What are the state requirements for auto insurance?
Automobile Financial Responsibility Laws By State
| State | Insurance required (1) | Minimum liability limits (2) |
|---|---|---|
| AL | BI & PD Liab | 25/50/25 |
| AK | BI & PD Liab | 50/100/25 |
| AZ | BI & PD Liab | 15/30/10 |
| AR | BI & PD Liab, PIP | 25/50/25 |
What states require bodily injury insurance?
With the exception of Florida, every state requires bodily injury liability insurance (BI), while all 50 states plus Washington, D.C., require property damage liability (PD). Roughly half of the states require a type of uninsured/underinsured motorist insurance (UIM).
Do all states have financial responsibility laws?
Most—but not all—states require drivers to purchase car insurance. But all states do have financial responsibility laws. These laws are in place to protect all drivers by requiring drivers to prove they are financially able to pay for an accident.
Do states dictate a drivers minimum required amount of insurance?
Virtually all states require drivers to have auto liability insurance before they can legally drive a motor vehicle. State laws set the minimum amounts of insurance or other financial security that drivers must pay for the harm caused by their negligence if an accident occurs.
What’s the most common type of insurance that states require?
Liability Coverage Auto liability
Liability Coverage Auto liability coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law.
Do all 50 states require auto insurance?
No, all states do not require car insurance, but all require financial responsibility to operate a vehicle on the roadway. If you choose to buy insurance, as most drivers do, all 50 states have different minimum insurance requirements.
What states do you not have to have car insurance?
New Hampshire and Virginia are the only two states that don’t require car insurance. That said, there is no one country-wide rule when it comes to how much car insurance you have to have. Each state has a different minimum amount of car insurance that drivers must obtain in order to legally drive on public roads.
What is violation of financial responsibility?
California State Law requires that you be financially responsible for any injuries or property damage occurring as a result of the operation of a motor vehicle. It is illegal to drive a motor vehicle if you are not financially qualified to coverage injuries or damages to another.
Which state has the highest car insurance rate?
Michigan
Comparison of the average cost of auto insurance by state. Michigan has the highest rates for auto insurance, with drivers paying an average of $5,282 a year for minimum coverage. Iowa has the cheapest auto insurance; drivers in the state pay just $357 a year on average for minimum coverage.