Your Guide to Car Insurance Requirements State-by-State

By Justin Yoshizawa and the Mercury Team

Car insurance requirements can look different depending on where you live. Each state sets its own rules for the types of coverage drivers need, the minimum limits they must carry, and the penalties for driving without insurance.

This guide explains how car insurance requirements vary by state, what common coverage types mean, and why it may be worth reviewing your policy with a local Mercury agent to make sure your coverage fits your needs.

Are Car Insurance Requirements Different in Every State?

Yes. The type and amount of insurance you need will vary by location, as each state manages its own driving laws. Some states require only liability coverage, which pays for damage you cause to others. Other states may also require personal injury protection (PIP), uninsured and underinsured motorist coverage, or medical payments coverage.

You should periodically check your state’s current requirements or talk with your local agent to ensure your policy remains compliant, since these laws regularly change.

Minimum Car Insurance Requirements vs. Recommended Coverage

Minimum car insurance requirements help you stay legally compliant in your state. But minimum coverage is not always enough to fully protect you after a serious accident.

Think of it this way:

• Minimum coverage is the amount your state requires you to carry.
• Recommended coverage is the amount that may better protect your finances, vehicle, and assets.

State minimums are designed to help drivers take basic financial responsibility for accidents they cause. However, repair costs, medical bills, and legal expenses can add up quickly. If those costs exceed your policy limits, you may have to pay the difference out of pocket.

“Minimum coverage may be enough to satisfy state law, but it may not be enough after a costly accident,” says Justin Yoshizawa, Director, Product Management. “That’s why it’s worth reviewing your limits and making sure your policy fits your needs.”

Common Types of Required Car Insurance Coverage

You may be legally required to carry one or more of the following types of car insurance coverage.

Liability Coverage

Liability coverage is the foundation of almost every auto insurance policy. It’s split into two parts: bodily injury liability and property damage liability. If you’re at fault in an accident, bodily injury helps pay for the other party's medical expenses, while property damage helps repair or replace their vehicle or property. It doesn’t cover your own injuries or damages.

Personal Injury Protection

Personal injury protection (PIP) is typically mandatory in no-fault states. PIP helps cover medical expenses, lost wages, and sometimes essential services (like child care) for you and your passengers after an accident, regardless of who caused the collision.

Uninsured and Underinsured Motorist Coverage

Some drivers still hit the road without insurance, even though insurance is legally required. Uninsured and underinsured motorist coverage protects you if you are hit by a driver who either has no insurance or doesn’t have high enough limits to cover your resulting medical bills or property damage.

Auto Insurance Requirements by State

Here’s a quick look at the minimum auto insurance requirements in the states where Mercury offers coverage. You may see limits written as three numbers, such as 25/50/15. That usually means:

• $25,000 bodily injury coverage per person
• $50,000 bodily injury coverage per accident
• $15,000 property damage coverage per accident

Requirements can change, so it’s always a good idea to check your state’s current rules or talk with a Mercury agent to make sure your policy meets the right requirements.

Arizona Auto Insurance Requirements

Arizona drivers must carry liability insurance to legally drive. The state minimums are 25/50/15:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $15,000 for property damage liability

Drivers who want more protection from their Arizona auto insurance may want to consider higher liability limits or additional coverage options.

California Auto Insurance Requirements

California drivers must carry liability insurance. The state minimums are 30/60/15:

• $30,000 for injury or death to one person
• $60,000 for injury or death to more than one person
• $15,000 for property damage

Review the latest California auto insurance requirements and consider whether minimum coverage gives you enough protection.

Florida Auto Insurance Requirements 

Florida auto insurance requirements work a little differently because the state uses a no-fault system. Drivers must carry at least:

• $10,000 in personal injury protection, or PIP
• $10,000 in property damage liability, or PDL

Bodily injury liability is not required for all standard drivers in Florida, but it’s still worth considering. A Mercury agent can help you understand what coverage fits your needs.

Georgia Auto Insurance Requirements

The Georgia auto insurance requirements consist of a minimum liability limit of 25/50/25:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $25,000 for property damage liability

Drivers may choose higher limits for added financial protection after a serious accident.

Illinois Auto Insurance Requirements

Illinois drivers must carry liability insurance. The minimums for Illinois auto insurance are 25/50/20:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $20,000 for property damage liability

The state also requires drivers to carry uninsured motorist bodily injury coverage at matching limits of $25,000 per person and $50,000 per accident.

