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State Regulations & Required Automobile Insurance

Proof of Insurance is Required

Other Types of Coverage that may be Mandatory by Different States

Learn Car Insurance Basics

Virtually all states require that drivers carry a minimum amount of car insurance.* Yet the amount and type of insurance that motorists must purchase varies considerably from state to state. Some states, like Maine and Alaska, require as much as $50,000 coverage for bodily injury of one person, $100,000 for injury to all persons in an accident and $25,000 for property damage (usually written as 50/100/25). Other states require as little as 10/20/10 such as Louisiana and Florida.

*The few states that do not require insurance have, instead, other regulations; often drivers must provide documentation that they can meet their financial obligations in case of an accident, for example. Even in these states most motorists simply carry car insurance.

Most states require proof of insurance which typically must be shown when the car is registered, following an accident or when driving on the highway. Many states have severe penalties for drivers who do not carry the necessary coverage. These penalties can range from as little as a $100 fine to the following: a suspension of a driver's license and suspension of the car registration for up to six months, up to a $5000 fine, and up to one year in jail.

Basic Automobile Liability Policies Required By Most States:

Other State Required Policies May Include:

(which is typically required in a 'no-fault' state)

Also a bank or loan company may require Comprehensive and/or Collision policies to protect the company from a loss in case of an accident in which the car is damaged or suffers a total loss.

Both the state regulations and the coverage required by a financial institution are usually stated as minimums. The policy holder can usually increase the coverage substantially.