FAQ

How Much Car Insurance Do You Really Need in 2022? State by State

You need at least $50,000 in bodily injury liability insurance coverage in most states, along with at least $25,000 in property damage liability insurance. some states also require drivers to have uninsured motorist coverage and pip or medpay.

A good rule of thumb is to supplement your state-required auto insurance with enough additional coverage to equal your net worth. This may involve increasing your liability coverage limits, as well as adding optional types of auto insurance, such as collision and comprehensive coverage.

Reading: How much insurance should i have

car insurance requirements by state

car insurance requirements by state

from January 2022

types of car insurance coverage

civil liability insurance

Liability insurance includes both bodily injury liability insurance and property damage liability insurance and pays the other driver’s expenses after accidents you cause. It may also cover your legal costs if you are sued after causing an accident.

  • do I need it? yes, liability insurance is required in most states.
  • Tip: You need enough liability insurance to cover your assets.
  • personal injury protection (pip)

    pip covers medical costs for you and your passengers after an accident, no matter who was at fault. It can also pay for other accident-related expenses, like lost wages and child care.

    • do I need it? you need pip if you live in one of the 12 states that require it.
    • Tip: Even if pip is optional in your state, it’s worth the investment as it can also cover your passengers and doesn’t have as high a deductible as most health insurance plans.
    • medical expenses (medpay)

      See also: How to Become an Insurance Adjuster in 5 Steps — AdjusterPro®

      medpay is similar to pip and covers medical costs for you and your passengers after an accident. medpay can be used for a claim no matter who was at fault in an accident, but it doesn’t cover lost wages and typically has lower policy limits than pip.

      • do I need it? yes, if you live in maine or new hampshire, where medpay is required.
      • Tip: Even if it’s not required, medpay is still a worthwhile investment, as it’s relatively inexpensive and can cover pip and health insurance deductibles. the minimum amount of medpay coverage available is sufficient for most people along with their health insurance.
      • uninsured/underinsured (um/uim) driver

        Underinsured or uninsured motorist coverage can help if you’re hit by an uninsured driver, hit-and-run, or collided with someone who doesn’t have enough coverage to pay for all the damage you caused.

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        • do I need it? Twenty states and the District of Columbia require uninsured motorist coverage, and 14 states require underinsured motorist insurance.
        • Tip: Since it’s fairly affordable and can really come in handy, it’s worth adding uninsured/underinsured motorist coverage to your policy, even if it’s not required by law in your state.
        • collision insurance

          Collision insurance covers damage to your vehicle after an accident. Collision insurance also includes a deductible, which is the amount you must pay out of pocket before insurance pays the rest of the bill. you can choose your deductible, but lower ones come with higher premiums.

          • do I need it? If your car is leased or financed, you may need to have collision insurance.
          • Tip: Even if it’s not required, collision insurance is a good investment for people who can’t afford to replace or repair their vehicles out of pocket after an accident. Collision insurance is also recommended for those who drive frequently and in high-traffic areas, and for people who prefer not to spend all of their savings on car repairs or a replacement car after an accident.
          • all risk insurance

            If your car is damaged in something other than a collision, you’ll need comprehensive coverage for a claim. this includes damage caused by vandalism, theft, weather, and wildlife. Like collision insurance, you’ll need to choose a deductible.

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