OLR Research Report


Auto Liability Insurance Requirements in Other States

By: Janet Kaminski Leduc, Senior Legislative Attorney

February 2, 2017

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2017-R-0050

Issue

This report identifies the states that require people to purchase (1) auto liability insurance, (2) uninsured motorist coverage, and (3) underinsured motorist coverage. For the states that require auto liability insurance, it lists the minimum levels of insurance required by law. (Information for this report comes from the Insurance Information Institute's September 2016 report, Compulsory Auto/Uninsured Motorists.) (This report updates and replaces OLR Report 2013-R-0258.)

Auto Insurance Requirements

Forty-nine states and the District of Columbia require drivers to have auto liability insurance. New Hampshire is the only state that does not require it. Instead, New Hampshire requires drivers to show that they are able to provide sufficient funds in the case of an at-fault accident (i.e., proof of financial responsibility) (see OLR Report 2013-R-0274).

Auto liability insurance generally pays another driver's medical, vehicle repair, and other costs when the policyholder is the at-fault driver in an accident. It covers (1) bodily injury (BI) per person and per accident and (2) property damage (PD). (Appendix 1 below lists the minimum liability limits required in each jurisdiction.)

Twenty-one jurisdictions require uninsured motorist coverage (UM): Connecticut, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South

Dakota, Vermont, Virginia, West Virginia, and Wisconsin. UM compensates policyholders when another driver who is at fault for the accident (1) has no auto liability insurance or (2) is a hit-and-run driver.

Twelve states require underinsured motorist coverage (UIM): Connecticut, Illinois, Maryland, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oregon, South Dakota, Vermont, and Virginia. UIM compensates a policyholder when the at-fault driver has an insufficient amount of auto liability insurance.

Appendix 1: Auto Insurance Requirements by State

State

Insurance Required

Minimum Auto Liability Limits

(in thousands of $)

Alabama

Bodily injury and property damage liability (BI & PD)

25/50/25

The first number refers to BI liability limit for one person injured in an accident ($25,000). The second number refers to BI liability limit for all persons injured in an accident ($50,000). The third number refers to the PD liability limit ($25,000).

Alaska

BI & PD

50/100/25

Arizona

BI & PD

15/30/10

Arkansas

BI & PD, Personal Injury Protection (PIP)

(PIP is mandatory in no-fault states and generally covers medical, rehabilitation, loss of earnings, and funeral expenses.)

25/50/25

California

BI & PD

15/30/5

(Low-cost policy limits for low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3.)

Colorado

BI & PD

25/50/15

Connecticut

BI & PD, UM, UIM

20/40/10

Delaware

BI & PD, PIP

15/30/10

District of Columbia

BI & PD, PIP, UM

25/50/10

Florida

PD, PIP

10/20/10

Georgia

BI & PD

25/50/25

Hawaii

BI & PD, PIP

20/40/10

Idaho

BI & PD

25/50/15

Illinois

BI & PD, UM, UIM

25/50/20

Indiana

BI & PD

25/50/10

Iowa

BI & PD

20/40/15

Kansas

BI & PD, PIP

25/50/25

Kentucky

BI & PD, PIP

25/50/10

State

Insurance Required

Minimum Auto Liability Limits

(in thousands of $)

Louisiana

BI & PD

15/30/25

Maine

BI & PD, UM

50/100/25

Maryland

BI & PD, PIP, UM, UIM

30/60/15

Massachusetts

BI & PD, PIP, UM

20/40/5

Michigan

BI & PD, PIP

20/40/10

Minnesota

BI & PD, PIP, UM, UIM

30/60/10

Mississippi

BI & PD

25/50/25

Missouri

BI & PD, UM

25/50/10

Montana

BI & PD

25/50/20

Nebraska

BI & PD, UM, UIM

25/50/25

Nevada

BI & PD

15/30/10

New Hampshire

Financial Responsibility only (liability insurance is not mandatory), UM

25/50/25

New Jersey

BI & PD, PIP, UM, UIM

15/30/5

(Optional basic policy limits are 10/10/5 without UM and UIM.)

New Mexico

BI & PD

25/50/10

New York

BI & PD, PIP, UM

25/50/10

(In addition, policyholders must have 50/100 for wrongful death coverage.)

North Carolina

BI & PD, UM, UIM

30/60/25

North Dakota

BI & PD, PIP, UM, UIM

25/50/25

Ohio

BI & PD

25/50/25

Oklahoma

BI & PD

25/50/25

Oregon

BI & PD, PIP, UM, UIM

25/50/20

Pennsylvania

BI & PD, PIP

15/30/5

Rhode Island

BI & PD

25/50/25

South Carolina

BI & PD, UM

25/50/25

South Dakota

BI & PD,UM, UIM

25/50/25

Tennessee

BI & PD

25/50/15

Texas

BI & PD

30/60/25

Utah

BI & PD, PIP

25/65/15

Vermont

BI & PD, UM, UIM

25/50/10

Virginia

BI & PD*, UM, UIM

(*compulsory to buy insurance or pay an Uninsured Motorists Vehicle fee to the Department of Motor Vehicles)

25/50/20

Washington

BI & PD

25/50/10

West Virginia

BI & PD, UM

25/50/25

Wisconsin

BI & PD, UM

25/50/10

Wyoming

BI & PD

25/50/20

Source: Insurance Information Institute

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