How Are Auto Insurance Rates Determined?
Below you will find an a wealth of information specific to auto insurance within your state of residence, as well as other auto insurance resources that will be helpful to you when you are shopping for a new auto insurance policy.
- Auto insurance regulations by state
- Auto Insurance Quotes by state
- Auto Insurance Company Ratings
- Auto Insurance Shopping Tips
- Insurance commission phone numbers (by state)
- Worst cities for auto theft
- 10 Most Expensive cars and trucks to insure
- 10 Least Expensive cars and trucks to insure
- How Are Auto Insurance Rates determined?
Auto insurance regulations by state
Each state has it's own minimum coverage that is required by law in order for a driver to maintain their driver's license in that state.
There are six basic auto insurance coverage components. They are:
- Bodily injury liability (Required in most states): For injuries the policyholder causes to someone else.
- Property damage liability (Required in most states): For damage the policyholder causes to someone else's property (usually vehicles).
- Medical payments or personal injury protection (PIP) (Required in some states): For treatment of injuries to the driver and passengers of the policyholder's car.
- Collision (Generally optional): For damage to the policyholder's car from a collision. The collision could be with another vehicle or a tree etc.
- Comprehensive (Generally optional): For damage to the policyholder's car that doesn't involve a collision with another car. Covered risks may include fire, theft, vandalism etc.
- Uninsured motorist (Required in some states): For treatment of the policyholder's injuries that result from a collision with an uninsured driver. This coverage comes into play when an at-fault driver has liability insurance, but the limit of that insurance is insufficient to pay for your damages.
Requirements by State
| State | Coverage Type(s) Required | Minimum Liability Limits* ($000) |
| AL | Bodily Injury and Property Damage Liability (effective 6/2000) | 20/40/10 |
| AK | Bodily Injury and Property Damage Liability | 50/100/25 |
| AZ | Bodily Injury and Property Damage Liability | 15/30/10 |
| AR | Bodily Injury and Property Damage Liability | 25/50/25 |
| CA | Bodily Injury and Property Damage Liability | 15/30/5 |
| CO | Bodily Injury and Property Damage Liability, Personal Injury Protection | 25/50/15 |
| CT | Bodily Injury and Property Damage Liability, Uninsured and Underinsured Motorist | 20/40/10 |
| DE | Bodily Injury and Property Damage Liability, Personal Injury Protection | 15/30/5 |
| DC | Bodily Injury and Property Damage Liability, Uninsured Motorist | 25/50/10 |
| FL | Property Damage Liability, Personal Injury Protection | 10/20/10 |
| GA | Bodily Injury and Property Damage Liability | 25/50/25 |
| HI | Bodily Injury and Property Damage Liability, Personal Injury Protection | 20/40/10 |
| ID | Bodily Injury and Property Damage Liability | 25/50/15 |
| IL | Bodily Injury and Property Damage Liability, Uninsured Motorist | 20/40/15 |
| IN | Bodily Injury and Property Damage Liability | 25/50/10 |
| IA | Bodily Injury and Property Damage Liability | 20/40/15 |
| KS | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10 |
| KY | Bodily Injury and Property Damage Liability, Personal Injury Protection | 25/50/10 |
| LA | Bodily Injury and Property Damage Liability | 10/20/10 |
| ME | Bodily Injury and Property Damage Liability, Uninsured Motorist, Underinsured Motorist | 50/100/25 |
| MD | Bodily Injury and Property Damage Liability, Personal Injury Protection (may be waived for policyholder but compulsory for passengers), Uninsured Motorist | 20/40/10 |
| MA | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 20/40/5 |
| MI | Bodily Injury and Property Damage Liability, Personal Injury Protection | 20/40/10 |
| MN | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured and Underinsured Motorist | 30/60/10 |
| MS | Bodily Injury and Property Damage Liability | 10/20/5 |
| MO | Bodily Injury and Property Damage Liability, Uninsured Motorist | 25/50/10 |
| MT | Bodily Injury and Property Damage Liability | 25/50/10 |
| NE | Bodily Injury and Property Damage Liability | 25/50/25 |
| NV | Bodily Injury and Property Damage Liability | 15/30/10 |
| NH | Financial Responsibility Only, Underinsured Motorist | 25/50/25 |
| NJ | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 15/30/5 |
| NM | Bodily Injury and Property Damage Liability | 25/50/10 |
| NY | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10 |
| NC | Bodily Injury and Property Damage Liability | 30/60/25 |
| ND | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/25 |
| OH | Bodily Injury and Property Damage Liability | 12.5/25/7.5 |
| OK | Bodily Injury and Property Damage Liability | 10/20/10 |
| OR | Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist | 25/50/10 |
| PA | Bodily Injury and Property Damage Liability, Medical Payments | 15/30/5 |
| RI | Bodily Injury and Property Damage Liability, Uninsured Motorist | 25/50/25 |
| SC | Bodily Injury and Property Damage Liability, Uninsured Motorist | 15/30/10 |
| SD | Bodily Injury and Property Damage Liability, Uninsured Motorist | 25/50/25 |
| TN | Financial Responsibility Only | 25/50/10 |
| TX | Bodily Injury and Property Damage Liability | 20/40/15 |
| UT | Bodily Injury and Property Damage Liability, Personal Injury Protection | 25/50/15 |
| VT | Bodily Injury and Property Damage Liability, Uninsured and Underinsured Motorist | 25/50/10 |
| VA | Bodily Injury and Property Damage Liability, Uninsured Motorist | 25/50/20 |
| WA | Bodily Injury and Property Damage Liability | 25/50/10 |
| WV | Bodily Injury and Property Damage Liability, Uninsured Motorist | 20/40/10 |
| WI | Financial Responsibility Only, Uninsured Motorist | 25/50/10 |
| WY | Bodily Injury and Property Damage Liability | 25/50/20 |
*The first two numbers refer to bodily injury liability limits and the third refers to the property damage liability limit. (ex. 20/40/10 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 for the entire accident, and $10,000 worth of coverage for property damage.) The state minimums are based on the most current information available. You should check your specific state requirements to verify these figures.
Auto Insurance Company Ratings
There are some great tools available on the internet to research the top auto insurers in the marketplace. These rating tools primarily measure an insurers:
1) financial strength 2) Claims paying capability and 3) debt ratings 4) customer satisfaction
- AM Best Company - Contains ratings of more than 6,000 insurance carriers.
- Standard & Poor's - Measures the financial strength of thousands of companies (updated frequently).
- Moody's - reports financial strength debt ratings and other key financial indicators.
- JD Power & Associates - Conducts research that is used by a variety of industries to improve product quality and customer satisfaction. Bases research solely on responses from millions of consumers and business customers worldwide.