Auto Insurance Requirements by State
Auto Insurance Requirements by State
Learn why liability requirements differ by state, which coverages may be required, and why the legal minimum is only one part of selecting your auto insurance protection.
There Is No Single Nationwide Auto Insurance Minimum
Auto insurance laws are primarily established at the state level. That means a driver in California may have different minimum requirements than a driver in Texas, Utah, Michigan, or South Carolina.
Most states require liability protection, but the required dollar amounts differ. Some states also have additional requirements involving Personal Injury Protection, uninsured motorist coverage, or other state-specific protections.
The legal minimum tells you what may be required to comply with state law. It does not automatically tell you how much coverage is appropriate for your personal financial situation.
What Does 30 / 60 / 15 Mean?
States commonly express liability insurance requirements using three numbers. Here’s how to read them.
Bodily Injury Per Person
The maximum available for covered bodily injury to one person, subject to policy terms.
Bodily Injury Per Accident
The maximum available for covered bodily injury to multiple people in one accident.
Property Damage
The maximum available for covered damage you cause to another person’s property.
Minimum Liability Limits at a Glance
This chart shows the traditional liability limits for the Best Formula Insurance states that fit a standard split-limit comparison.
| State | BI / Person | BI / Accident | Property Damage | Common Format |
|---|---|---|---|---|
| California | $30,000 | $60,000 | $15,000 | 30/60/15 |
| Nevada | $25,000 | $50,000 | $20,000 | 25/50/20 |
| Utah | $30,000 | $65,000 | $25,000 | 30/65/25* |
| Colorado | $25,000 | $50,000 | $15,000 | 25/50/15 |
| Arizona | $25,000 | $50,000 | $15,000 | 25/50/15 |
| New Mexico | $25,000 | $50,000 | $10,000 | 25/50/10 |
| Texas | $30,000 | $60,000 | $25,000 | 30/60/25 |
| Illinois | $25,000 | $50,000 | $20,000 | 25/50/20 |
| Ohio | $25,000 | $50,000 | $25,000 | 25/50/25 |
| South Carolina | $25,000 | $50,000 | $25,000 | 25/50/25** |
Explore Requirements by State
Select a state to open its coverage snapshot. This keeps the guide informative without creating an overwhelming wall of information.
California
30 / 60 / 15
Bodily injury per person
Bodily injury per accident
Property damage
California’s minimum liability requirements increased to 30/60/15 beginning January 1, 2025. Drivers may purchase higher limits.
Nevada
25 / 50 / 20
Bodily injury per person
Bodily injury per accident
Property damage
Utah
PIP STATE
Bodily injury per person
Bodily injury per accident
Property damage
Personal Injury Protection
Utah uses a no-fault system and requires PIP protection. Current state guidance describes the first $3,000 of qualifying medical expenses for an injured person in the insured vehicle as being addressed through PIP before a bodily injury claim against the responsible insurer.
Colorado
25 / 50 / 15
Bodily injury per person
Bodily injury per accident
Property damage
Colorado requires vehicle owners to maintain liability insurance. Uninsured and underinsured motorist bodily injury coverage is generally offered with the policy and may be rejected or reduced according to applicable requirements.
Arizona
25 / 50 / 15
Bodily injury per person
Bodily injury for two or more people
Property damage
Arizona requires liability insurance for vehicles operated on Arizona roadways. Insurers electronically report policy activity to the Motor Vehicle Division.
New Mexico
25 / 50 / 10
Bodily injury per person
Bodily injury for two or more people
Property damage
New Mexico uses an Insurance Identification Database to match insurance information reported by insurers with registered vehicles.
Texas
30 / 60 / 25
Bodily injury per person
Bodily injury per accident
Property damage
Illinois
25 / 50 / 20
Injury or death of one person
Injury or death of multiple people
Property damage
Illinois requires liability insurance for motor vehicles that must display license plates and are being driven. Drivers are expected to maintain proof of insurance.
Michigan
NO-FAULT
Michigan has one of the most distinctive personal auto insurance systems in this guide. A Michigan no-fault policy has three mandatory core components.
Personal Injury Protection
PIP addresses qualifying medical care and other no-fault benefits. Michigan provides several PIP medical coverage choices, subject to eligibility rules.
Property Protection Insurance
PPI provides up to $1 million for certain damage your vehicle causes in Michigan to other people’s property, including certain properly parked vehicles.
Residual BI / PD
Michigan’s default bodily injury limits are $250,000 per person / $500,000 per accident. Eligible drivers may select lower limits, but generally not below $50,000 / $100,000, with $10,000 for certain property damage outside Michigan.
Michigan cannot accurately be summarized with the same simple three-number structure used for most other states.
Ohio
25 / 50 / 25
Bodily injury per person
Bodily injury per accident
Property damage
Ohio’s financial responsibility requirements use minimum liability amounts of 25/50/25 for qualifying motor vehicle liability coverage.
