Is basic car insurance coverage a smart choice?
Purchasing only a basic car insurance plan will save you money, but is it enough coverage to protect you? Read on to examine the pros and cons of basic car insurance, also known as liability coverage.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Nov 24, 2024
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Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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If you’ve ever shopped for car insurance, you know how expensive it can be. Depending on your age, car, and driving record, an auto insurance policy could cost hundreds of dollars a month.
So what is a basic car insurance policy? Can drivers get cheap car insurance with a basic policy? And does a basic auto insurance policy offer enough protection on the road?
We’ll answer these questions and discuss some of the pros and cons of basic car insurance, so you’re well-informed before buying coverage.
- One significant benefit of a basic auto insurance policy is the low cost
- Basic car insurance doesn’t offer coverage for your vehicle in the event of an accident
- A full-coverage policy provides the best protection for car owners
What are the benefits of a basic car insurance policy?
Basic auto insurance — also known as liability car insurance coverage — pays for repairs if you injure someone or damage another person’s car in an accident.
The main benefit of liability coverage is that it is relatively inexpensive. While the amount you pay for basic car insurance varies based on several factors, you can bet you’ll pay less for a liability-only policy than a policy with more coverage, like collision insurance or GAP insurance.
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What are the drawbacks of a basic car insurance policy?
The most crucial drawback of having a basic auto insurance policy is the lack of coverage. While your insurance will help cover damage you cause to other people and their vehicles, basic insurance won’t pay for damage to your car.
Other cons of a switching to liability-only car insurance include:
- Bodily injuries to you and your passengers may not be covered if the accident is considered your fault.
- You will not have coverage for non-accident-related damages, such as damage from a storm or debris.
- If the other driver was uninsured or underinsured, you could have to make payments even if the accident was their fault.
While a basic auto insurance policy can be tempting, it’s essential to consider purchasing more than your state’s minimum requirement for auto insurance coverage.
How much insurance do I have to carry on my vehicle?
The laws for basic car insurance coverage vary by state. The table below shows the minimum car insurance required by each state.
Basic Car Insurance Requirements by State
State Insurance Type Required Minimum Coverage Amount
Alabama Bodily injuries/death of one person $25,000.00
Bodily injuries/death of multiple people $50,000.00
Property damage $25,000.00
Alaska Bodily injury liability $50,000 per person
$100,000 per accident
Property damage liability $25,000 minimum
Arizona Bodily injury liability Minimum $15,000 per person and $30,000 per accident
Property damage liability Minimum $10,000
Uninsured motorist and
bodily injuryMinimum $15,000 per person and $30,000 per accident
Uninsured motorist and
property damageMinimum $10,000
Arkansas Bodily injury $25,000 per person /$50,000 per accident
Property damage liability $25,000 per accident
California Bodily injury or death of one person in an accident caused by the insured vehicle's owner $15,000.00
Total bodily injury or death in an accident caused by the insured vehicle's owner $30,000.00
Property damage per accident caused by the owner of the insured vehicle $5,000.00
Colorado Death or injury of one person $25,000.00
Death or injury of more than one person $50,000.00
Property damage liability $15,000.00
Connecticut Bodily injury or death of one person in an accident caused by the insured vehicle's owner $25,000.00
Total bodily injury or death in an accident caused by the insured vehicle's owner $50,000.00
Property damage per accident caused by the insured vehicle's owner $25,000.00
Delaware Personal injury protection $15,000 per person
$30,000 per occurrence
$5,000 in funeral services coverage
Bodily injury or death of one person in an accident caused by the insured vehicle's owner $25,000.00
Total bodily injury or death in an accident caused by the insured vehicle's owner $50,000.00
Property damage per accident caused by the insured vehicle's owner $10,000.00
Florida Personal injury protection $10,000.00
Property damage liability $10,000.00
Georgia Bodily injury liability $25,000 per person and $50,000 per accident
Property damage liability $25,000 per accident
Uninsured motorist and bodily injury $25,000 per person and $50,000 per accident
Uninsured motorist and property damage $25,000 with a $250, $500, or $1,000 deductible
Hawaii Bodily injury liability $20,000 per person
$40,000 per accident
Property damage liability $10,000 minimum
Personal injury protection/"No-fault" coverage $10,000 minimum
Idaho Bodily injury or death per person resulting from an accident you cause $25,000.00
