What Are the Minimum Car Insurance Requirements?
State minimum insurance requirements are the car insurance requirements for each state, by law for its residents. Driving without insurance is illegal in almost every state, so if you own a car, you need to make sure you have met the minimum state insurance requirements to drive legally.
These laws are in place to compel drivers to be financially responsible. Being financially responsible involves compensating anyone you injure as a result of your driving and making you financially responsible for property damage.
Minimum car insurance requirements vary from state to state. This means the car insurance coverages and limits that work for a friend or family member living elsewhere might not be right for you.
What are my state’s minimum requirements?
NerdWallet has assembled minimum requirements by state so you can quickly and easily find how much car insurance you need to drive legally. These requirements may change occasionally; to ensure you’ve the latest information, visit your state insurance commissioner's website or consult your insurance agent.
William Penn Insurance is a licensed independent agency serving Louisiana, Maryland and Pennsylvania residents. Here are the state minimum requirements for these residents:
Louisiana
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Maryland
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $15,000 property damage liability per accident
- $30,000 uninsured/underinsured motorist coverage per person
- $60,000 uninsured/underinsured motorist coverage per accident
- $15,000 uninsured/underinsured property damage coverage per accident
Pennsylvania
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $5,000 medical benefits
What do these required coverages mean?
Liability insurance: Louisiana, Maryland and Pennsylvania all require at least a minimum amount of liability insurance. This coverage helps pay for any damage you cause to another driver, their passengers or any property, such as their car.
There are three components to car insurance liability coverage:
- Bodily injury coverage per person
- Bodily injury coverage per accident
- Property damage coverage per accident
Take Pennsylvania for example: let’s say you collide with a van carrying several passengers. Your liability coverage would pay up to $15,000 per person for bodily injuries caused to people in the van but no more than $30,000 in total bodily injury costs for the incident. You’d also be covered for up to $5,000 in property damage.
Only carrying $5,000 in property damage coverage is extremely low. Property damage claims can be much more expensive, and you’d be on the hook for the difference!
Most experts recommend carrying more than the minimum liability insurance coverage. If you were at fault in a bad accident, you could easily be on the hook for more than $30,000 in medical bills alone, not to mention potential damages in a lawsuit. At William Penn Insurance, we typically recommend liability coverage of $100K bodily injury liability per person/$300K bodily injury liability per accident/$100K property damage liability per accident to better protect you and others. You may also consider purchasing an umbrella policy for more protection if you have a high net worth and a lot of assets.
Uninsured/Underinsured Motorist Coverage: Uninsured and underinsured motorist coverages are required in almost half of states, including Maryland. These kick in to help with the cost of injuries to you or your passengers if you’re ever struck by a driver who doesn’t have enough, or any car insurance. Maryland also requires uninsured/underinsured motorist property damage coverage to cover property damage in these cases.
Medical Payments Coverage: Medical payments coverage goes toward your medical expenses if you’re injured in an accident. It doesn’t cover additional benefits, such as lost wages. Even though medical payments coverage usually has a low limit ($5,000 required in Pennsylvania), it may be helpful for those with high health insurance deductibles.
I have the minimum state requirements. Is that enough to keep me protected?
This is a good question. It all depends on how much personal risk you are willing to take. Insurance is meant to protect your current and future assets. If you do not have enough car insurance to cover damages caused to people or property when you have an accident, then you might get sued for the additional costs. Even if you do not have the cash in the bank, or have assets that can pay for the damages, your future earnings could be garnished.
Louisiana, Maryland and Pennsylvania do not require collision and comprehensive coverage. Yet, these are two popular add-ons many drivers depend on to help with car thefts, animal collisions and more.
In fact, if you lease your car or have borrowed money to buy it, your lender probably will require you to buy collision and comprehensive coverage.
There are many additional optional coverages available, such as rental reimbursement, which pays for a rental car if your car is in the shop after a covered claim, roadside assistance or towing insurance and full-glass coverage, which pays to repair or replace broken window glass, without a deductible.
At William Penn Insurance, we’ll help you select the right coverages to keep you protected without breaking the bank. Need more information on auto insurance or want to request a quote today? Call William Penn Insurance at 717-900-8658 or email WilliamPennInsurance@gmail.com. William Penn Insurance is a licensed independent agency serving drivers in Pennsylvania, Louisiana and Maryland.