Basic car insurance, often referred to as liability insurance, is the minimum level of coverage required by state law to legally drive a car. It does not cover damage to your own vehicle. Instead, it financially protects you if you are found at fault in an accident by paying for the other party's bodily injuries and property damage. The core components are typically expressed as three numbers (e.g., 25/50/25), representing Bodily Injury Liability per person, Bodily Injury Liability per accident, and Property Damage Liability per accident.
While liability is the legal foundation, some states are "no-fault" and require Personal Injury Protection (PIP), which covers medical expenses for you and your passengers regardless of who caused the accident. Another common add-on to basic policies is Uninsured/Underinsured Motorist (UM/UIM) coverage, which protects you if you're hit by a driver with little or no insurance.
It's critical to know that basic insurance is not full coverage. If you cause an accident, your own car's repair costs come out of your pocket. This makes basic insurance a cost-effective choice primarily for older, low-value vehicles.
| State | Minimum Bodily Injury Liability (Per Person/Per Accident) | Minimum Property Damage Liability | Required PIP? | Required UM/UIM? |
|---|
| California | $15,000 / $30,000 | $5,000 | No | Yes (UM only) |
| Florida | $0* / $0* | $10,000 | Yes ($10,000) | No |
| New York | $25,000 / $50,000 | $10,000 | Yes ($50,000) | Yes (UM/UIM) |
| Texas | $30,000 / $60,000 | $25,000 | No | No |
| Pennsylvania | $15,000 / $30,000 | $5,000 | Yes ($5,000 Medical) | Yes (UM/UIM) |
| Illinois | $25,000 / $50,000 | $20,000 | No | Yes (UM/UIM) |
| Ohio | $25,000 / $50,000 | $25,000 | No | No |
| Michigan | $50,000 / $100,000 | $10,000* | Yes (Unlimited with limitations) | Yes (UM/UIM) |
| New Jersey | $15,000 / $30,000 | $5,000 | Yes ($15,000) | Yes (UM/UIM) |
| Arizona | $25,000 / $50,000 | $15,000 | No | No |
*Florida does not mandate BI liability but requires PIP and PD liability.
