Auto insurance rules vary dramatically from state to state. Understanding local requirements, typical costs, and regional risk factors helps you secure compliant coverage at competitive rates.
Licensed agents at 1-800-INSURANCE (1-800-467-8726) can explain your state's rules and connect you with carriers who serve your area.
Why State Requirements Matter#
Every state except New Hampshire mandates some form of financial responsibility, typically satisfied through auto insurance. Minimum limits, available coverages, and enforcement methods differ widely. Driving without proper coverage can trigger fines, license suspension, vehicle impoundment, or personal liability for damages.
Understanding Liability Coverage#
Most states require liability insurance covering bodily injury and property damage you cause to others. Common formats include:
- Split limits: Separate per-person and per-accident caps (e.g., 25/50/25).
- Combined single limits: One total per-accident cap covering all damages.
State minimums rarely cover serious accidents. Many drivers carry 100/300/100 or higher to protect assets.
Personal Injury Protection (PIP) and No-Fault States#
About a dozen states operate no-fault systems requiring PIP coverage. PIP pays medical bills and lost wages for you and passengers regardless of who caused the accident. No-fault states include Florida, Michigan, New Jersey, New York, Pennsylvania (choice), and others. PIP limits and mandatory vs. optional status vary by state.
Uninsured/Underinsured Motorist Coverage#
Some states mandate uninsured motorist (UM) coverage; others make it optional. UM protects you when hit by drivers lacking insurance or fleeing the scene. Given national uninsured rates around 13%, this coverage is often recommended even when optional.
State-by-State Snapshots#
California#
- Minimum liability: 15/30/5
- Average annual premium: ~$2,190
- Key factors: High uninsured rates, dense traffic in metros, wildfire and weather risks
- Notes: Requires proof of coverage; DMV can suspend registration for lapses. Proposition 103 restricts rating factors and requires prior approval for rate changes.
Texas#
- Minimum liability: 30/60/25
- Average annual premium: ~$1,975
- Key factors: Hail, flooding, hurricanes along coast; high uninsured driver estimates
- Notes: TexasSure tracks coverage electronically. Lapses trigger fines and registration issues.
Florida#
- Minimum coverage: $10,000 PIP + $10,000 property damage liability (no bodily injury liability required unless convicted of certain offenses)
- Average annual premium: ~$2,560
- Key factors: Hurricanes, flooding, high litigation rates, frequent uninsured drivers
- Notes: No-fault state with mandatory PIP. Bodily injury liability recommended despite not being required for most drivers.
New York#
- Minimum liability: 25/50/10 + $50,000 injury/death per person (no-fault)
- Average annual premium: ~$2,800
- Key factors: Dense urban traffic, high costs in NYC metro, weather risks
- Notes: No-fault state with mandatory PIP. Uninsured motorist coverage required unless rejected in writing.
Pennsylvania#
- Minimum options: Choice between full tort (25/50/5 + first-party benefits) or limited tort with lower premiums but restricted lawsuit rights
- Average annual premium: ~$1,840
- Key factors: Winter weather, deer collisions, urban/rural rate differences
- Notes: No-fault option available. PIP (called "first-party benefits") mandatory.
Ohio#
- Minimum liability: 25/50/25
- Average annual premium: ~$1,200
- Key factors: Moderate climate risks, lower urban density in most areas
- Notes: Proof of coverage required at registration and traffic stops.
Georgia#
- Minimum liability: 25/50/25
- Average annual premium: ~$2,150
- Key factors: Atlanta metro traffic density, severe weather including tornadoes
- Notes: Electronic insurance verification system; lapses reported to DDS and can trigger registration suspension.
North Carolina#
- Minimum liability: 30/60/25 + $25,000 uninsured motorist bodily injury
- Average annual premium: ~$1,470
- Key factors: Coastal hurricane exposure, moderate traffic density
- Notes: Uninsured motorist coverage mandatory. State operates assigned risk plan (reinsurance facility) for high-risk drivers.
Michigan#
- Minimum liability: 50/100/10 + mandatory unlimited PIP (or optional lower PIP limits under recent reforms)
- Average annual premium: Historically highest in nation; reforms reducing costs
- Key factors: No-fault system with unlimited medical benefits (recently reformed to allow choice), high fraud rates
- Notes: 2019 reforms allow drivers to choose PIP limits, lowering premiums for many.
Illinois#
- Minimum liability: 25/50/20 + $25,000/$50,000 uninsured motorist
- Average annual premium: ~$1,675
- Key factors: Chicago metro drives higher rates; winter weather risks
- Notes: Uninsured motorist coverage mandatory unless rejected in writing.
Regional Rate Factors#
Premiums vary within states based on:
- Urban vs. rural: Cities see higher theft, accident frequency, and repair costs.
- Weather patterns: Hail corridors, hurricane zones, flood plains, and winter severity.
- Legal environment: States with high litigation or medical cost trends often have higher premiums.
- Uninsured rates: Areas with more uninsured drivers face elevated UM claims.
Proof of Insurance Requirements#
Most states require proof when registering vehicles, renewing registration, or during traffic stops. Electronic verification systems track coverage in real time in many states. Lapses can trigger automatic penalties.
High-Risk and Assigned Risk Programs#
Drivers with violations, lapses, or claims may face nonstandard or assigned risk markets. State-run programs ensure availability but at higher premiums. Maintaining continuous coverage and clean records helps transition back to standard markets.
Shopping Across State Lines#
If you move, notify your insurer immediately. Coverage, rates, and requirements change at state borders. Some carriers operate nationwide; others are regional. Agents can facilitate smooth transitions.
Special State Programs and Discounts#
Some states mandate specific discounts (good student, defensive driving) or prohibit certain rating factors (credit score restrictions in California, Hawaii, Massachusetts). Understanding state-specific programs ensures you capture available savings.
Next Steps#
Review your state's insurance department website for official minimums, complaint ratios, and rate comparisons. Compare quotes from multiple carriers using identical limits. Verify your preferred providers and vehicles are covered in-network.
Call 1-800-INSURANCE (1-800-467-8726) to connect with agents familiar with your state's rules and multi-carrier options.