What Auto Insurance is Required by Law?

If you own a car, you are legally required to have auto insurance. However, the specific type and amount of insurance you need depends on the state you live in. Each state has its own laws, so it’s important to understand what is required where you live. Meeting with an independent insurance broker, like our company, can help you make the right decision when choosing the best coverage for your needs.

Why is Auto Insurance Required?

Auto insurance is required to help protect drivers, passengers, and pedestrians from financial loss in case of an accident. Without insurance, drivers would have to pay out-of-pocket for damages, medical bills, and legal fees, which can be extremely expensive. Requiring insurance ensures that all drivers can cover at least some of the costs if they cause an accident.

Minimum Car Insurance Coverage Requirements

Each state sets its own minimum insurance requirements. The most common type of required insurance is liability insurance, which covers damages and injuries you cause to others. Here’s a breakdown of what liability insurance typically includes:

• Bodily Injury Liability (BIL) – Covers medical expenses, lost wages, and legal fees if you injure someone in an accident.
• Property Damage Liability (PDL) – Pays for repairs to someone else’s vehicle or property if you cause an accident.

Some states also require additional coverage, such as:

• Uninsured/Underinsured Motorist Coverage (UM/UIM) – Protects you if you are hit by a driver who has no insurance or not enough coverage.
• Personal Injury Protection (PIP) – Helps pay for medical expenses and lost wages for you and your passengers, regardless of who is at fault.
• Medical Payments (MedPay) – Similar to PIP but with fewer benefits.

State-by-State Requirements: Which Insurance Products

Since each state has its own laws regarding insurance, the exact requirements will vary depending on where you live. Some states require only basic liability insurance, while others have additional coverage requirements. To ensure you meet your state’s legal requirements, it’s best to speak with an independent insurance broker like us who can guide you based on your location. Since we work with people in multiple states, we don’t have a one size fits all approach.

What Happens If You Don’t Have the Required Insurance?

Driving without the required auto insurance can lead to serious consequences, including:

• Fines and Penalties – Most states issue fines or penalties for uninsured drivers.
• License Suspension – You may have your driver’s license or vehicle registration suspended.
• Legal Consequences – In some cases, you could face lawsuits or even jail time.
• Higher Insurance Costs – If you get caught driving without insurance, your future premiums may increase.

How to Choose the Right Auto Coverage – Get A Car Insurance Quote

Meeting the legal requirements is just the starting point. Many drivers choose to get more coverage than the minimum required to better protect themselves, and you may be able to get a discount if you meet some of the requirements. An independent insurance broker can help you get a quote today:

• Understand what coverage is required in your state.
• Find the best policy for your budget and needs.
• Get additional protection beyond the minimum requirements.

We can help you by explaining what you need and giving you in depth comparisons from multiple companies for you to compare. We’re here to help you get the coverage that’s right for you. Get a free auto insurance quote today.