Minimum car insurance, often called liability-only coverage, is the bare minimum level of insurance required by your state's law to legally drive. It does not cover your own vehicle. Essentially, it provides financial protection for damages and injuries you cause to other people in an at-fault accident. It typically includes two main components: Bodily Injury Liability (BI) per person and per accident, and Property Damage Liability (PD).
The specific minimum amounts you must carry vary significantly by state. For example, California's minimum is 15/30/5, meaning $15,000 for bodily injury per person, $30,000 total per accident, and $5,000 for property damage. These amounts are often considered low and may not be sufficient to cover the full costs of a serious accident, potentially leaving you personally responsible for any excess.
| State | Bodily Injury Liability (Per Person) | Bodily Injury Liability (Per Accident) | Property Damage Liability (Per Accident) |
|---|
| California | $15,000 | $30,000 | $5,000 |
| Texas | $30,000 | $60,000 | $25,000 |
| New York | $25,000 | $50,000 | $10,000 |
| Florida* | Not Required | Not Required | $10,000 |
| Pennsylvania | $15,000 | $30,000 | $5,000 |
*Florida is a "no-fault" state, requiring Personal Injury Protection (PIP) instead of BI liability.
It is crucial to understand that this basic coverage does not pay for your own medical bills or repair your car after an accident, regardless of who is at fault. For that, you would need additional, optional coverages like collision (for your car in a crash) and comprehensive (for theft, vandalism, weather). While meeting the legal minimum keeps you compliant, it's a high-risk financial strategy. Most financial advisors recommend carrying liability limits well above your state's minimum to protect your assets.
