Understanding the State-Mandated Requirements for Minimum Auto Liability Insurance
- The state will require the driver to carry a minimum amount of liability coverage to protect other drivers on the road. The minimum amounts vary from state to state. For example, Florida requires drivers to carry $10,000 personal injury protection coverage and $10,000 property damage insurance when registering a vehicle in the state. California requires drivers to carry $15,000 for bodily injury or death to one person in an accident, $30,000 for bodily injury or death for more than one person and $5,000 for property damage coverage.
- Personal injury protection insurance is a requirement in states that have no-fault laws. The insurance covers the policyholder regardless of who is at fault in an automobile accident. The policy also covers children, members of the household and passengers that do not carry a personal injury protection policy of their own. The insurance covers policyholders when injured as a passenger in another car or as a pedestrian or while riding a bicycle.
- Most states require drivers carry proof of insurance in the vehicle at all times. Law enforcement may request proof of insurance at the scene of an accident or during a routine traffic stop. Drivers also must provide proof of insurance when registering a vehicle in the state. States also may require insurance companies inform the state when a policyholder allows insurance to lapse. The driver must provide proof of insurance to the state to avoid penalties or suspension of the vehicle registration in the state.
- States may require the driver provide proof of insurance to register a vehicle in the state. The insured driver must submit an insurance card or the policy number and name of the insurance company to the state department of motor vehicles during the registration process. In addition, the driver may be required to submit proof of insurance when renewing vehicle registration.
- Drivers operating a vehicle without insurance may face penalties such as fines, registration suspension and license suspension. Each state imposes its own penalties for drivers guilty of driving without automobile insurance.
