require uninsured and underinsured motorist coverage and personal injury protection, while medical payments coverage and property protection insurance are only compulsory in one state each.
- Along with establishing which car insurance coverage types you must purchase, state laws also determine how much coverage you must purchase for each type of car insurance. Most states require you to buy liability coverage with 25/50/25 coverage limits or higher.
- Since it’s generally illegal to drive without car insurance, you could face severe legal penalties, from fines to jail time, if you’re caught driving uninsured. It could also lead to other financial consequences, such as higher car insurance premiums and major out-of-pocket costs in the event of an accident.
- The minimum amount of coverage required in your state may not be high enough to fully protect you from significant out-of-pocket costs if you cause a car wreck. For more peace of mind, you may want liability insurance with 100/300/100 coverage limits.
- Although they aren’t required by law, you may need comprehensive coverage and collision coverage to finance or lease a car.
How to find your state’s car insurance requirements
There are many ways to confirm the minimum car insurance coverage requirements in your state. For example:
- Visit the website for the Department of Insurance, the Department of Motor Vehicles, or an equivalent government agency in your state.
- Check an independent website that compiles minimum coverage requirements for different states.
- Ask your insurance agent or another representative from your insurance company.
- Call your state’s insurance commissioner.
The takeaway
Car insurance is not universally mandated by law before you get behind the wheel—but it almost is. Nearly every state requires liability insurance, and several others outline a handful of compulsory add-ons, including uninsured motorist coverage and personal injury protection.
No matter where you drive and what your state demands, it’s wise to have, at the very least, liability coverage. Experts recommend buying three to four times the amount of your state’s minimum requirement, just to be safe.
Frequently asked questions
Is car insurance required in all states?
Car insurance is required by law in almost every state. New Hampshire is the only state where coverage is technically optional—though drivers must still meet financial responsibility standards that show they can take care of another driver’s expenses whenever they’re at fault for an accident.
Can you legally drive without car insurance?
You cannot legally drive without car insurance in any state besides New Hampshire.
Do you need car insurance if your car isn’t being driven?
Even if you aren’t currently using your vehicle, you may be required to maintain auto insurance from a licensed insurance provider as long as your car is registered.
What is the minimum amount of car insurance required by law?
The minimum amount of car insurance required varies by state. However, the most common minimum liability limits are 25/50/25, meaning:
-$25,000 for property damage per accident
-$25,000 for bodily injury per person
-$50,000 for bodily injury per accident
Are state minimum car insurance limits enough to protect you?
No, state minimum car insurance limits often aren’t enough to cover all the costs stemming from an at-fault car accident. As a result, it’s recommended that you instead buy a 100/300/100 liability auto insurance policy—which is much more coverage than any state requires.
