How Much State Minimum Car Insurance Costs
The average cost for auto insurance policies with state minimum coverage limits is $752 per year, although it varies by state. In comparison, full coverage insurance with liability limits of $300,000 for bodily injury per accident with a maximum of $100,000 for each individual and $100,000 for property damage has an average annual rate of $1,352.
There are several factors to consider to determine how much car insurance you need, including the kind of car you have and how much coverage you can afford. While they tend to be more expensive than liability-only policies, comparing quotes from different providers can help you find cheap full coverage car insurance.
Cost of Minimum Coverage Car Insurance vs. Full Coverage in Each State
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What If The Insurance Company Totals My Car
If the cost to repair your car is close to its current value, the company will probably decide to total it. This means the company will pay you to replace your car rather than fix it.
If the company totals your car, it will pay your cars value minus depreciation. Depreciation is a decrease in value because of wear and tear or age. For instance, if your car is 10 years old, the company will pay you the value of a 10-year-old used car. It wont pay to replace your car with a new car thats the same make and model as your totaled car.
Be prepared to negotiate with the company to get what you think is a fair deal. A company might raise its offer if you can show that your car would sell for a higher price. Get written price quotes for a similar car from used car dealers. You can also look in the classified section of your local newspaper for used car prices.
If you still owe money on your car, the amount the company will pay you if it totals your car might not be enough to pay off your loan. This will happen if the market value of your car is less than what you owe. Auto dealers and lenders usually offer guaranteed auto protection, or gap, insurance for this.
Minimum Coverage Amounts Vary By State
The minimum coverage amount varies from state to state, and may not apply to all vehicles. For example, Florida does not require motorcycle insurance coverage but does require auto insurance coverage for all vehicles with four wheels.
While you must meet the minimum insurance requirements in order to legally operate your vehicle, its usually a good idea to purchase more than the minimum amount of required coverage. More robust insurance coverage can save you a lot of money in the event of an accident or if your car is damaged.
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What Car Insurance Is Required In Massachusetts
In Massachusetts, its illegal to drive without insurance. Drivers in Massachusetts are required to have the following car insurance coverage: bodily injury coverage, property damage coverage, uninsured motorist coverage, and personal injury protection.
This chart shows the minimum auto insurance drivers are required to have in Massachusetts for these coverages.1
States That Dont Require Car Insurance
The only two states that dont require car insurance are New Hampshire and Virginia. Drivers in Virginia can pay the state $500 a year in lieu of car insurance, but that cost does not provide coverage in the event of an accident. While car insurance is not mandatory in either state, residents are still liable for bodily injury or property damage they cause.
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Does New Hampshire Have Minimum Coverage Requirements
If you do decide to purchase car insurance coverage in New Hampshire, youll need to meet certain minimum coverage requirements. These include:
- $25,000 for bodily injury or death of one person.
- $50,000 for bodily injury or death of two or more people.
- $25,000 for property damage.
- $1,000 for medical payments coverage.
- Uninsured motorists coverage.
Because the potential costs of an accident are so high, it usually makes sense to purchase insurance coverage rather than run the risk of getting into an accident while uninsured.
While car insurance may seem like an unnecessary monthly expense, its much easier to afford a robust car insurance policy than it is to cover the potential cost of even a minor accident.
Minimum Car Insurance Requirements By State
From Alaska to California and Indiana to New York, each state has minimum car insurance requirements. Find your state’s guidelines so you’re protected.
New Hampshire and Virginia are the only two states that dont require car insurance. That said, there is no one country-wide rule when it comes to how much car insurance you have to have. Each state has a different minimum amount of car insurance that drivers must obtain in order to legally drive on public roads. In other words, how much auto insurance coverage you legally need depends on the state you live in.
Some states only require liability insurance, which covers bodily injury and property damage you do to someone else. Other states might require extra medical coverage or whats often known as personal injury protection , which covers health care bills you or your passengers incur. And some states might require uninsured and/or underinsured motorist insurance, but then in other states this type of coverage could be optional.
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Collision and comprehensive coverage are always optional no matter what state you live in, but they are still important protection nonetheless. If youre confused, there’s good news: You really only have to worry about the requirements where you live, so you can jump to your home state and make sure your coverage fits the mandatory minimums.