Nevada Auto Insurance Requirements

Nevada drivers must carry liability insurance with minimum limits of 25/50/20. That includes:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $20,000 for property damage liability

Keep proof of Nevada auto insurance available and review whether additional coverage makes sense for your vehicle, budget, and driving habits.

New Jersey Auto Insurance Requirements

New Jersey requires drivers to carry auto insurance, but coverage can vary depending on the policy type. The state offers Basic and Standard policy options, and the Standard Policy provides more coverage choices.

For Standard Policies issued or renewed on or after Jan. 1, 2026, minimum liability limits are:

• $35,000 for bodily injury per person
• $70,000 for bodily injury per accident
• $25,000 for property damage liability

You should review your New Jersey auto insurance options carefully and talk with an agent about required PIP, uninsured motorist coverage, and other available protections.

New York Auto Insurance Requirements

New York is another no-fault state. New York auto insurance requirements dictate that drivers must carry:

• $25,000 for bodily injury per person
• $50,000 per accident
• $10,000 for property damage

Drivers must also carry $50,000 in PIP coverage and uninsured motorist coverage.

Oklahoma Auto Insurance Requirements

Oklahoma drivers must carry liability insurance with minimum limits of 25/50/25. That includes:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $25,000 for property damage liability

Meeting Oklahoma auto insurance requirements helps you stay legally compliant, but higher limits may provide more protection if an accident exceeds the state minimums.

Texas Auto Insurance Requirements

The Texas auto insurance requirements set the minimum liability limits at 30/60/25: 

• $30,000 for bodily injury per person
• $60,000 for bodily injury per accident
• $25,000 for property damage property

A local Mercury agent can help you review your options and decide whether higher limits make sense.

Virginia Auto Insurance Requirements

The state minimum requirements for Virginia auto insurance are 50/100/25:

• $50,000 for injury or death of one person
• $100,000 for injury or death of two or more people per accident
• $25,000 for property damage

Why Minimum Coverage May Not Be Enough

Minimum coverage can help you meet your state’s legal requirements, but it may not cover the full cost of a serious accident. Medical bills, vehicle repairs, and other expenses can add up quickly, especially after a multi-car crash or an accident involving injuries.

If those costs exceed your policy limits, you may have to pay the difference out of pocket. That’s why it’s worth thinking about more than the minimum when choosing your coverage.

Consider your vehicle, savings, assets, daily driving habits, and budget as you review your options. Higher liability limits, along with comprehensive coverage and collision protection, will give you added protection and more confidence on the road.

What Happens If You Drive Without Required Insurance?

Driving without the required minimum insurance can lead to serious consequences. Penalties vary by state, but they may include fines, license suspension, registration suspension, reinstatement fees, or vehicle impoundment.

Driving uninsured can also create bigger financial problems if you cause an accident. You may have to pay for injuries, repairs, or property damage out of pocket. A lapse in coverage or uninsured driving violation may also affect your future insurance costs, and some states may require an SR-22 filing to show proof of financial responsibility.

Check your state’s rules or talk with an insurance agent to make sure your policy keeps you compliant.

How to Keep Your Policy Compliant When Moving States

Moving to a new state can change your auto insurance requirements. It’s a good idea to review your policy before or soon after you move, since each state sets its own rules.

Here’s how to make the transition smoother:

• Update your address with your insurance company.
• Register your vehicle in your new state within the required timeframe.
• Review your new state’s coverage requirements, so you know what limits may apply.
• Ask your agent about optional coverage that may make sense for your new location.
• Avoid a coverage gap by making sure your new policy is active before canceling any existing coverage.

A Mercury agent can help you understand your new state’s requirements and adjust your policy to fit your needs.

Take the Next Step Toward Better Protection

Understanding your state’s car insurance requirements is a smart first step, but the minimum required coverage may not give you the protection you want after a serious accident. Take time to review your current policy, think about your vehicle, budget, and driving habits, and ask whether higher limits or additional coverage options make sense for you.

Mercury can help you compare your options and find auto insurance that fits your needs.

Contact us today for a fast, free quote!

Frequently Asked Questions

Take a look at a few frequently asked questions about state car insurance requirements.

Do car insurance requirements change when you move?

Yes. Auto insurance requirements vary by state, so you may need to update your coverage after you move and register your vehicle in a new state.

Is full coverage required by state law?

No. State laws usually require minimum liability coverage and, in some states, additional coverage such as PIP or uninsured motorist coverage. If you lease or finance your vehicle, your lender or leasing company may require collision and comprehensive coverage.