States With the Lowest Car Insurance Requirements

Which States Ask the Least of Drivers in 2026?

Not all states set the same floor for auto insurance. Some require drivers to carry $100,000 or more in bodily injury coverage; others let drivers legally operate with as little as $10,000. The variation is real, significant, and directly affects what you pay.

This ranking identifies the 10 states with the lowest mandatory auto insurance minimums in 2026 — measured by the total financial exposure required, not just one number. It also flags the trade-off: low minimums protect your wallet at purchase but leave you exposed when a serious accident happens.

Note: This covers minimum legal requirements only. Whether those minimums are sufficient coverage is a separate question.

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How We Ranked: The Methodology

Minimum auto insurance requirements come in three numbers:

• Bodily injury per person — maximum paid for one injured person
• Bodily injury per accident — maximum paid to all injured parties combined
• Property damage per accident — maximum paid for vehicle/property damage

To create a single comparable figure, we summed the three required minimums (per-person BI + per-accident BI + PD) as a proxy for total required coverage. Lower combined totals rank higher in this list.

States that permit alternative financial responsibility (cash deposits, self-insurance, or surety bonds in lieu of a policy) are noted — their requirements remain the same even if the mechanism differs.

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The 10 States With the Lowest Auto Insurance Minimums in 2026

#1 — Florida: $0 / $0 / $10,000, plus $10,000 PIP

Florida asks most drivers for $20,000 of cover in total, and none of it is bodily injury liability. Florida is a no-fault state. Instead of bodily injury liability, it requires:

• $10,000 Personal Injury Protection (PIP)
• $10,000 Property Damage Liability (PDL)

Bodily injury liability is not required for most Florida drivers (only those with prior at-fault accidents or DUI convictions need to carry it). This makes Florida's effective minimum among the lowest in the US — but also means injured Florida drivers are frequently left with inadequate compensation after serious crashes.

Florida has one of the highest rates of uninsured drivers in the country — consistently above 20% — which is directly related to these minimal requirements.

#2 — New Jersey (Basic Policy): $0 / $0 / $5,000

New Jersey earns this place on a technicality that no other state offers, and only since 2026 did the technicality become the whole reason it qualifies. The state runs two legal tiers. Its Standard policy rose to 35/70/25 for policies issued or renewed on or after 1 January 2026, which puts it among the higher minimums in the country rather than the lower ones.

Its Basic policy, however, was expressly excluded from both phases of that increase. It still requires only $5,000 in property damage and no bodily injury liability at all — the lowest legal floor of any state that mandates insurance. So New Jersey now holds a position at both ends of this list depending on which policy a driver buys, and the gap between its two tiers is roughly seven times wider than it was in 2022.

New Jersey is also a no-fault state, so PIP coverage is required in addition to these liability minimums.

#3 — Pennsylvania: $15,000 / $30,000 / $5,000

Pennsylvania matches New Jersey's Basic policy with a $5,000 property damage minimum, and unlike New Jersey it applies that floor to every driver rather than to one optional tier. Pennsylvania is also a choice no-fault state — drivers elect either full tort or limited tort when they buy insurance. Limited tort drivers give up some lawsuit rights in exchange for lower premiums.

#4 — Ohio: $25,000 / $50,000 / $25,000

Ohio sits at the common $25/50/25 floor that many states share. Ohio raised its minimums in 2013 and hasn't increased them since. For drivers who need workers' comp, Ohio operates a state-monopoly fund (BWC), but auto insurance comes from the private market.

#4 (Tied) — Indiana: $25,000 / $50,000 / $25,000

Indiana matches Ohio at the $25/50/25 level. Indiana is one of the states without a statewide general contractor license requirement — its regulatory philosophy extends to auto insurance, where it keeps minimums at a moderate level.

#4 (Tied) — Georgia: $25,000 / $50,000 / $25,000

Georgia maintains $25/50/25 minimums. Georgia's auto insurance market is competitive, which helps keep actual premium costs moderate despite Atlanta's high-traffic density.

#7 — Michigan: $50,000 / $100,000 / $10,000

Michigan is an unusual case. In 2020, Michigan overhauled its no-fault system — one of the most significant state auto insurance law changes in decades. Drivers now choose their PIP coverage level:

The mandatory bodily injury minimum is $50,000/$100,000 — higher than Ohio or Indiana — but the new PIP flexibility has significantly reduced premiums for many Michigan drivers compared to the pre-2020 system.

