How do I read my insurance policy?

Fran

Spring, TX.

Fran,

Wherever you live in the United States, you should carry auto insurance. Most states require it, along with minimum coverage levels you must buy. In states that don’t require auto insurance, you must show that you have enough assets in case you cause an accident, and if you don’t have enough assets you then have to buy auto insurance.

 However, the state minimum is not necessarily “adequate.” The Insurance Information Institute recommends you carry $100,000 of bodily injury protection per person and $300,000 per accident.

 How to read liability limits

 Here’s how to read the following table of liability minimums.

 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.

 Thus, in Alabama, for example, 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 is no-fault?

 If your state has a “no-fault” auto insurance law, your auto policy must pay medical bills for you and your passengers regardless of who caused the accident. No-fault laws are intended to keep insurance fraud down.

State Liability required? Liability minimums (in thousands of dollars) PIP required? No-fault state? Uninsured motorist coverage required?

Alabama Yes, 25/50/25 No No No

Alaska Yes, 50/100/25 No No No

Arizona Yes, 15/30/10 No No No

Arkansas Yes, 25/50/25 Yes No No

California (1)  Yes, 15/30/5 No No No

Colorado Yes, 25/50/15 No No No

Connecticut Yes, 20/40/10 No No Yes

Delaware Yes, 15/30/10 Yes No  No

Florida (2)  No, 10/20/10 Yes Yes No

Georgia Yes, 25/50/25 No No No

Hawaii Yes, 20/40/10 Yes Yes No

Idaho Yes, 25/50/15 No No No

Illinois Yes, 20/40/15 No No Yes

Indiana Yes, 25/50/10 No No No

Iowa Yes, 20/40/15 No No No

Kansas Yes, 25/50/10 Yes Yes Yes

Kentucky Yes, 25/50/10 Yes Yes No

Louisiana Yes, 10/20/10 No No No

Maine (3) Yes, 50/100/25 No No Yes

Maryland (4) Yes, 20/40/15 Yes No Yes

Massachusetts Yes, 20/40/5 Yes Yes Yes

Michigan Yes, 20/40/10 Yes Yes No

Minnesota Yes, 30/60/10 Yes Yes Yes

Mississippi Yes, 25/50/25 No No No

Missouri Yes, 25/50/10 No No Yes

Montana Yes, 25/50/10 No No No

Nebraska Yes, 25/50/25 No No No

Nevada Yes, 15/30/10 No No No

New Hampshire No, 25/50/25 No No Yes

New Jersey (5) Yes, 15/30/5 Yes Yes Yes

New Mexico Yes, 25/50/10 No No No

New York (6)  Yes, 25/50/10 Yes Yes Yes

North Carolina Yes, 30/60/25 No No No

North Dakota Yes, 25/50/25 Yes Yes Yes

Ohio Yes, 12.5/25/7.5 No No No

Oklahoma Yes, 25/50/25 No No No

Oregon Yes, 25/50/10 Yes No Yes

Pennsylvania Yes, 15/30/5 Yes Yes No

Rhode Island (2) Yes, 25/50/25 No No Yes

South Carolina Yes, 25/50/25 No No Yes

South Dakota Yes, 25/50/25 No No Yes

Tennessee (2) Yes, 25/50/10 No No No

Texas Yes, 25/50/25 No No No

Utah (2) Yes, 25/50/15 Yes Yes No

Vermont Yes, 25/50/10 No No Yes

Virginia Yes, 25/50/20 Yes No Yes

Washington Yes, 25/50/10 No No No

Washington D.C. Yes, 25/50/10 No No Yes

West Virginia Yes, 20/40/10 No No Yes

Wisconsin No, 25/50/10 No No Yes

Wyoming Yes, 25/50/20 No No No

Hope this help you with your answer.

Great Question.