Glossary

Minimum coverage

The least car insurance a state lets you carry to drive legally, usually liability coverage at set limits and sometimes PIP or uninsured motorist coverage.

Also called: state minimum coverage, minimum liability coverage, liability-only, state minimums

Minimum coverage is a policy that meets only your state's legal requirement for car insurance. In nearly every state that means liability insurance at specified liability limits, written as three numbers: bodily injury liability per person, bodily injury per accident, and property damage liability per accident. California's minimum, for example, rose to 30/60/15 on January 1, 2025. Some states also require personal injury protection, medical payments or uninsured motorist coverage.

Minimum coverage pays for injuries and damage you cause to others, up to those limits. It does not pay to repair or replace your own car; that takes collision and comprehensive, often called full coverage. Example: you cause a crash that injures another driver, whose bills total $55,000. With a $30,000 per-person limit, your insurer pays $30,000, and you can be sued for the remaining $25,000 (hypothetical figures).

Minimum coverage is the cheapest way to drive legally and can make sense for an older car you could afford to replace. But state minimums are often far below the cost of a serious crash, and anyone with savings, a home or a financed car usually needs more. Lenders require collision and comprehensive on financed vehicles. See minimum car insurance requirements by state and state minimum vs full coverage: which do you need?.

Last reviewed October 4, 2026

In the index now

Related terms

Liability limits The most a liability policy will pay for injuries and property damage you cause, usually written as three numbers such as 100/300/100. Financial responsibility law A state law requiring drivers to show they can pay for injuries or damage they cause, almost always by carrying minimum liability insurance. Full coverage Informal shorthand for a policy combining liability with collision and comprehensive, the mix lenders usually require. It is not a defined policy type. Bodily injury liability The part of auto liability insurance that pays for injuries or deaths you cause to other people in a crash, plus your legal defense. Property damage liability The part of liability coverage that pays for damage you cause to other people's cars and property, such as fences, buildings and poles.

Related guides

The average cost of car insurance, and what the numbers mean The official U.S. average was $1,282 per vehicle in 2023 (NAIC); AAA put full coverage at $2,098 in 2026. What each figure means and how to estimate your own. California car insurance: costs, Prop 103 and the 2025 minimums How Proposition 103 shapes California car insurance prices, what the 30/60/15 minimums since 2025 mean, and where California ranks on cost. How to read car insurance rate studies and average-cost claims Why "average cost of car insurance" figures disagree, what NAIC, BLS, AAA and quote-based studies each measure, and a checklist for judging any rate study. Why Louisiana car insurance is among the priciest Louisiana ranks near the top for auto insurance cost and last for affordability. Why, and what the 2020 and 2025 legal reforms change for drivers. State low-cost auto insurance programs Which states run low-cost car insurance programs, who qualifies for California's CLCA and New Jersey's dollar-a-day SAIP, and what to do if your state has none. State minimum vs full coverage: which do you need? How state-minimum car insurance differs from "full coverage," what each pays after a crash, and a simple test for deciding which one fits your car and finances.

Related insurers

GoAuto Insurance Baton Rouge low-cost auto insurer founded in 2009 that sells no-frills policies direct, online and in storefront offices, in eight Southern and Western states. Hugo A West Hollywood online agency selling six-month liability-only car insurance paid by the day, week or month, with no down payment, in 19 states. Kemper Chicago-based specialty auto insurer selling Kemper Auto and Infinity policies through agents in 10 states, focused on nonstandard and Spanish-speaking drivers. Fred Loya Insurance El Paso-based seller of low-cost, often minimum-limit auto policies through 800-plus storefront offices in about a dozen Sun Belt and Midwest states. Ocean Harbor Insurance A Florida-focused home and auto insurer whose basic-limits auto policies are sold by independent agents through managing general agent Pearl Holding Group.

Related tools

How much car insurance do I need? A starting point for your limits and options, from liability to gap and rental, built from common rules of thumb and your state's minimums. State car insurance requirements lookup Minimum car insurance, fault rules, PIP and uninsured motorist requirements and the regulator's hotline for any state, or two states side by side.