Can I drive legally without insurance?
 

NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.

If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.

Below is an example of the state minimum limits for auto liability insurance. The first number refers to liability limits for bodily injury for any one person, the second to limits for all persons injured, and the third refers to property damage liability limits. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual and $10,000 coverage for property damage.

   
 

State
 Insurance required (1)
Minimum liability limits (2)
State
 Insurance required (1)
Minimum liability limits (2)
AL BI & PD Liab 20/40/10 MT BI & PD Liab 25/50/10
AK BI & PD Liab 50/100/25 NE BI & PD Liab 25/50/25
AZ BI & PD Liab 15/30/10 NV BI & PD Liab 15/30/10
AR BI & PD Liab, PIP 25/50/25 NH FR only, UM 25/50/25
CA BI & PD Liab 15/30/5 (3) NJ BI & PD Liab, PIP, UM 15/30/5 (7)
CO BI & PD Liab 25/50/15 NM BI & PD Liab 25/50/10
CT BI & PD Liab, UM, UIM 20/40/10 NY BI & PD Liab, PIP, UM 25/50/10 (8)
DE BI & PD Liab, PIP 15/30/10 NC BI & PD Liab 30/60/25
DC BI & PD Liab, UM 25/50/10 ND BI & PD Liab, PIP, UM 25/50/25
FL PD Liab, PIP 10/20/10 (4) OH BI & PD Liab 12.5/25/7.5
GA BI & PD Liab 25/50/25 OK BI & PD Liab 25/50/25
HI BI & PD Liab, PIP 20/40/10 OR BI & PD Liab, PIP, UM 25/50/10
ID BI & PD Liab 25/50/15 PA BI & PD Liab, PIP 15/30/5
IL BI & PD Liab, UM 20/40/15 RI BI & PD Liab, UM 25/50/25 (4)
IN BI & PD Liab 25/50/10 SC BI & PD Liab, UM 25/50/25
IA BI & PD Liab 20/40/15 SD BI & PD Liab, UM 25/50/25
KS BI & PD Liab, PIP, UM 25/50/10 TN BI & PD Liab 25/50/10 (4)
KY BI & PD Liab, PIP 25/50/10 TX BI & PD Liab 20/40/15*
LA BI & PD Liab 10/20/10 UT BI & PD Liab, PIP 25/50/15 (4)
ME BI & PD Liab, UM, UIM  50/100/25 (5) VT BI & PD Liab, UM, UIM 25/50/10
MD BI & PD Liab, PIP (6), UM 20/40/15 VA BI & PD Liab, UM 25/50/20
MA BI & PD Liab, PIP, UM 20/40/5 WA BI & PD Liab 25/50/10
MI BI & PD Liab, PIP 20/40/10 WV BI & PD Liab, UM 20/40/10
MN BI & PD Liab, PIP, UM, UIM 30/60/10 WI FR only, UM 25/50/10
MS BI & PD Liab 25/50/25 WY BI & PD Liab 25/50/20
MO BI & PD Liab, UM 25/50/10      
(1) Compulsory coverage's:
  BI Liab = Bodily injury liability
  PD Liab = Property damage liability
  UM = Uninsured motorist
  PD = Physical damage
  Med = First party (policyholder) medical expenses
  UIM = Underinsured motorist
  PIP = Personal Injury Protection. Mandatory in no-fault states.  Includes medical, rehabilitation, loss of earnings and funeral expenses.  In some states PIP includes essential services such as child care.
  FR = Financial responsibility only.  Insurance not compulsory.
       
(2) The first two numbers refer to bodily injury liability limits and the third number to property liability. 
  For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual, and $10,000 coverage for property damage.
       
(3) Low-cost policy limits for low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3.
 
(4) Instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy. Amounts vary by state.
 
(5) In addition, policyholders must also carry at least $1,000 for medical payments.
 
(6) May be waived for the policyholder but is compulsory for passengers.
 
(7) Basic policy (optional) limits are 10/10/5. Uninsured and underinsured motorist coverage not available under the basic policy but uninsured motorist coverage is required under the standard policy.
 
(8) In addition, policyholders must have 50/100 for wrongful death coverage.
 
*Minimum coverage requirements will increase to 25/50/25 on April 1, 2008 and to 30/60/30 on January 1, 2011.
Source: Property Casualty Insurers Association of America; state departments of insurance.
 

 

Contact your PHD Protection Team and see how a properly structured insurance program can work for you and your family!
 
Source: Insurance Information Institute.