South Carolina
UM REQUIRED
Bodily injury per person
Bodily injury per accident
Property damage
Uninsured Motorist Coverage Is Also Required
South Carolina requires uninsured motorist coverage at the state’s minimum liability amounts. Underinsured motorist coverage must generally be offered but is not required to be purchased.
Not Every Auto Coverage Is Required the Same Way
Liability
The most common state-required protection. Minimum limits vary by state.
PIP / No-Fault
Especially important in states such as Utah and Michigan, which use no-fault structures.
Uninsured Motorist
State rules differ. South Carolina is an example of a state where UM coverage is required.
Collision
Generally not a standard state liability requirement, but it may be required by a lender or leasing company.
Comprehensive
Generally optional under state financial responsibility laws but may be required by a lender.
Lender Requirements
Financing or leasing requirements can be broader than what state law requires.
Legal Minimums Can Be Lower Than the Cost of a Serious Accident
State minimum requirements establish a legal baseline. Modern medical expenses, vehicle repair costs, and multi-vehicle accidents can potentially exceed those amounts.
Modern Vehicles
Sensors, cameras, lighting systems, airbags, and body components can make even moderate vehicle damage expensive.
Serious Injuries
Medical treatment, rehabilitation, lost wages, and other covered damages can become substantial.
Amounts Above the Limit
If covered damages exceed available liability limits, the insured may face financial exposure for amounts the policy does not pay.
Moving Can Change More Than Your Address
Permanently relocating to another state can affect minimum liability limits, required coverages, insurance forms, registration requirements, pricing, and how proof of insurance is verified.
Tell your insurance company or agent when you permanently relocate rather than assuming your existing policy can remain unchanged.
Moving?
Review your insurance and vehicle registration requirements before or shortly after relocating.
After You Know the Minimum, Ask Better Questions
State Minimums Are Only the Beginning
Continue learning about liability limits, deductibles, collision, comprehensive, uninsured motorists, auto insurance pricing, and other Personal Auto topics.
State Auto Insurance Requirements FAQ
Does every state require the same auto insurance?
No. Minimum limits and mandatory coverages vary by state. States such as Michigan and Utah also have no-fault or PIP-related requirements that differ from traditional liability-only systems.
Does buying the state minimum mean I have enough insurance?
Not necessarily. A state minimum establishes a legal baseline. The financial cost of a serious accident can exceed minimum liability limits.
Which Best Formula states have especially different requirements?
Michigan has a comprehensive no-fault structure that includes PIP, PPI, and residual BI/PD coverage. Utah also uses a no-fault PIP system. South Carolina requires uninsured motorist coverage in addition to liability coverage.
Is collision insurance required by state law?
Collision coverage is generally not part of the traditional minimum liability requirement. However, lenders and leasing companies commonly require physical damage coverage while they have a financial interest in the vehicle.
Is comprehensive insurance required by state law?
Comprehensive coverage is generally optional under state financial responsibility laws, although a lender or leasing company may require it.
Is uninsured motorist coverage required?
Requirements vary by state. For example, South Carolina requires uninsured motorist coverage at minimum liability limits. In other states, the coverage may instead be offered with an option to reject or select different limits.
What happens to my insurance if I move to another state?
A permanent move may require your policy to be rewritten because insurance laws, required coverages, policy forms, registration procedures, and rating factors can change by state.
Can I buy higher liability limits than my state requires?
Generally, yes. Drivers commonly have options above the legal minimum, subject to insurer underwriting and available policy limits.
Why did California’s minimum limits change?
California increased its minimum liability limits beginning January 1, 2025. This is a useful reminder that state requirements can change and should be periodically verified.
Should I choose auto insurance based only on the state minimum?
The legal requirement is only one factor. Consider your financial exposure, vehicle value, liability limits, physical damage needs, uninsured motorist options, deductibles, lender requirements, and budget.
Understand the Requirement. Then Choose Your Protection.
Best Formula Insurance can help you understand your state’s auto insurance requirements, compare liability limits, review collision and comprehensive coverage, and explore available carrier options.
This material is provided for general educational and informational purposes only and does not constitute legal advice, insurance advice, a coverage recommendation, a guarantee of current state requirements, or a contract of insurance. State financial responsibility laws, minimum liability limits, mandatory coverages, Personal Injury Protection requirements, no-fault provisions, uninsured and underinsured motorist requirements, proof-of-insurance rules, registration requirements, and penalties may change. The summaries provided on this page do not address every exception, alternative form of financial responsibility, vehicle type, eligibility rule, or individual circumstance. Insurance coverage, limits, deductibles, exclusions, availability, underwriting requirements, and policy forms vary by insurance company and state. Always verify current requirements with the applicable state agency and review the actual insurance policy. Please consult a licensed insurance professional regarding insurance options appropriate for your circumstances.