Is Auto Insurance Required?

Auto insurance is required by law in almost every U.S. state because of the risk you pose to other drivers and pedestrians. Most states have minimum liability coverage requirements that every driver must carry in order to legally operate a motor vehicle.

Liability coverage is the portion of your automobile policy that protects you in the event you cause damage to another driver or passenger; vehicle; or personal property. Liability coverage pays to cover the financial burden of the damages up to the limitations of your policy.

Minimum liability requirements vary by state. In California, for example, all drivers must carry a minimum of:

$15,000 worth of coverage for bodily injuries sustained by any one person in an at-fault accident
$30,000 worth of coverage for bodily injuries sustained by all persons in any one accident
$5,000 worth of coverage for property damage caused in an at-fault accident

You may see this number expressed as 15/30/5. (Remember, minimum requirements vary depending on the state you live in, so check the auto insurance requirements in your state for specifics on your requirements.)

While your state department of motor vehicles will require minimum liability coverages, you can (and usually should) purchase more than the minimum requirements. If you are found to be at-fault in an accident where the damages exceed your limits of liability, you become financially responsible for the difference.

Other types of coverage that are recommended in every state, but usually not required include:

Comprehensive coverage
Collision insurance
Uninsured motorist’s coverage
Underinsured motorists coverage
Medical payments coverage

Your state department of motor vehicles will ask for proof of auto insurance in order to approve your vehicle registration and most DMVs will fine drivers who let their policies lapse.

See More Auto Insurance FAQs

Have other questions about auto insurance or how to get started? Want to speak with one of our licensed agents? Give us a call at 1-877-506-9466 and let us get started on your quote today!