Legal Minimum Insurance Coverage
Each state retains the right to determine the limits of liability insurance for motorists insuring their vehicles within its jurisdiction. As a result, legally required liability limits vary substantially across the United States.
Liability limits are frequently cited in groups of three numbers. The first number represents the bodily injury coverage per claimant; the second number represents the bodily injury coverage for any claim. The third number represents the amount of property damage liability coverage.
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Terms
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Bodily injury coverage provides liability insurance for the insured person for personal injury claims by third parties. If an insured person purchases a 25/50 personal injury liability policy, the insurance carrier may pay up to $25,000 to resolve a personal injury claim against the insured. The carrier will pay a maximum of $50,000 to settle all personal injury claims stemming from one accident, regardless of the number of claimants.
Property damage liability insurance covers claims from third parties alleging that the insured negligently damaged property, such as an automobile, mailbox or landscaping.
States with Lowest Bodily Injury Liability Requirements
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According to CarInsuranceRates.com, 22 states have adopted $25,000 per-claimant bodily injury liability policies as the required minimum insurance, as of 2011. However, some states, such as Mississippi, Louisiana and Oklahoma, have adopted even lower minimum liability limits, requiring only 10/20 policies.
Ohio's minimums are 12.5/25, while Arizona, California, Delaware, Georgia, New Jersey, Nevada, Pennsylvania and South Carolina all require15/30 bodily injury liability coverage. Florida and New Hampshire do not require bodily injury coverage.
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States with Highest Bodily Injury Liability Requirements
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CarInsuranceRates.com also lists the states with the highest minimum limits for bodily injury liability coverage. Alaska and Maine both require insured residents to purchase coverage of at least 50/100, as of 2011. North Carolina requires its resident motorists to purchase bodily injury liability coverage of at least 30/60. Minnesota has also increased its minimum limits to 30/60, while Wisconsin increased its minimum limits to 50/100 in 2010.
Property Damage Liability Requirements
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States have adopted minimum limits for property damage liability that are generally lower than the mandatory bodily injury limits, ranging from $5,000 to $25,000. According to Insure.com, the states requiring $25,000 in property damage coverage include Alabama, Alaska, Arkansas, Georgia, Louisiana, Maine, Mississippi, Nebraska, North Carolina, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota and Texas.
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References
- Insure.com; Minimum Levels of Car Insurance You are Required to Buy; Sept. 20, 2010
- Carinsurancerates.com: State by State Insurability Requirements
- Minnesota Department of Commerce: What You Need to Know
- "Milwaukee Journal Sentinel"; Are You a Wisconsin Driver? You'll Need Insurance by June; Paul Gores; July 19, 2009
- Photo Credit Thomas Northcut/Photodisc/Getty Images
