Make sure you have enough liability coverage

By Insure.com

Each state has different requirements when it comes to auto insurance. In some places, you can't register a car without showing proof of liability insurance. Other states use a kind of honor system that doesn't require proof from drivers until they have accidents or tickets on their records.

Nonetheless, states do mandate that a minimum of liability coverage be sold. In other words, you can't walk into your insurance agent's office and buy only $2,000 worth of coverage. If you're going to buy it, you have to buy it for at least the amounts listed in the table.

How to read liability limits

In the table listed below you will see a series of three numbers listed. Here's a breakdown on what they represent:

• First number: bodily injury liability maximum for one person injured in an accident.

• Second number: bodily injury liability maximum for all injuries in one accident.

• Third number: property damage liability maximum for one accident.

So, in Alabama, the minimum liability limits are $20,000 for injury liability for one person in an accident, $40,000 for all injuries in an accident and $10,000 for property damage in an accident.

What the heck is no-fault?

Some states have "no-fault" laws, meaning your auto policy must pay for bodily injury and property damages regardless of who caused the accident. That's because it's often difficult to figure out exactly who caused a chain collision, for example.

The laws were enacted in order to keep insurance costs down and to expedite the claims-paying process.

No-fault laws also say you can't sue another party for damages and medical bills unless they total more than a certain amount, which varies by state.

Liability requirements
State	Limits (in thousands of dollars)*	No-fault law?
Alabama	20/40/10	No
Alaska	50/100/25	No
Arizona	15/30/10	No
Arkansas	25/50/25	No
California	15/30/5	No
Colorado	25/50/15	Yes
Connecticut	20/40/10	No
Delaware	15/30/10	No
D.C.	25/50/10	No
Florida**	10/20/10	Yes
Georgia	25/50/25	No
Hawaii	20/40/10	Yes
Idaho	25/50/15	No
Illinois	20/40/15	No
Indiana	25/50/10	No
Iowa	20/40/15	No
Kansas	25/50/10	Yes
Kentucky	25/50/10	Yes
Louisiana	10/20/10	No
Maine	50/100/25	No
Maryland	20/40/15	No
Massachusetts	20/40/5	Yes
Michigan	20/40/10	Yes
Minnesota	30/60/10	Yes
Mississippi	10/20/5	No
Missouri	25/50/10	No
Montana	25/50/10	No
Nebraska	25/50/25	No
Nevada	15/30/10	No
New Hampshire***	25/50/25	No
New Jersey**	15/30/5	Yes
New Mexico	25/50/10	No
New York	25/50/10	Yes
North Carolina	30/60/25	No
North Dakota	25/50/25	Yes
Ohio	12.5/25/7.5	No
Oklahoma	10/20/10	No
Oregon	25/50/10	No
Pennsylvania	15/30/5	Yes
Rhode Island	25/50/25	No
South Carolina	15/30/10	No
South Dakota	25/50/25	No
Tennessee***	25/50/10	No
Texas	20/40/15	No
Utah	25/50/15	Yes
Vermont	25/50/10	No
Virginia	25/50/20	No
Washington	25/50/10	No
West Virginia	20/40/10	No
Wisconsin***	25/50/10	No
Wyoming	25/50/20	No

* Updated March 2004

** Property-damage liability only is mandatory

*** Liability insurance not mandatory; limits are for financial responsibility

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