In every state in the U.S. from California to Rhode Island, every driver of a motor vehicle is required to carry a minimum amount of auto insurance coverage for liability for personal injury or property damage. Coverage is stated in terms of the limits for claims for personal injury presented by a single claimant, limits for multiple claimants in the “aggregate” and property damage. The following list represents these limits for all 50 states:
Alaska 50/100/25- Alabama 25/50/25
- Arkansas 25/50/25
- Arizona 15/30/10
- California 15/30/5
- Colorado 25/50/15
- Connecticut 20/40/10
- Delaware 15/30/10
- Florida 10/20/10
- Georgia 25/50/25
- Hawaii 20/40/10
- Idaho 20/50/15
- Illinois 20/40/15
- Indiana 25/50/10
- Iowa 20/40/15
- Kansas 25/50/10
- Kentucky 25/50/10
- Louisiana 15/30/25
- Maine 50/100/25
- Maryland 30/60/15
- Massachusetts 20/40/5
- Michigan 20/40/10
- Minnesota 30/60/10
- Mississippi 25/50/25
- Missouri 25/50/10
- Montana 25/50/10
- Nebraska 25/50/25
- New Hampshire 25/50/25
- New Jersey 15/30/5
- New Mexico 25/50/10
- Nevada 15/30/10
- New York 25/50/10
- North Carolina 30/60/25
- North Dakota 25/50/25
- Ohio 12.5/25/7.5
- Oklahoma 25/50/25
- Oregon 25/50/20
- Pennsylvania 15/30/5
- Rhode Island 25/50/25
- South Carolina 25/50/25
- South Dakota 25/50/25
- Tennessee 25/50/15
- Texas 30/60/25
- Utah 25/65/15
- Virginia 25/50/20
- Vermont 25/50/10
- Washington 25/50/10
- Wisconsin 50/100/55
- West Virginia 20/40/10
- Wyoming 25/100/15
So, for example, in California if you are involved in an auto accident and are at fault and you carry “minimum” coverage, your auto insurance company would be limited to payment of $15,000 if only one person was claiming to be injured, $30,000, if two or more persons were claiming personal injuries and $5,000 for property damage claims. In a more “generous” limits state like Alaska or Wisconsin, these limits would be increased to $50,000 per person claiming bodily injury, $100,000 total for two or more people with injury claims, etc.
While many people choose to just purchase the minimum, required insurance for their automobile, it is always advisable to carry as much auto insurance coverage as possible. Oftentimes, if a person has any type of significant injury such as a fracture, slipped disc or any other bodily harm requiring costs for things like surgery or extensive therapy, their claim will far exceed these minimum limits? What happens in that scenario? If the person is represented by a personal injury lawyer, that lawyer will run an “asset check” on the at fault party. If the check reveals any type of asset such as a home or other property, vehicles, liquid assets such as money in the bank, or anything with any significant value that could be attached to pay a judgment in excess of insurance, you may not be able to get released from the claim by just turning it over to insurance. A lawyer may ask that the “insured” make some, personal contribution above and beyond the auto insurance policy limit as a condition of settlement of claims.
For these reasons, it is always suggested that you carry as high of a policy limit for single and multiple claims (and property damage for that matter). Obviously, higher limits require higher premiums but, this additional coverage could mean the difference between being able to satisfy claims without coming “out of pocket” or even prevent something as drastic as a personal bankruptcy. Many auto insurance carriers also write homeowners policies, motorcycle, boat, RV and other types of policies and offer discounts for “bundling” coverage. Many of these insurance companies also offer “umbrella” or “excess” coverage which can provide additional limits (usually up to a million dollars or more) for very little additional premiums (sometimes as little as a few hundred dollars a year) if you take out more than “minimum coverage”. For example, many carriers in California offer such excess coverage if a person carries a minimum of $250,000/$500,000.
You can’t put a price on “peace of mind”. Review what your state requires at a minimum above and make sure you at least have this coverage so that you do not violate financial responsibility laws that can jeopardize your license but, try to always carry higher limits of coverage and umbrella coverage if possible. It can make a big difference if and when a claim or multiple claims are filed against you after a traffic collision!
About the Author
Steven M. Sweat is a founding partner of Glotzer & Sweat, LLP, Los Angeles based auto accident insurance claims law firm. He is a contributor and editor to this and other blogs about personal injury and insurance law issues.