Total bodily injury or death liability resulting from an accident you cause $50,000.00
Property damage per accident resulting from a collision you cause $15,000.00
Illinois Bodily injuries/death of one person $25,000.00
Bodily injuries/death of multiple people $50,000.00
Property damage $20,000.00
Indiana Bodily injury liability $25,000 per person
$50,000 per accident
Uninsured motorist $25,000 per person
$50,000 per accident
Property damage liability $25,000 minimum
Underinsured motorist $50,000 minimum
Iowa Injuries of one person $20,000.00
Injuries of more than one person $40,000.00
Property damage liability $15,000.00
Kansas Injury or death per person in an accident you cause $25,000.00
Total injuries or the death per accident the insured you cause $50,000.00
Property damage in an accident caused by the insured driver $25,000.00
Uninsured/underinsured motorist $25,000 per person
$50,000 per accident
Kentucky Bodily injury liability for one person $25,000.00
Bodily injury liability total for an accident $50,000.00
Property damage liability $25,000.00
Personal injury protection $10,000.00
Louisiana Injury/death per person $15,000.00
Injuries or death per accident $30,000.00
Property damage per accident $25,000.00
Maine Death or injury per person $50,000.00
Total death or injury per accident $100,000.00
Property damage per accident $25,000.00
Uninsured/underinsured motorist N/A
MedPay N/A
Maryland Bodily injury liability of one person $30,000.00
Bodily injury liability two or more people $60,000.00
Property damage liability $15,000.00
Massachusetts Bodily injury liability $20,000 per one person
$40,000 total per accident
Property damage liability $5,000 per accident
No-fault personal injury $8,000.00
Uninsured motorist $20,000 per one person
$40,000 per accident
Michigan Personal injury protection $50,000 (for drivers enrolled in Medicaid)
$250,000 all others
Personal property protection $1 million
Bodily injury liability $50,000 per person
$100,000 per incident
Property damage liability $10,000 per incident
Minnesota Personal injury protection $40,000 per person per accident. ($20,000 for medical expenses and $20,000 for non-medical expenses)
Bodily injury liability $30,000 per person
$60,000 for two or more people (per incident)
Property damage liability $10,000.00
Uninsured motorist
Bodily injury$25,000 per person
$50,000 for two or more people (per incident)
Underinsured motorist
Bodily injury$25,000 per person
$50,000 for two or more people (per incident)
Mississippi Bodily injury per person $20,000.00
Total bodily injury per accident $40,000.00
Property damage per accident $10,000.00
Missouri Injury or death per person in an accident you cause $25,000.00
Total injuries or death per accident you cause $50,000.00
Property damage per accident you cause $10,000.00
Uninsured motorist $25,000 in bodily injury per person
$50,000 in bodily injury per accident
Montana Injury or death of one person in an accident you cause $25,000.00
Total injuries or death of more than one person in an accident you cause $50,000.00
Property damage in an accident you cause $20,000.00
Nebraska Injury or death per person in an accident you cause $25,000.00
Total injuries or death per accident you cause $50,000.00
Property damage per accident you cause $25,000.00
Uninsured/underinsured motorist $25,000 to cover your own injury per person
$50,000 to cover total injuries or death per accident
Nevada Bodily injury or death of any individual resulting from an accident the vehicle owner/driver causes $25,000 per person
Total bodily injury or death liability resulting from an accident the vehicle owner/driver causes $50,000 per accident
Total property damage resulting from an accident the vehicle owner/driver causes $20,000 per accident
New Hampshire
(Drivers aren't technically required to carry insurance)Bodily injury or death of one person in an accident caused by the insured vehicle's owner $25,000.00
Total bodily injury or death in an accident caused by the owner of the insured vehicle $50,000.00
Property damage per accident caused by the owner of the insured vehicle $25,000.00
MedPay $1,000 to cover medical expenses after a crash
Uninsured/underinsured motorist Same coverage amount as liability
New Jersey Bodily injury None required, but optional starting at a minimum of $10,000 per person and $10,000 per accident
Property damage liability $5,000.00
Personal injury protection $15,000 per person, per accident
Up to $250,000 for brain and spinal cord injuries
New Mexico Injuries to one person in an accident $25,000.00
Injuries to all people in an accident $50,000.00
Property damages caused by an accident $10,000.00
New York Personal injury liability $25,000 per person with a maximum of $50,000 per accident
Liability coverage for death $50,000 per person with a maximum of $100,000 per accident
Property damage liability $10,000 per accident
Personal injury protection $50,000 per person
Uninsured motorists $25,000 per person with a maximum of $50,000 per accident
North Carolina Injuries to one person $30,000.00
Injuries to more than one person $60,000.00
Property damage liability $25,000.00
