Vehicle insurance is basically a policy purchased to provide financial coverage from costs to the insured or liability assessed to the insured that may be incurred because of traffic accidents. Policies also often provide coverage for losses attributed to mishaps, weather or fire damage or theft.
Car insurance is a derivative of marine insurance. Marine insurance was developed during the mercantile era when great ships would traverse the seas between Europe and America or Europe and Asia laden with precious cargo. The policies were sold to ship owners as a means of covering potential losses to the ship or cargo caused by storms, piracy and other misfortunes that could occur on the high seas. The policies were essentially a bet between the insurer and insured concerning whether the ship would safely transport its cargo from point A to B.
The same basic concept was applied to motor vehicles in the late 1800s, as motor vehicles began to proliferate, and the problems that come along with motor vehicles, such as wrecks and pedestrian accidents began to occur. In time, state governments began to see the necessity of having all vehicles on the road covered for the general good and most states enacted mandatory car insurance laws. The very first mandatory car insurance law went into effect in 1927 in Massachusetts, which coincidentally is the state to first adopt universal healthcare.
Today, not every state requires car insurance, but all make drivers financially responsible for any damage their vehicles may cause while they're on the road, making insurance a good idea for drivers. The only state's without mandatory insurance laws are Wisconsin and New Hampshire, but Wisconsin will require drivers to purchase some form of insurance in 2010.
As for the other 48 states and the District of Columbia, each jurisdiction has different rules concerning how much and what kind of insurance drivers are required to buy. Some states only require a minimal amount of liability insurance, while others require more substantial and expensive policies.
The following is a list of states and the mandatory minimum each requires:
- Alabama Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Alaska: Bodily Injury Liability: $50,000 per person/$100,000 per accident; Property Damage Liability: $25,000
- Arizona: Bodily Injury Liability: $15,000 per person/$30,000 per accident; Property Damage Liability: $10,000
- Arkansas: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- California: Bodily Injury Liability: $15,000 per person/$30,000 per accident; Property Damage Liability: $5,000
- Colorado: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $15,000
- Connecticut: Bodily Injury Liability $20,000 per person/$40,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $20,000 per person/ $40,000 per accident
- Delaware: Bodily Injury Liability: $15,000 per person/$30,000 per accident; Property Damage Liability: $10,000; Personal Injury Protection: $15,000 per person/$30,000 per accident
- District of Columbia Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Uninsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident
- Florida Property Damage Liability: $10,000; Personal Injury Protection: $10,000
- Georgia: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Hawaii: Bodily Injury Liability: $20,000 per person\$40,000 per accident; Property Damage Liability: $10,000; Personal Injury Protection or Managed Care:$10,000
- Idaho: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $15,000
- Illinois: Bodily Injury Liability: $20,000 per person/$40,000 per accident; Property Damage Liability: $15,000; Uninsured Motorist Bodily Injury: $20,000 per person/$40,000 per accident
- Indiana: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000
- Iowa: Bodily Injury Liability: $20,000 per person/$40,000 per accident; Property Damage Liability: $15,000
- Kansas: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident; Personal Injury Protection: $4,500 Medical/$900 Work Loss
- Kentucky: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Personal Injury Protection: $10,000
- Louisiana: Bodily Injury Liability: $10,000 per accident/$20,000 per vehicle; Property Damage Liability: $10,000
- Maine: Bodily Injury Liability: $50,000 per vehicle/$100,000 per accident; Property Damage Liability: $25,000; Uninsured/Underinsured Motorist Bodily Injury: $50,000/$100,000 Limit; Medical Payments: $1,000
- Maryland: Bodily Injury Liability: $20,000 per person/$40,000 per accident; Property Damage Liability: $15,000; Uninsured/Underinsured Motorist Bodily Injury: $20,000 per person/$40,000 per accident; Uninsured Motorist Property Damage: $15,000; Personal Injury Protection: $2,500
- Massachusetts: Bodily Injury Liability: $20,000 per person/$40,000 per accident; Property Damage Liability: $5,000 Limit; Uninsured Motorist Bodily Injury: $20,000 per person/$40,000 per accident; Personal Injury Protection: $8,000
- Michigan: Bodily Injury Liability: $20,000 per person/$40,000 per accident; Property Damage Liability: $10,000; Property Protection Insurance: $1,000,000 Personal Injury Protection
- Minnesota: Bodily Injury Liability: $30,000 per vehicle/$60,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per vehicle/$50,000 per accident; Personal Injury Protection: $40,000
- Mississippi: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Missouri: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Uninsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident
- Montana: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000
- Nebraska: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Nevada: Bodily Injury Liability: $15,000 per vehicle/$30,000 per accident; Property Damage Liability: $10,000
- New Hampshire: No minimum.
- New Jersey: Property Damage Liability: $5,000; Personal Injury Protection: $15,000
- New Mexico: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000
- New York: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident; Personal Injury Protection: $50,000
- North Carolina: $30,000 per vehicle/$60,000 per accident; and Property Damage Liability: $25,000.
- North Dakota: Bodily Injury Liability: $25,000 per person/$50,000 per accident; Property Damage Liability: Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident; No-fault insurance: $30,000
- Ohio: Bodily Injury Liability: $12,500 per person/$25,000 per accident; Property Damage Liability: $7,500
- Oklahoma: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Oregon: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000
- Pennsylvania: $15,000 per person/$30,000 per accident; Property Damage Liability: $5,000
- Rhode Island: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident
- South Carolina: South Carolina state law requires minimum Bodily Injury Liability limits of $25,000 per injured person up to a total of $50,000 per accident, and Property Damage Liability coverage with a minimum limit of $25,000. This basic coverage is often referred to as 25/50/25 coverage with 25/50 UM limits.
- South Dakota: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident
- Tennessee: $25,000 per person/$50,000 per accident; Property Damage Liability: $15,000;
- Texas: $25,000 per person/$50,000 per accident; Property Damage Liability: $25,000
- Utah: $25,000 per person/$50,000 per accident; Property Damage Liability: $15,000
- Vermont: $25,000 per person/$50,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $50,000 per person/$100,000 per accident
- Virginia: $25,000 per person/$50,000 per accident; Property Damage Liability: $20,000; Uninsured/Underinsured Motorist Bodily Injury: $25,000 per person/$50,000 per accident
- Washington: Washington state law requires minimum Bodily Injury Liability limits of $25,000 per injured person up to a total of $50,000 per accident, and Property Damage Liability coverage with a minimum limit of $10,000. This basic coverage is often referred to as 25/50/10 coverage.
- West Virginia: $20,000 per person/$40,000 per accident; Property Damage Liability: $10,000; Uninsured/Underinsured Motorist Bodily Injury: $20,000 per person/$40,000 per accident
- Wisconsin: No minimum. Will change in 2010.
States that have mandatory insurance laws enforce these measures by either fines or jail time for people who do not comply with the law. Knowing your state's insurance requirements will help you decide whether to purchase insurance and how much insurance you should purchase. |
