Insurance in the US is regulated at the state level. This means each state has its own statutes and rules on which types of insurance coverage are mandatory.
There are three main types of insurance coverage required in almost all states:
Health insurance is no longer required at the federal level, although some states still impose tax penalties for those who don’t have coverage.
Some states also make it compulsory for certain occupations to carry professional indemnity insurance.
If you want to learn more about what insurance is required by law in the US, Insurance Business gives you a state-by-state breakdown per policy type in this guide. Read on and find out.
Car insurance, also called auto insurance, is designed to protect you financially if you get into an accident or your vehicle is stolen. This policy provides three kinds of protection:
Car insurance is required by law in all states, except in New Hampshire and Virginia.
In New Hampshire, drivers are only required to show proof of their financial capability to cover for injuries and damages for accidents that they cause.
In Virginia, motorists can opt out of coverage if they can provide evidence of financial responsibility. For drivers who choose to be uninsured, they will need to pay a $500 uninsured motor vehicle (UMV) fee at the state’s Department of Motor Vehicle.
The remaining states impose varying requirements, including the policy type and minimum liability limits. Here’s a summary of the common types of car insurance:
Here’s a state-by-state breakdown of the mandatory coverages and minimum liability limits:
MINIMUM MANDATORY CAR INSURANCE LIMITS BY STATE
State
Minimum mandatory requirements
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $50,000 per person
BI: $100,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $15,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $15,000 per person
BI: $30,000 per accident
PD: $5,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $15,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
BI: $10,000 per accident
PIP: $15,000 per person
PIP: $30,000 per accident
PD: $10,000 per accident
PIP: $10,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $20,000 per person
BI: $40,000 per accident
PD: $10,000 per accident
PIP: $10,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $15,000 per accident
BI: $25,000 bodily injury liability per person
BI: $50,000 bodily injury liability per accident
PD: $20,000 property damage liability per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $20,000 per person
BI: $40,000 per accident
PD: $15,000 per accident
BI: $25,000 person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
$4,500 for medical expenses
$900 per month to a year of disability or loss of income coverage
$25 a day for in-home services
$4,500 for rehabilitation-related expenses
$2,000 for funeral, burial, or cremation expenses
Survivor benefits of up to $900 per month up to a year for disability or loss of income and $25 per day for in-home services
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
PIP: $10,000 per person
BI: $15,000 per person
BI: $30,000 per accident
PD: $25,000 per accident
BI: $50,000 per person
BI: $100,000 per accident
PD: $25,000 per accident
UM/UIM BI: $50,000 per person
UM/UIM BI: $100,000 per accident
BI: $30,000 per person
BI: $60,000 per accident
PD: $15,000 per accident
UM/UIM BI: $30,000 per person
UM/UIM BI: $60,000 per accident
BI: $20,000 per person
BI: $40,000 per accident
PD: $5,000 per accident
UM/UIM BI: $20,000 per person
UM/UIM BI: $40,000 per accident
PIP: $8,000 per accident
BI: $20,000 per person
BI: $40,000 per accident
Property protection: $1 million
BI: $30,000 per person
BI: $60,000 per accident
PD: $10,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
PIP: $40,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $20,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $20,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
Car insurance is not mandatory, but these are the requirements for those who opt in.
PD: $5,000 per accident
PIP: $1,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
PIP: $50,000 personal injury protection per person
$50,000 liability for death per person
$100,000 liability for death per accident
BI: $30,000 per person
BI: $60,000 per accident
PD: $25,000 per accident
UM/UIM BI: $30,000 per person
UM/UIM BI: $60,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
PIP: $30,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $20,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
PIP: $15,000 per person
BI: $15,000 per person
BI: $30,000 per accident
PD: $5,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $15,000 per accident
BI: $30,000 per person
BI: $60,000 per accident
PD: $25,000 per accident
BI: $25,000 per person
BI: $65,000 per accident
PD: $15,000 per accident
PIP: $3,000 per person
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 property damage liability per accident
UM/UIM BI: $50,000 per person
UM/UIM BI: $100,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $20,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
Car insurance is not mandatory, but these are the requirements for those who opt in.
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $25,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $10,000 per accident
UM/UIM BI: $25,000 per person
UM/UIM BI: $50,000 per accident
BI: $25,000 per person
BI: $50,000 per accident
PD: $20,000 per accident
Learn more about how car insurance works in this guide.
Motorcycle insurance is a legal requirement for anyone riding their two-wheelers on the road. Just like auto insurance, motorcycle insurance is required by law in nearly all states. The only exception is Florida.
This type of policy protects riders against financial liability if their motorcycles are involved in an accident. It also covers the repair or replacement costs if their motorbikes are damaged or stolen.
The minimum requirement for motorbike riders is liability coverage. This type of policy compensates a third party for injuries and property damage that the policyholder causes.
Other policies, including collision, PIP, UM/UIM, and guest passenger liability coverage, are available but these are optional.
A motorcycle insurance policy is also subject to minimum liability limits, which vary depending on the state. The limits are mostly similar to those in car insurance.
Find out more about how motorcycle insurance works in this comprehensive guide to bike insurance in the US.
Workers’ compensation is a type of business insurance that covers the cost of medical care and part of an employee’s lost income if they get sick or injured while doing their job.
All states, except Texas, require employers with a certain number of employees to take out coverage. Each state has its own Workers’ Compensation Board tasked with processing claims. If needed, the board also determines whether the benefits should be paid and by how much. For every successful claim, employees are given the option to receive a one-time payout or structured weekly or bi-weekly cash benefits from their employers’ insurers.
Each state implements its own regulations when it comes to workers’ compensation. You can click on the links below if you want to learn more about the laws governing workers’ compensation in your state.
STATE-BY-STATE GUIDE TO WORKERS’ COMPENSATION LAWS
