Minimum Auto Insurance By State: How Much Do I Have To Pay?
Auto insurance is mandatory in the United States, but minimum coverage requirements can vary significantly from state to state. Each state sets its own insurance requirements, determining the minimum amounts that must be covered by insurance in the event of an accident. It is important to realize that these minimum requirements do not always provide full coverage for every possible expense, but they do give you the legal right to drive.
What does minimum auto insurance include?
The main components of minimum auto insurance include:
- Liability Insurance: covers damages caused to other parties involved in the accident. This includes both property damage and medical expenses.
- Personal Injury Protection (PIP) or Medical Payments (MedPay): covers medical expenses for the driver and passengers.
- Uninsured/Underinsured Motorist Coverage: protects in the event of an accident with a driver who is uninsured or underinsured.
Requirements by state
- California: Minimum requirements include $15,000 for property damage, $30,000 for medical expenses for the injured, and $5,000 for medical expenses on your own vehicle.
- Texas: Texas requires liability insurance: $30,000 for one person, $60,000 for two, and $25,000 for property damage.
- Florida: Here, $10,000 PIP and $10,000 property damage insurance is required.
- New York: Minimum coverage is $25,000 for one person, $50,000 for two and $10,000 for property damage.
- Michigan: Michigan requires higher minimums: $50,000 for medical expenses and $100,000 for damages.
What to consider
Minimum insurance only covers basic risks and may not cover damages in serious accidents. It’s important to realize that additional options, such as collision or comprehensive insurance, may be necessary to protect your interests. Also, the cost of insurance depends on a number of factors: driver age, experience, vehicle condition, and value.
Conclusion
Choosing the minimum auto insurance depends on the state you live in and your protection needs. It’s important to make sure your insurance meets all of your state’s legal requirements, but it’s also worth considering extended coverage for added security.
