Basic car insurance coverage, often called a "standard policy," is the minimum set of protections required by your state's law to legally drive. It primarily consists of liability coverage, which pays for injuries and property damage you cause to others in an at-fault accident. It does not cover your own vehicle's repairs or your medical bills. For that, you need additional, optional coverages like collision and comprehensive.
The core of any basic policy is split into two main liability types:
- Bodily Injury Liability (BI): This covers medical expenses, lost wages, and legal fees for other people injured in an accident you cause. Limits are typically shown as two numbers (e.g., 25/50), meaning $25,000 per person and up to $50,000 per accident.
- Property Damage Liability (PD): This pays for damage you cause to someone else's property, such as their car, fence, or mailbox. A common minimum limit is $25,000.
Most states are "at-fault" states, meaning the driver who causes the accident is financially responsible. To ensure drivers can cover these costs, states mandate minimum liability limits. However, these state minimums are often too low to provide real financial protection in a serious accident.
| State | Minimum Bodily Injury Liability (per person/per accident) | Minimum Property Damage Liability | Uninsured Motorist Coverage Required? |
|---|
| California | $15,000 / $30,000 | $5,000 | Yes |
| Texas | $30,000 / $60,000 | $25,000 | Yes |
| Florida* | Not Required | $10,000 | Not Required |
| New York | $25,000 / $50,000 | $10,000 | Yes |
| Illinois | $25,000 / $50,000 | $20,000 | Yes |
| Arizona | $25,000 / $50,000 | $15,000 | Not Required |
*Note: Florida is a "no-fault" state, requiring Personal Injury Protection (PIP) instead of BI liability.
Beyond the bare minimum, you'll often see Uninsured/Underinsured Motorist (UM/UIM) coverage required in many states. This protects you if you're hit by a driver with no insurance or insufficient coverage. Remember, basic coverage is cheap but risky. Experts recommend carrying liability limits well above your state's minimum to protect your assets.
