OLR Research Report


June 27, 2013

 

2013-R-0258

AUTO LIABILITY INSURANCE REQUIREMENTS IN OTHER STATES

By: Janet L. Kaminski Leduc, Senior Legislative Attorney

You asked which states require people to purchase (1) auto liability insurance, (2) uninsured motorist coverage, and (3) underinsured motorist coverage. In states that require auto liability insurance, you want to know the minimum levels of insurance required.

Information for this report comes from the Insurance Information Institute's June 2013 report titled Compulsory Auto/Uninsured Motorists (http://www.iii.org/issues_updates/compulsory-auto-uninsured-motorists.html).

SUMMARY

Auto liability insurance is mandatory in 49 states and the District of Columbia. New Hampshire, the only state that does not require auto liability insurance, requires drivers to show that they are able to provide sufficient funds in the case of an at-fault accident (i.e., financial responsibility). Liability insurance generally pays another driver's medical, vehicle repair, and other costs when the policyholder is the at-fault driver in an accident. It covers (1) bodily injury (BI) per person and per accident and (2) property damage (PD). (Table 1 below lists the minimum liability limits required in each jurisdiction.)

Twenty two jurisdictions require uninsured motorist coverage (UM): Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin. UM compensates policyholders when another driver who is at fault for the accident (1) has no auto liability insurance or (2) is a hit-and-run driver.

Fourteen states require underinsured motorist coverage (UIM): Connecticut, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oregon, South Dakota, Vermont, Virginia, and Wisconsin. UIM compensates a policyholder when the at-fault driver has an insufficient amount of auto liability insurance.

For a more detailed look at Connecticut's auto insurance requirements, see OLR Research Report 2008-R-0493.

Table 1: Auto Insurance Requirements by State, June 2013

State

Insurance Required

Minimum Liability Limits

(in thousands of $)

Alabama

Bodily injury and property damage liability (BI & PD)

25/50/25.

The first number refers to BI liability limit for one person injured in an accident ($25,000). The second number refers to BI liability limit for all persons injured in an accident ($50,000). The third number refers to the PD liability limit ($25,000).

Alaska

BI & PD

50/100/25

Arizona

BI & PD

15/30/10

Arkansas

BI & PD, Personal Injury Protection (PIP)

(PIP is mandatory in no-fault states and generally covers medical, rehabilitation, loss of earnings, and funeral expenses.)

25/50/25

California

BI & PD

15/30/5

(Low-cost policy limits for low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3.)

Colorado

BI & PD

25/50/15

Connecticut

BI & PD, UM, UIM

20/40/10

Delaware

BI & PD, PIP

15/30/10

District of Columbia

BI & PD, UM

25/50/10

Florida

BI & PD, PIP

10/20/10

Georgia

BI & PD

25/50/25

Hawaii

BI & PD, PIP

20/40/10

Idaho

BI & PD

25/50/15

Illinois

BI & PD, UM

20/40/15

Indiana

BI & PD

25/50/10

Iowa

BI & PD

20/40/15

Kansas

BI & PD, PIP, UM

25/50/10

Kentucky

BI & PD, PIP

25/50/10

Louisiana

BI & PD

15/30/25

Maine

BI & PD, UM, UIM

50/100/25

Maryland

BI & PD, PIP, UM, UIM

30/60/15

Massachusetts

BI & PD, PIP, UM, UIM

20/40/5

Michigan

BI & PD, PIP

20/40/10

Minnesota

BI & PD, PIP, UM, UIM

30/60/10

Mississippi

BI & PD

25/50/25

Missouri

BI & PD, UM

25/50/10

Montana

BI & PD

25/50/10

Nebraska

BI & PD, UM, UIM

25/50/25

Nevada

BI & PD

15/30/10

New Hampshire

Financial Responsibility only (liability insurance is not mandatory), UM

25/50/25

New Jersey

BI & PD, PIP, UM, UIM

15/30/5

(Optional basic policy limits are 10/10/5 without UM and UIM.)

New Mexico

BI & PD

25/50/10

New York

BI & PD, PIP, UM

25/50/10

(In addition, policyholders must have 50/100 for wrongful death coverage.)

North Carolina

BI & PD, UM, UIM

30/60/25

North Dakota

BI & PD, PIP, UM, UIM

25/50/25

Ohio

BI & PD

12.5/25/7.5

(Effective December 22, 2013, Ohio's limits increase to 25/50/25.)

Oklahoma

BI & PD

25/50/25

Oregon

BI & PD, PIP, UM, UIM

25/50/20

Pennsylvania

BI & PD, PIP

15/30/5

Rhode Island

BI & PD

25/50/25

South Carolina

BI & PD, UM

25/50/25

South Dakota

BI & PD,UM, UIM

25/50/25

Tennessee

BI & PD

25/50/15

Texas

BI & PD

30/60/25

Utah

BI & PD, PIP

25/65/15

Vermont

BI & PD, UM, UIM

25/50/10

Virginia

BI & PD*, UM, UIM

(*compulsory to buy insurance or pay an Uninsured Motorists Vehicle fee to the Department of Motor Vehicles)

25/50/20

Washington

BI & PD

25/50/10

West Virginia

BI & PD, UM

20/40/10

Wisconsin

BI & PD, UM, UIM

25/50/10

Wyoming

BI & PD

25/50/20

Source: Insurance Information Institute

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