State Minimum Coverage Quick Reference Card

These numbers represent your liability coverage limits in thousands of dollars: $25,000 bodily injury per person / $50,000 bodily injury per accident / $25,000 property damage per accident. So '25/50/25' means your insurer will pay up to $25K for injuries to one person, $50K total for all injuries in one accident, and $25K for property damage you cause. These are the minimum amounts — financial experts recommend at least 100/300/100 to adequately protect your assets.

In tort (at-fault) states, the driver who caused the accident is responsible for paying the other party's damages. You can sue the at-fault driver for medical bills, lost wages, and pain and suffering. In no-fault states, each driver's own insurance (through Personal Injury Protection / PIP) pays their medical bills regardless of who caused the accident. No-fault states restrict your ability to sue except in cases of serious injury. There are 12 no-fault states plus 3 'choice' states where you can opt for either system.

Almost never. State minimums were set decades ago and haven't kept pace with the actual cost of accidents. The average bodily injury claim now exceeds $20,000, and a serious accident with hospitalization can easily reach $100,000–$500,000. If your liability limits are too low, you're personally responsible for the difference — which can mean wage garnishment, asset seizure, or bankruptcy. Most insurance experts recommend at least 100/300/100 for liability limits.

PIP (Personal Injury Protection) is a type of coverage that pays for your own medical expenses, lost wages, and sometimes funeral costs after an accident, regardless of who was at fault. PIP is required in all no-fault states. Coverage limits and specifics vary by state — for example, Florida requires $10,000 in PIP, while Michigan historically required unlimited PIP (now offers tiered options after 2019 reform). Some tort states also offer optional PIP.

Your auto insurance policy generally follows you across state lines. If you're visiting a state with higher minimum requirements than your home state, your policy will typically automatically extend to meet the visited state's minimums — but only up to the limits you've purchased. If you're moving to a new state permanently, you must update your policy to meet the new state's requirements within 30–90 days (varies by state). Failing to do so can result in a lapse in legal coverage.