November 20, 2025
CheapInsurance.com cites examples of states with the best, common, and lowest legal responsibility limits and supplies a listing of every state’s required minimal legal responsibility limits.
On this article, CheapInsurance.com cites examples of states with the best, common, and lowest legal responsibility limits, after which supplies a listing of every state’s required minimal legal responsibility limits. These purchasing for legitimate protection, significantly within the context of financing or leasing a automobile, also needs to observe why merely assembly the minimal could also be dangerous.
What “Minimal Legal responsibility Protection” Means and Why It Exists
Each U.S. state, besides one, requires drivers to hold a minimal stage of auto insurance coverage to function a automobile legally.
Legal responsibility protection protects different folks and their property when the insured driver is at fault in an accident. Particularly, it consists of two most important elements:
- Bodily Damage (BI) Legal responsibility: That is the quantity the insurer pays for others’ medical bills, misplaced wages, or authorized claims when the insured driver injures somebody.
- Property Harm (PD) Legal responsibility: That is the quantity the insurer pays for harm to another person’s automobile or property when the insured driver is at fault.
These limits are sometimes expressed as a set of numbers, akin to 25/50/25. This format means $25,000 per individual for damage, as much as $50,000 per accident for damage to all individuals, and $25,000 for property harm.
States mandate these minimal protection ranges to make sure that victims of accidents have some supply of compensation and that drivers assume monetary duty, stopping others from having to soak up the price of the damages.
Instance State Comparisons: Highest, Common and Lowest Minimums
To make clear how extensively these necessary legal responsibility coverages differ throughout the USA, CheapInsurance.com examines particular state examples.
Highest Minimums Instance: Maine
In Maine, the minimal bodily damage legal responsibility is $50,000 per individual and $100,000 per accident, with property harm legal responsibility at $25,000. This locations Maine among the many states with the best statutory minimal legal responsibility protection. That is important as a result of if a driver causes a severe accident in Maine, the insurer covers prices as much as these limits. Nonetheless, the driving force could also be personally accountable for any prices exceeding these limits.
Nationwide Common sort Instance: Georgia
In Georgia, the minimal legal responsibility limits are $25,000 per individual bodily damage, $50,000 per accident bodily damage, and $25,000 property harm. These 25/50/25 ranges are widespread throughout many states. Quite a few drivers assume they’re adequately protected just because they meet the minimal requirement, a perception that may show dangerous in a severe accident.
Lowest Minimums Instance: New Hampshire
New Hampshire stands as an exception to just about all different states as of early 2025. Drivers there are usually not mandated to hold particular legal responsibility insurance coverage; as an alternative, they need to merely show “monetary duty.” Whereas that is the least strict requirement (permitting proof of property or a bond), it typically leads to the state’s minimal monetary duty limits of $25,000/$50,000/$25,000.
These limits are steadily insufficient safety; a driver at fault in a severe accident could face an insurance coverage declare the place damages (medical payments, property restore) far exceed the minimal protection, placing private property in danger to cowl the distinction.
Why You Would possibly Want Protection Past the Minimal
Assembly the authorized minimal protects one legally, however typically fails to offer enough monetary safety or guarantee a easy auto insurance coverage expertise. Insurance coverage consultants steadily advocate customers think about increased limits or further protection for a number of widespread monetary and threat administration causes:
When a automobile is financed or leased
When financing or leasing a automobile, the lender or lessor normally requires the driving force to take care of not solely legal responsibility protection but additionally full protection, which incorporates collision and complete insurance coverage, to guard their funding. Moreover, if a driver causes an accident and the prices for repairs or negligence exceed their legal responsibility limits, the lender or different events might pursue them for the distinction. Selecting solely minimal limits steadily leaves a driver underinsured.
When different precious property are owned
For people who personal property akin to a house, financial savings, investments, or different private property, a lawsuit ensuing from a severe automotive accident might simply exceed minimal legal responsibility limits. This publicity creates a big threat to particular person property. Choosing the next legal responsibility restrict helps protect and shield these precious possessions.
When safety from uninsured or underinsured drivers is desired
Many states’ minimal legal responsibility coverages don’t embody, or solely minimally embody, uninsured or underinsured motorist (UM/UIM) protection. This protection is important as a result of it protects the insured if one other individual causes a crash and doesn’t carry sufficient insurance coverage to cowl the damages. Including increased limits or optionally available coverages considerably will increase the margin of economic security.
When restore and alternative prices are excessive
Trendy automobiles typically value considerably extra to restore than the property harm legal responsibility minimums established in lots of states. Equally, medical prices proceed to rise. Minimal limits could not adequately cowl a multi-vehicle accident or a extra severe damage, leaving the driving force accountable for substantial out-of-pocket bills.
Learn how to Interpret and Use These Minimums
At all times examine a state’s required minimal. For probably the most correct and present knowledge, one can seek the advice of state Departments of Insurance coverage or regulatory guides, akin to these from the Nationwide Affiliation of Insurance coverage Commissioners (NAIC).
- Perceive the three-number format: Protection limits are introduced as “per individual/per accident/property harm.”
- Minimal protection is authorized, however not at all times secure: Whereas assembly the minimal is legally legitimate, it will not be the most secure monetary alternative.
- Interstate driving issues: Coverage protection should meet the registered state’s necessities; if driving in a state with increased minimums, the insurer might have to regulate accordingly.
- Price of elevated limits: When purchasing for an improve in legal responsibility limits, ask an agent concerning the further value, because the incremental value is usually modest.
Figuring out enough protection
The authorized minimal legal responsibility protection is the baseline. CheapInsurance.com recommends evaluating property, automobile worth, and threat publicity to find out if protection ought to exceed the minimal.
If a automobile is financed or leased, or if important property exist (house, financial savings, investments), it’s smart to think about protection nicely above the state minimal.
When purchasing for a brand new automotive insurance coverage coverage or evaluating quotes, don’t cease at “meets the minimal.” Discover legal responsibility limits, optionally available coverages, uninsured or underinsured motorist safety, and whether or not the coverage covers greater than the fundamentals
Be aware: At all times affirm together with your state’s present regulatory supply or your insurance coverage agent, as limits could change.
Be aware: At all times affirm together with your state’s present regulatory supply or your insurance coverage agent, as limits could change.
- The authorized minimal legal responsibility protection represents solely probably the most primary requirement. Each driver ought to totally consider their complete property, automobile worth, and private threat publicity to find out the suitable legal responsibility limits.
- For drivers financing or leasing a automobile, or these with important property akin to a house, financial savings, or investments, securing protection nicely above the state minimal is a prudent monetary choice.
- When purchasing for a brand new automotive insurance coverage coverage or evaluating quotes, keep away from merely settling for the “meets the minimal” possibility. As an alternative, discover increased legal responsibility limits, precious optionally available coverages, and enough uninsured or underinsured motorist safety.
- Use this text as a foundational reference for understanding state minimums, however at all times examine with a licensed insurance coverage agent or the state Division of Insurance coverage for probably the most present and particular necessities.
This story was produced by CheapInsurance.com and reviewed and distributed by Stacker.
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