Auto Insurance Requirements by State (2026)

Most people living in the United States need car insurance to drive legally. New Hampshire and Virginia are the only states that do not require drivers to carry car insurance. Each state requires drivers to prove they have the financial means to pay for damages in case they cause an accident.

There are different requirements for minimum liability insurance by state. Depending on where you live, you may have to carry higher levels of auto liability insurance or additional coverage types to meet your state’s minimum requirements. However, purchasing your state’s minimum car insurance should not be difficult, and most companies will be aware of the auto insurance requirements by state. 

As you shop for car insurance in your state, remember to compare quotes from multiple insurance companies before you choose one. Comparing car insurance quotes can help you get the coverage you need without paying too much.

Different Types of Auto Insurance Coverage

Because car insurance coverage requirements vary from one state to the next, you must familiarize yourself with your state’s rules and requirements before making any coverage decisions. Some of the most common types of auto insurance coverage states may require include:

• Bodily injury liability: Bodily injury liability protects you if you cause an accident and one or more people are injured or killed.
• Property damage liability: Property damage liability protects you if you damage someone’s vehicle or other personal property in an accident. 
• Personal injury protection (PIP): Personal injury protection insurance coverage helps with medical expenses regardless of fault. PIP insurance can also cover things like lost wages or health insurance benefits. 
• Medical payments (MedPay): MedPay insurance helps with medical expenses due after a covered event. MedPay does not cover lost wages like PIP insurance does.
• Uninsured/underinsured motorist coverage: Uninsured or underinsured motorist coverage helps if you are in a car accident with someone who doesn’t have the proper insurance.

In addition to these coverages, many drivers purchase collision and comprehensive insurance for a more robust car insurance policy.

Collision insurance pays for your vehicle’s damages after an accident, regardless of who was at fault. Comprehensive insurance helps if something like inclement weather, a wild animal, theft, or vandalism damages your car. Read more about the difference between comprehensive and collision coverage here.

If you want added protection on the road, you should consider purchasing collision and comprehensive insurance for a full coverage policy. 

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Minimum Auto Insurance Requirements by State

The amount of car insurance coverage you must have to drive legally depends on where you live. Some states have lower required state minimum auto insurance coverage levels, while others may require higher levels and additional coverage types before you can get behind the wheel.

All states except New Hampshire and Virginia require the following types of coverage:

• Bodily injury liability
• Property damage liability

For example, in Maine, you need $50,000 in bodily injury liability per person, $100,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident. On the other hand, California requires $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident.

This table shows the car insurance laws by state.

Read more: Cheap Alaska Auto Insurance

As you can see, some states also require additional coverage, like personal injury protection (PIP), medical payments (MedPay), and/or uninsured/underinsured motorist coverage.

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States that Don’t Require Auto Insurance

Most U.S. states require drivers to carry proper coverage before they’re allowed to get behind the wheel. Still, some state auto insurance laws allow drivers to prove financial responsibility in case of an accident in other ways:

• New Hampshire: If you live in New Hampshire, you do not legally have to buy car insurance, but you will be held financially responsible for any damages you cause in an accident. If you choose to buy car insurance, a minimum coverage policy in New Hampshire consists of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage per accident. New Hampshire will force certain drivers to purchase car insurance if they commit specific driving infractions, like a DUI or multiple at-fault accidents. Learn more about auto insurance requirements in New Hampshire.
• Virginia: In Virginia, drivers can pay a $500 annual fee called an uninsured motorist fee instead of purchasing Virginia auto insurance. If you choose to pay the uninsured motorist fee, you must pay for all damages completely out of pocket if you ever cause an accident.

Fees in both New Hampshire and Virginia to avoid purchasing car insurance are close to what you would pay for a minimum coverage policy in each state. Because of this, it would be smarter for New Hampshire and Virginia drivers to purchase a liability-only car insurance policy in their state to avoid paying out of pocket if they ever cause an accident.

In addition to New Hampshire and Virginia, some U.S. states allow drivers to purchase a cash deposit or bond instead of buying car insurance. The cost of these bonds can be anywhere from $25,000 to more than $115,000. It’s cheaper and easier to purchase your state’s minimum coverage than to purchase a bond and then negotiate for repairs on your own. 

Read More:

• Cheap Idaho Auto Insurance
• Cheap Delaware Auto Insurance
• Cheap Maine Auto Insurance
• Cheap New Mexico Auto Insurance
• Cheap Wisconsin Auto Insurance
• Cheap Wyoming Auto Insurance

Other Types of Auto Insurance

If you want to purchase more than your state’s minimum coverage requirement, you can. Most insurance companies offer a variety of coverage options to policyholders. In addition to a full coverage policy, you can purchase add-on coverages that fit your unique needs.

Some of the most common car insurance coverage add-ons include:

• Gap insurance: With gap insurance, your car insurance company pays the difference between what you owe on your car loan or lease and your vehicle’s actual cash value (ACV). If you drive a new vehicle and need to consider depreciation, gap insurance may be a good investment. 
• New car replacement coverage: With new car replacement coverage, your insurance company will replace your totaled vehicle with a car that’s the same make, model, and year. 
• Rental car reimbursement coverage: Rental car reimbursement allows you to save money if you ever need to rent a vehicle after an accident. If your car is in the shop following a covered event, your insurance company will reimburse you for your expenses up to a certain dollar amount. 
• Rideshare insurance: If you drive for a company like Uber or Lyft, rideshare insurance is a great way to ensure you don’t have any gaps in your coverage. Rideshare insurance provides liability insurance when you’re on the job. 
• Emergency roadside assistance: Auto insurance with roadside assistance plans often offers services like towing, flat tire repair, fuel delivery, and lockout assistance. If you drive a lot, roadside assistance may be a good addition to your car insurance policy.

Each type of coverage you add to an auto insurance policy will increase your monthly or annual rates. Still, additional coverage means additional protection when you’re behind the wheel. If you drive a lot, drive a new car, or drive a vehicle that’s worth a lot of money, you should consider additional coverage options. 

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Auto Insurance Requirements by State: The Bottom Line

Each state has its own laws about car insurance requirements. To meet your state’s car insurance requirements, you must purchase at least the minimum coverage amounts that your state dictates you need before you are legally allowed to get behind the wheel. 

Because car insurance laws vary by state, you should check with your state’s department of motor vehicles to ensure you have the coverage you need for your car. Once you decide whether you want a minimum coverage policy or a policy that includes more coverage for added protection, you can begin seeking quotes.

When you’re shopping for car insurance, remember to compare quotes from several companies to get a better idea of what you should pay for coverage. Don’t commit to a policy until you feel comfortable with the price and the coverage you’re getting.