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What Is The Minimum Required Car Insurance In Most States
Most states require liability coverage for bodily injury and property damage, which covers the other driver if you’re at fault in a wreck. The exact amount of required liability coverage varies by state, and some states require additional coverage, such as uninsured motorist or personal injury protection.
Is It Illegal To Not Have Car Insurance In Michigan
Driving without insurance is considered a misdemeanor in Michigan. If convicted, you may have to pay a driver responsibility fee for two consecutive years, face up to one year in jail and surrender your driver’s license for up to 30 days. You’ll have to pay a $125 service fee to reinstate your license.
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Deductibles And Dollar Limits
You must meet a deductible for some types of claims.
You must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims. A deductible is the amount of a claim that you must pay yourself. For instance, if you have a $1,500 collision claim and your policy has a $500 collision deductible, the insurance company will deduct $500 from your claim amount and pay you $1,000. You dont have to pay a deductible for claims against another drivers insurance company.
Learn more: What to know about deductibles
Some coverages pay only up to the policys dollar limits.
Liability, personal injury protection, uninsured/underinsured motorist, towing and labor, and rental coverages have dollar limits. This is the most the company will pay, even if the cost is higher. If you dont have enough coverage, youll have to pay the difference yourself. Collision and comprehensive coverages dont have dollar limits.
The first page of your policy is the declaration page. It has a summary of your policy, including your coverages, dollar limits, and deductibles.
Explore Different Coverage Options
The type of coverage you have, as well as your coverage limits, will affect your premiums. At the least, its better to opt for state minimum coverage instead of foregoing insurance all together. While the state minimum will only be a liability policy, its better than nothing. But if you do have a little wiggle room in your budget, you might be surprised to find that you can secure more comprehensive coverage that fits your budget if you shop around.
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How To Get Car Insurance In A New State
If youre moving to a new state, youll need to get car insurance that complies with the requirements of that state. Heres how to do it:1. Find out what the car insurance requirements are in your new state. You can do this by contacting your states department of motor vehicles or insurance commission.2. Shop around for car insurance in your new state. Be sure to compare rates and coverage options from different insurers.3. Choose the policy that best meets your needs and budget.4. Once you have a policy in place, be sure to keep your insurer updated on your address and contact information.
States Where You Might Not Have To Get Car Insurance
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While the vast majority of drivers must comply with state minimum car insurance requirements, most states allow little-known alternatives to insurance, and one state requires neither insurance nor an alternative.
These alternatives are a form of self insurance, but before you start driving insurance-free, read the rules that apply where you live.
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Insurance Requirements Of Autonomous Vehicles
When it comes to insuring an autonomous vehicle, most of the states that are allowing full deployment also have insurance requirements. Nine states only have the stipulation that the vehicle must be insured by vehicle liability that meets the state minimums, while Oklahoma requires $1 million and California and Tennessee require $5 million in insurance coverages on autonomous vehicles. Georgia, New Hampshire, and West Virginia all require an autonomous vehicle to be insured with the minimum vehicle liability allowed by state law, even if the driver isn’t present. Nevada requires a company or person seeking to test an autonomous vehicle to have $5 million in liability insurance and requires a company to have $1.5 million in insurance coverage.
Of the states that only allow commercial deployment, Alabama and Louisiana have a $2 million insurance coverage requirement. Arkansas requires the “autonomous vehicle program” to comply with “the minimum liability insurance coverage requirements,” a law that came on the books for that state in January 2021, but no further stipulations are required. Colorado is the only outlier among states that allow full deployment of autonomous vehicles. It does not require liability insurance, nor does it require a licensed operator to be behind the wheel at any time.
Are There Any Additional Laws That Exist Regarding Auto Insurance
Each of the 50 states has different requirements concerning car insurance and the minimum requirements necessary to meet its laws.
Every state has fiscal responsibility laws that state that you must be able to pay for any liabilities that you may cause an accident.
Furthermore, most states require that each driver has bodily injury liability insurance. In various states, licensed drivers may not register a vehicle without first showing proof that they have liability insurance.
Other states, however, request that its residents need only proof of insurance in the event of an accident or traffic violation.
