Minimum liability limits vary wildly by state. Here is what is actually required, what you should carry instead, and where the new 2025 rules apply.
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Every state sets a minimum liability limit drivers must carry to register a vehicle. Almost none of those minimums are enough to cover an actual accident. Florida's 10/20/10 minimum, for example, will pay $10,000 per injured person up to $20,000 per accident — numbers that have not been updated since 1971. A single ER visit today can exceed that. The minimum keeps you legal; it does not keep you protected.
California raised minimums to 30/60/15 effective January 1, 2025. Utah moved to 30/65/25. Virginia eliminated the option to pay an "uninsured motor vehicle fee" in lieu of carrying insurance. If your renewal date crossed a state boundary, your premium likely rose to reflect the new floor — even if you were already carrying higher limits.
For most homeowners and earners, 100/300/100 with a $500,000 to $1,000,000 personal umbrella is the right baseline. The cost difference between state minimums and 100/300/100 is typically $80 to $180 a year. The cost difference between not having an umbrella and having a $1M umbrella is usually $180 to $300 a year. Together, that buys you roughly fifty times the protection.
Twelve states use a no-fault system, where your own insurer pays your medical bills regardless of who caused the crash, in exchange for limits on suing the other driver. The remaining states use a tort system, where the at-fault driver's insurer pays. No-fault premiums tend to run higher because the insurer is on the hook more often, but recovery is faster and does not require litigation.
Roughly 14 percent of US drivers are uninsured. Another 30 percent carry only state minimums, which means they are functionally underinsured for any serious crash. UM/UIM coverage on your own policy steps in when the at-fault driver cannot. It is one of the cheapest line items on any policy and one of the most likely to actually be used. Carry it at the same limit as your liability coverage.
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