State Minimum Auto Insurance

It's important to know your state minimum for auto insurance. Not having the minimum coverage required could lead to a loss of driving privileges. Not all states require insurance, and therefore it's important to contact your Department of Motor Vehicles to learn what, if any, insurance is required.

Typically, minimum insurance amounts are represented by three numbers – with the first two representing the minimum limits you'll need for bodily injury liability coverage, and the third stating the minimum limits of property damage liability coverage.

What the minimum auto insurance numbers mean

Here's an example: Motorists who live in Texas must purchase state minimum auto insurance as  follows  – 20/40/15. If you live in Texas, you would need to purchase insurance that would pay at least $20,000 in medical expenses and related costs for every injured person, and at least $40,000 per accident. Your insurance would also have to be able to pay up to $15,000 for property damages per accident.

Failure to have this basic coverage as a Texas resident would impact your ability to register your car in Texas, and it may impact your ability to drive at all. State laws define penalties for not having proper insurance coverage, and it's important to know what they are if you live in a state that requires minimum insurance.

Auto insurance for more than the state minimum

Knowing the state minimum for auto insurance is not enough. It may be in your best interest to buy coverage that exceeds those minimums due to escalating costs of health care and new cars. Looking again at the Texas example, if you crash into a brand new luxury car that costs $35,000 to replace, and you also cause injuries that result in $30,000 worth of medical expenses, then you'll have to pay $30,000 on top of what your insurance company will pay. This can be financially devastating if you don't have that amount of money at your disposal.

If you're not sure how much insurance to buy, you might start with the recommendation of the Insurance Information Institute: $100,000 per insured person and $300,000 per accident. However, if you request a free quote for auto insurance here, we can help you select a plan that best fits your budget and needs.