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Which States Do Not Require Car Insurance
States that do not require car insurance typically have low car theft rates, and minimal traffic laws. These states also tend to have a high population of motorists who are used to driving without insurance. Some states that do not require insurance may allow exceptions for certain types of vehicles, such as tourist vehicles.
Auto Insurance Data Methodology
The auto insurance rates published in this guide are based on the results of research completed by Way.coms data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only your own quotes will differ. Given this, its important to go through our insurance steps form to find how much you can save with way.com
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Do Drivers In New Hampshire And Virginia Usually Buy Coverage
Its interesting to note that drivers in both of these states typically buy liability insurance even though it isnt technically required. Most drivers find that paying premiums is an affordable way to prevent getting sued for damages or injuries caused by a car accident.
Its even more interesting to look at some statistics to see that drivers in these two states are even more likely to buy coverage than the national average.
The U.S. average for uninsured motorists is almost 13 percent. In New Hampshire, only about nine percent of drivers lack coverage. In Virginia, about 10 percent of drivers dont buy coverage. Obviously, the lack of rules that force all drivers to purchase liability policies doesnt keep prudent vehicle owners from making sure that they cover their cars.
Car Insurance Requirements By State
The table below indicates the minimum amount of liability required by each state. Please note, some states may also require additional coverage, like uninsured motorist or personal injury protection .
* These states do not legally require insurance however, both have minimum levels of financial responsibility that you must meet in order to drive a vehicle without coverage. If you choose to purchase insurance, the amounts shown are the state required minimums.
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Why Isnt Car Insurance Required In New Hampshire
Car insurance legislation is a state government matter, so every state has its own automobile insurance requirements.
It just so happens that New Hampshire has the fewest car insurance laws. Thereâs no law on their books stating that drivers must carry car insurance.
Even so, driving without car insurance still poses big financial risks despite no legal ones. An at-fault car accident can be enough to bankrupt you. Then when you go looking for car insurance, youâll have to pay much higher auto insurance policy premiums to auto insurers. Itâs best to think twice about it before hitting the road.
Full Coverage Vs Liability
There are two types of car insurance coverage: full coverage and liability. Full coverage is more comprehensive and includes things like collision and comprehensive insurance, while liability only covers damage to other vehicles or property in the event of an accident.If youre moving to a new state, your current car insurance policy may not cover you anymore. Thats because each state has different minimum requirements for car insurance, so youll need to get a new policy that meets those requirements. You can usually do this through your current insurer or by shopping around for a new one.When deciding how much coverage to get, its important to consider your needs and budget. If you have a newer car or live in an area with a lot of traffic, you may want to consider getting full coverage. On the other hand, if you have an older car or live in a rural area, liability might be all you need. Ultimately, its up to you to decide what level of risk youre comfortable with.
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What If The Other Drivers Insurance Company Refuses To Pay My Claim
If you believe the other driver was at fault, but his or her insurance company wont pay your claim, file a claim with your own insurance company. You must have collision coverage to do this. Your insurance company will probably try to collect from the other drivers company.
Be aware that if you file a claim with your own company, youll have to pay a deductible.
Here Are The Average Liability Coverage Insurance Requirements:
- Bodily injury liability insurance per person – This is how much liability coverage per person you have for injuries of the other driver that you caused. This includes all aspects of medical transport and treatment. The average minimum coverage amount is $25,000.
- Bodily injury per accident – This is how much coverage you have for injuries of everyone else in the other car that you caused. Again, medical treatment and expenses are included. The average minimum coverage amount is $50,000.
- Property damage – This property damage liability insurance is how much coverage you have for the damage you caused to another car and other property in the accident. Repair and replacement costs are covered. The average minimum coverage amount is $10,000.
Keep in mind that minimum coverage amounts to legally drive on public roads vary from state to state. Minimum car insurance requirements can be what youâve just seen or even double it. Of course, just the minimum amount of coverage isnât enough to fully cover you in a real-life scenario. So, it is recommended that you carry auto insurance coverage well beyond the minimum insurance requirements.
Each state has a different minimum standard for liability insurance, and some also mandate the purchase of additional insurance, including uninsured motorist coverage, underinsured motorist coverage, or personal injury protection. The most common types of insurance policies that states require are collision coverage and comprehensive coverage.
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