What car insurance is required in the USA

In the USA, car insurance requirements vary by state, but most states mandate at least some form of liability insurance to legally drive on public roads. Here’s a breakdown of the key requirements:

Liability Insurance:

Nearly all states (except New Hampshire) require drivers to carry minimum liability insurance, which covers bodily injury (BI) and property damage (PD) you cause to others in an accident. The standard minimum limits for PD and BI are $25,000 per person/$50,000 per accident and $25,000 per person, respectively, though these can vary. For example, California requires $15,000/$30,000/$5,000, while Florida only mandates $10,000 in PD and $10,000 in Personal Injury Protection (PIP) instead of BI.

Personal Injury Protection (PIP):

Required in no-fault states like Florida, Michigan, and New York, PIP covers medical expenses for you and your passengers, regardless of fault. For instance, Florida requires $10,000 in PIP coverage.

Uninsured/Underinsured Motorist Coverage (UM/UIM):

About half of states, such as Maine and Kentucky, require UM/UIM coverage. That defends you when you get struck by someone who has very little or no coverage. Maine, for example, mandates $50,000 per person/$100,000 per accident.

Exceptions:

New Hampshire:

The only state where car insurance isn’t mandatory. However, drivers must prove financial responsibility (e.g., a cash deposit) if they cause an accident, or they’ll need insurance for at least three years afterward.

Virginia:

Allows drivers to pay a $500 annual fee instead of getting insurance, but they’re still liable for damages in an accident.

Some states, like Mississippi, permit posting a bond (e.g., $25,000-$115,000) as an alternative to insurance, though this isn’t practical for most.

Additional Notes:

If you lease or finance a car, lenders typically require comprehensive and collision coverage beyond state minimums.

Penalties for driving without required insurance include fines, license suspension, and even jail time in some states.

Federal law doesn’t mandate insurance; it’s regulated at the state level, so requirements can differ significantly.

Always check your state’s specific laws, as they can change, and minimum coverage might not fully protect you in a serious accident. Consider higher limits or optional coverages like comprehensive or collision for better financial security.