How Much Car Insurance Do I Need?

Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.

Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.

Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.

Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance.

As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.

As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.

As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.

As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.

| Lead Editor, Insurance

Updated: Jan 17, 2024, 10:41am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

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Every state has a minimum amount of car insurance you must buy to satisfy financial responsibility laws. Liability insurance is the main mandated coverage. It covers damage and injuries you cause to others in an accident.

The most common minimum limits for liability are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for physical damage. But your state’s requirements may be higher or lower. The key to figuring out how much car insurance you need is knowing your state’s requirements and examining your specific situation.

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How Much Car Insurance Do I Need?

Beyond what is required by state car insurance laws and your lender, you need enough car insurance to pay for injuries, property damage and lawsuits that may arise from an accident if you don’t have enough savings to pay for them otherwise. And even if you do have the savings, can you afford to spend it all on a car accident? If you’re like most people, the answer to that question is no.

The National Association of Insurance Commissioners recommends enough car insurance to:

• Comply with state laws
• Satisfy your lender
• Protect your assets

What Car Insurance Coverage Do I Need?

Most states require that car owners buy liability car insurance, but coverage requirements vary by state. Depending on where you live, you may be required to buy additional types of car insurance, such as uninsured motorist coverage, personal injury protection or medical payments coverage.

Drivers who lease or finance their vehicles are usually required to buy collision and comprehensive insurance.

Here are common car insurance coverage options and recommended coverage amounts for each. These are general recommendations, so it is important to assess your personal financial situation to determine your needs.

Coverage Adequate Good Even better Liability car insurance State minimum $100,000 per person for bodily injury liability

$300,000 per accident for bodily injury liability

$500,000 per accident for bodily injury liability

Car Insurance Requirements by State

Every state has a financial responsibility law for vehicles, which most drivers satisfy by buying car insurance.

The minimum amount of auto insurance you need to buy varies by state. But no matter where you live, liability car insurance—which covers damage and injuries you cause others in an accident—is the main required coverage. The minimum car insurance required by your state is important to know, but this amount may not be adequate for your needs.

Car Insurance Requirements by State

State Bodily injury liability (per person/per accident) Property damage liability (per accident) Other car insurance requirments Alabama $25,000 per person
$50,000 per accident $25,000 None Alaska $50,000 per person
$100,000 per accident $25,000 None Arizona $25,000 per person
$50,000 per accident $15,000 None Arkansas $25,000 per person
$50,000 per accident $25,000 None California $15,000 per person
$30,000 per accident $5,000 None Colorado $25,000 per person
$50,000 per accident $15,000 None Connecticut $25,000 per person
$50,000 per accident $25,000 Uninsured/underinsured motorist bodily injury:
$25,000 per person
$50,000 per accident Delaware $25,000 per person
$50,000 per accident $10,000 Personal injury protection:
$15,000 per person
$30,000 per accident Florida $10,000 per person
$20,000 per accident $10,000 Personal injury protection:
$10,000 Georgia $25,000 per person
$50,000 per accident $25,000 None Hawaii $20,000 per person
$40,000 per accident $10,000 Personal injury protection:
$10,000 Idaho $25,000 per person
$50,000 per accident $15,000 None Illinois $25,000 per person
$50,000 per accident $20,000 Uninsured motorist bodily injury:
$25,000 per person
$50,000 per accident Indiana $25,000 per person
$50,000 per accident $25,000 None Iowa $25,000 per person
$40,000 per accident $15,000 None Kansas $25,000 per person
$50,000 per accident $25,000

Personal injury protection:
$4,500

Uninsured/underinsured motorist bodily injury:
$25,000 per person
$50,000 per accident

Medical payments:
$2,000

Uninsured/underinsured motorist bodily injury:
$50,000 per person
$100,000 per accident

Uninsured/underinsured motorist bodily injury:
$30,000 per person
$60,000 per accident

Uninsured/underinsured motorist bodily injury:
$25,000 per person
$50,000 per accident