- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Review your state's car insurance laws and regulations because every state has a Department of Insurance which enforces a unique set of laws regulating your car insurance.
While roads and highways, vehicles and drivers are essentially the same no matter which state you are in, each state has its own set of laws and regulations governing matters concerning car insurance. Each state has its own Department of Insurance whose responsibility it is to enforce those laws.
How does car insurance vary from state to state?
State Minimum Requirements for Coverage
Each state has established minimum coverage requirements for bodily injury and property damage. These amounts are the minimum coverage you must carry in order to legally drive an automobile in your particular state, but are probably not sufficient in terms of protecting your assets in the event of a severe accident in which you are at fault. In some circumstances, you can lose your home and other valuables if your car insurance does not cover the extent of the bodily injury and property damage.
No-fault states
12 states and Puerto Rico have "no-fault" auto insurance provisions for policyholders, which allow them to recover the cost of damages and treatment for injuries from their own insurer. In its strictest application, states whose laws provide payment of the first-party (policyholder) benefits must be accompanied by a restriction of the right to sue in a "limited tort" provision.
Auto Insurance Rate Comparisons
States in which there are heavy concentrations of population and traffic densities are higher in the number of auto accidents and insurance claims. Auto insurance underwriters use this type of demographic data to arrive at risk profiles for drivers in each state, and therefore adjust insurance rates accordingly. Taking that into consideration, states in the Northeast, such as New York, New Jersey, and Washington, D.C. account for the highest number of claims and the highest cost per claim. The average annual auto insurance premium in 2005 was $945, while the average premium for Washington, D.C. for the same period was $1342.80 according to the National Association of Insurance Commissioners.
Uninsured and Underinsured Motorist Insurance
Statistics show that for every one percent increase in the unemployment rate in the U.S., the number of uninsured drivers increases by three-quarters of one percent. With law enforcement unable to track, apprehend and prosecute any appreciable number of these drivers, the expected number of uninsured drivers in the U.S. is expected to rise to 16.1 percent in 2010. While most states do not require drivers to obtain coverage for uninsured and underinsured motorists, several areas in the U.S. do require it.
These and other differences in the car insurance laws and regulations in each state make it imperative to learn before you buy or renew your policy. Consult this list of states to confirm the minimum amounts required and any other of your state's issues which you may have to address.
