Car Insurance by State: Everything You Need to Know

Choosing car insurance can be a confusing and overwhelming process. With so many options and variables to consider, it’s important to understand the different requirements and regulations for car insurance in each state. In this article, we’ll break down the basics of car insurance by state, including minimum coverage requirements, average premiums, and frequently asked questions.

Minimum Coverage Requirements

The minimum required coverage for car insurance varies by state. This coverage is typically broken down into three categories: liability, collision, and comprehensive.

Liability Coverage

Liability coverage is required in all states except New Hampshire. This covers damages or injuries you may cause to others in an accident. The minimum required liability coverage varies by state, but is typically expressed as three numbers: bodily injury liability for each person injured, bodily injury liability for all injuries in the accident, and property damage liability. For example, in California, the minimum liability coverage is $15,000/$30,000/$5,000. This means you must carry at least $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $5,000 in property damage liability coverage.

Collision Coverage

Collision coverage is not required by law, but may be required by your lender if you are financing your car. This covers damages to your own car in an accident. If you choose to purchase collision coverage, you will have to pay a deductible before your insurance company will cover any damages.

Comprehensive Coverage

Comprehensive coverage is also not required by law, but may be required by your lender. This covers damages to your car that are not caused by an accident, such as theft, vandalism, or weather-related damage.

Average Premiums by State

The average cost of car insurance varies significantly by state. Many factors can affect the cost of your car insurance, including your age, gender, driving record, and the type of car you drive. However, some states have higher average premiums than others.

Frequently Asked Questions

What happens if I don’t have car insurance?

If you are caught driving without insurance, you could face fines, license suspension, and even impoundment of your car. In some cases, you may also be held personally responsible for any damages or injuries you cause in an accident.

Can I get car insurance if I have a bad driving record?

Yes, you can still get car insurance if you have a bad driving record. However, you may have to pay higher premiums due to the increased risk you pose to the insurance company.

What factors affect the cost of car insurance?

Many factors can affect the cost of car insurance, including your age, gender, driving record, type of car, and even your credit score. Additionally, different insurance companies may calculate premiums differently, so it’s important to shop around and compare quotes.

What is uninsured/underinsured motorist coverage?

Uninsured/underinsured motorist coverage is an optional type of coverage that protects you in case you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages or injuries. This coverage can help pay for medical expenses, lost wages, and other damages.

Do I need to purchase rental car insurance?

If you are renting a car, you may be offered additional insurance coverage from the rental car company. However, if you already have car insurance, your policy may cover rental cars as well. Additionally, some credit cards offer rental car insurance as a benefit, so it’s important to check your policy and credit card benefits before purchasing additional coverage.

By understanding the minimum coverage requirements, average premiums, and frequently asked questions for car insurance by state, you can make an informed decision when choosing car insurance. Remember to shop around and compare quotes to find the best coverage and rates for your needs.