#8 — Mississippi: $25,000 / $50,000 / $25,000 (lowest enforcement)

Mississippi matches many states at $25/50/25. What makes it notable is its enforcement environment and cost: Mississippi consistently ranks as one of the cheapest states to buy auto insurance, with average full coverage premiums well below national averages. The combination of low minimums and low costs puts it among the most accessible auto insurance environments.

#9 — Iowa: $20,000 / $40,000 / $15,000

Iowa's $20/40/15 minimums are slightly below the common $25/50/25 standard. Iowa also has a shorter SR-22 requirement (2 years) than most states — consistent with a state-level preference for lower mandates.

#10 — North Dakota: $25,000 / $50,000 / $25,000 + shortest SR-22

North Dakota sits at the common floor for liability minimums, but earns a spot on this list for having the shortest SR-22 requirement in the country (1 year). For drivers who have had violations, North Dakota's recovery timeline from elevated premiums is faster than any other state — a meaningful part of the total cost of driving there.

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States Near the Top With Notable Minimums

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States With the Highest Minimums (For Contrast)

Alaska and Maine set the highest standard liability minimums at $50,000/$100,000. The reasoning is straightforward: remote driving environments with long emergency response times and expensive accident scenarios justify higher minimums.

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The Trade-Off: Low Minimums and What They Mean

Low required minimums don't protect drivers — they protect drivers from fines. The two are different:

What low minimums mean for you:

• Lower mandatory premium costs at the legal minimum
• Higher personal liability exposure if you cause a serious accident
• If damages exceed your coverage, you're personally responsible for the difference

The real numbers: A single serious injury accident routinely produces $200,000–$500,000 in medical bills and lost wages. A state minimum of $25,000 per person means you're personally on the hook for the remaining $175,000–$475,000.

Uninsured rates track minimums: States with the lowest minimums consistently have higher rates of uninsured drivers — because even the minimum is unaffordable for some. Florida's 20%+ uninsured rate reflects this dynamic directly.

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Frequently Asked Questions

Is it better to live in a state with low auto insurance minimums?

For premium cost, yes — if you only buy the minimum. But "better" depends on what you're optimizing for. Low minimums mean lower mandatory costs, but also less protection if you're in a serious accident. Most financial advisors recommend carrying 100/300/100 regardless of state minimums.

Do no-fault states always have lower minimums?

Not always, but no-fault states structure their minimums differently. Instead of paying out to the other driver, your own PIP covers your injuries. Florida's no-fault structure produces the lowest effective minimum because bodily injury liability isn't even required for most drivers.

Can I move to a low-minimum state to pay less for insurance?

Some people do. But premium costs are driven primarily by your driving history, the vehicle, and local accident/theft rates — not just minimums. Moving from New York to Ohio doesn't automatically mean cheaper insurance if you're taking your driving record with you.

Why doesn't New Hampshire require auto insurance at all?

New Hampshire is the only state without a mandatory auto insurance requirement. Drivers must demonstrate financial responsibility if they're in an at-fault accident — but aren't required to buy a policy in advance. In practice, most New Hampshire drivers carry insurance voluntarily because the alternative exposure (personal liability for all accident costs) is severe.

How often do states update their minimum requirements?

Infrequently — most states haven't updated minimums in a decade or more. The $25/50/25 standard was set in the 1990s and early 2000s in many states. A handful of states (California, Virginia) have recently raised minimums, and more are expected to follow as medical and vehicle repair costs have outpaced the original minimums.

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Key Takeaways

• Florida has the lowest effective minimum — no-fault state with bodily injury liability optional for most drivers
• New Jersey's Basic policy and Pennsylvania share the lowest property damage minimum at $5,000 — but New Jersey's Standard policy left that group on 1 January 2026
• Iowa sits below the standard floor at $20/40/15 vs. the common $25/50/25
• North Dakota's SR-22 rule (1 year) makes post-violation cost recovery faster than any other state
• Low minimums ≠ low risk — drivers in low-minimum states carry more personal liability exposure for serious accidents
• Alaska and Maine set the high end at $50,000/$100,000 for standard minimums
• State minimums are a legal floor, not a recommendation — most drivers benefit from carrying significantly more

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Important Disclaimer

This guide provides general information about minimum auto insurance requirements based on publicly available state laws. Requirements change and state law is subject to legislative revision. This is not legal advice or a recommendation to purchase only minimum coverage.

Always verify current requirements with your state's DMV or department of insurance.

Last verified: April 2026

Sources: Insurance Information Institute (III), individual state Departments of Motor Vehicles, National Association of Insurance Commissioners (NAIC) state insurance data, Florida DHSMV, Ohio BMV