Photo: Alex Smith, CC0, via Wikimedia Commons
Each US state sets its own minimum car insurance, so there is no single national figure. States generally require liability insurance, usually written as three numbers such as 30/60/15 (in thousands of dollars). This guide explains what those numbers mean, what no-fault and SR-22 mean, and what new drivers and their parents should check, using California and New York as worked examples.
Key facts
- Minimums vary by state. California: $30,000 / $60,000 / $15,000. New York: $25,000 / $50,000 / $10,000, plus no-fault and uninsured motorist coverage (as of November 2026).
- Minimum liability pays for damage you cause to others. It does not repair your own car.
- No-fault (personal injury protection) pays your own medical costs and lost earnings regardless of who caused the crash. New York is a no-fault state.
- An SR-22 is a form your insurer files with the DMV to prove you have coverage, usually after a suspension.
- Tell your insurer when a new driver joins your household, including a teen with a permit, and ask how your policy covers permit drivers.
How to read minimum liability limits
Liability limits are usually shown as three numbers. Using California’s minimum, 30/60/15:
| Number | Covers | California minimum |
|---|---|---|
| First | Injury or death of one person | $30,000 |
| Second | Injury or death of everyone in one crash | $60,000 |
| Third | Damage to other people’s property | $15,000 |
If a crash you cause costs more than your limits, you can be personally responsible for the rest. California’s handbook says drivers 18 and older are financially responsible for their own driving, and parents or guardians are responsible for drivers under 18.
Minimum car insurance by state: two examples
| Required coverage | California | New York |
|---|---|---|
| Bodily injury, one person | $30,000 | $25,000 (injury), $50,000 (death) |
| Bodily injury, all people | $60,000 | $50,000 (injury), $100,000 (death) |
| Property damage | $15,000 | $10,000 |
| No-fault (PIP) | Not required | Required: up to $50,000 per person for economic loss |
| Uninsured motorist | Must be offered; you can decline in writing | Required, at the same minimum limits as bodily injury |
For every other state, check the state insurance department or DMV for the current figures. Minimums can change, so recheck before you buy.
Types of coverage explained
| Coverage | What it pays | Required? |
|---|---|---|
| Liability | Injuries and damage you cause to others | Yes in California and New York; check your state |
| Uninsured / underinsured motorist | Your injuries when the at-fault driver has no or too little insurance, or in a hit-and-run | Required in some states, such as New York |
| Personal injury protection (no-fault) | Your medical costs and lost earnings, whoever was at fault | In no-fault states, such as New York |
| Medical payments | Medical costs for you and your passengers regardless of fault | Optional in California |
| Collision | Damage to your car from hitting another vehicle or object | Optional in California and New York |
| Comprehensive | Damage from things other than a collision, such as theft, fire or vandalism | Optional in California and New York |
What are no-fault states?
In a no-fault state, your own policy’s personal injury protection pays your medical bills and lost earnings after a crash, up to a limit, regardless of who caused it. New York’s Department of Financial Services says no-fault is designed to pay promptly, regardless of who is at fault. New York’s no-fault coverage pays up to $50,000 per person. Not every state uses no-fault. Check your state insurance department to see which system applies to you.
What is an SR-22?
An SR-22 is a certificate your insurance company files with the state to prove you carry at least the minimum coverage. A state may require one after a license suspension or serious violation. In California, for example, if you are in a crash without insurance your license can be suspended for up to four years, and you can get it back during the last three years by filing an SR 22 and keeping it in place for three years. The form is proof of coverage, not a type of coverage on its own.
What happens if you drive without insurance?
- California: fines, license suspension and impoundment are possible, and a crash without coverage can mean a suspension of up to four years, whoever was at fault.
- New York: the DMV can suspend your registration and your license if you do not keep coverage. Coverage must stay in force while the car is registered, even if you do not drive it.
You must carry proof of insurance when you drive, including on your road test. See US road test by state.
Checklist for new drivers and parents
- Tell your insurer as soon as a new driver lives in your household. California says you must report new household drivers.
- Ask how the policy treats a permit holder versus a licensed teen.
- Check whether any household driver is excluded. An excluded driver is not covered when driving.
- Get several written quotes for the same coverage levels.
- Ask about discounts, such as good driver, multi-car and anti-theft discounts.
- Consider limits above the state minimum: a serious crash can cost far more than the minimum.
- Keep your insurance card in the car (or on your phone where allowed).
What affects the price?
California’s Department of Insurance lists the information insurers use, including how long you have been driving, your driving record (accidents and moving violations), how you use the car, annual mileage, and the vehicle. In California, a Good Driver Discount requires being licensed for at least three years in a row, among other conditions, so new drivers usually pay more at first. A clean record helps. See points systems and license suspensions.
Common questions
Do I need my own insurance to drive with a learner’s permit?
The car must be insured. Whether a permit driver needs to be listed on the policy depends on the insurer and state, so ask your insurer before the first drive.
Is car insurance required in every state?
States set their own financial responsibility rules, and some allow alternatives to a policy. California, for example, accepts a $35,000 cash deposit with the DMV or a $35,000 surety bond. Check your state.
Is minimum coverage enough?
It meets the law but may not cover a serious crash, and it does not cover damage to your own car.
What if I cannot afford insurance?
Some states run low-cost programs. California has the California Low Cost Automobile Insurance Program for eligible drivers.
Does insurance follow the car or the driver?
It depends on the policy and state. Ask your insurer how it covers other drivers using your car and you driving someone else’s.
Related: what to do after a car crash and moving to a new state. All national guides: learning to drive in the USA.
Sources
- California DMV, “California Driver’s Handbook, Section 10: Financial Responsibility, Insurance Requirements, and Collisions” (dmv.ca.gov)
- California Department of Insurance, “Automobile Insurance Information Guide” (insurance.ca.gov)
- New York DMV, “Insurance requirements” (dmv.ny.gov)
- New York State Department of Financial Services, “Auto Insurance” (dfs.ny.gov)