North Dakota Bodily injury liability $25,000 per person
$50,000 per accident
Property damage liability $25,000.00
Ohio Bodily injury liability $25,000 per person
$50,000 per incident
Property damage liability $25,000.00
Oklahoma Injury or death of one person $25,000.00
Injury or death of more than one person $50,000.00
Damage to personal property $25,000.00
Oregon Injuries of one person $25,000.00
Injuries of more than one person $50,000.00
Property damages $20,000.00
Personal injury protection (also known as Medical Payments/MedPay) $15,000.00
Uninsured motor $25,000 per person and $50,000 per total accident
Pennsylvania Medical benefits coverage (also known as first-party benefits), a form of personal injury protection, to cover medical expenses for yourself or others, regardless of fault $5,000.00
Liability insurance to cover medical costs for injuries to one person, capped at $30,000 per accident $15,000.00
Property damage if you’re at fault $5,000.00
Rhode Island Bodily injury coverage to cover the injuries of one person $25,000.00
Injuries of more than one person $50,000.00
Property damaged in a car accident $25,000.00
Uninsured/underinsured motorist $25,000.00
South Carolina Bodily injury or death of one person in an accident caused by the insured vehicle's owner or driver $25,000.00
Total bodily injury or death liability in an accident caused by the insured vehicle's owner or driver $50,000.00
Property damage per accident caused by the insured vehicle's owner or driver $25,000.00
South Dakota Bodily injury liability coverage per person to cover the costs associated with the injury or death of an individual resulting from an accident you cause $25,000.00
Bodily injury liability coverage per accident to cover the costs associated with the total bodily injury or death liability resulting from an accident you cause $50,000.00
Property damage liability coverage to cover the costs associated with property damages incurred by another individual or individuals resulting from an accident you cause $25,000.00
Uninsured/underinsured motorist Same coverage amount as liability
Tennessee Bodily injury or death of an individual resulting from an accident you cause $25,000.00
Total bodily injury or death liability resulting from an accident you cause $50,000.00
Property damage liability coverage to cover the total costs of another party or party’s property damage resulting from an accident you cause $15,000.00
Texas Bodily injury liability $30,000 per person
$60,000 per accident
Property damage liability $25,000.00
Utah Injury or death to any one person in an accident $26,000.00
Injury or death to two or more people in an accident $65,000.00
Damage to property in an accident $15,000.00
Personal injury protection coverage per person $3,000.00
Vermont Death or injury of one person $25,000.00
Death or injury of more than one person $50,000.00
Property damage liability $10,000.00
Virgina Death or injury of one person $25,000.00
Death or injury of more than one person $50,000.00
Property damage liability $20,000.00
Washington Bodily injury liability $25,000 per one person
$50,000 total per accident
Property damage liability $10,000 per accident
West Virgina Bodily injury or death of one person in an accident caused by the insured vehicle's owner $25,000.00
Total bodily injury or death in an accident caused by the insured vehicle's owner $50,000.00
Property damage per accident caused by the insured vehicle's owner $20,000.00
Wisconsin Bodily injury or death of one person in an accident caused by the insured vehicle's owner $25,000.00
Total bodily injury or death in an accident caused by the insured vehicle's owner $50,000.00
Property damage per accident caused by the insured vehicle's owner $10,000.00
Injury to one person for both uninsured/underinsured motorists $25,000.00
Injury to more than one person for both uninsured/underinsured motorists $50,000.00
Wyoming Bodily injuries/death of one person $25,000.00
Bodily injuries/death of multiple people $50,000.00
Property damage $20,000.00
As you can see, most states have requirements for bodily injury and property damage coverage. Some states also include additional requirements for uninsured/underinsured motorists, personal injury protection, and medical payments.
Should I get a basic car insurance policy?
If you’ve paid off your vehicle and don’t have to carry full coverage to meet a lender’s requirement, you can get away with a basic auto insurance policy.
Before you decide to go with a basic policy, consider how much you could pay out of pocket if you were to cause an accident.
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What additional insurance coverage should I consider?
For adequate protection on the road, you may want to consider the following auto insurance coverage options:
- Collision car insurance
- Comprehensive car insurance
- Uninsured/underinsured motorist coverage
- Medical payments
- Personal injury protection (PIP) coverage
- GAP insurance
- Roadside assistance
There is also a difference in the average car insurance rates by age and gender as well as car type and many other factors.
Read more:
Case Studies: Pros and Cons of Basic Car Insurance Coverage
Case Study 1: Sarah’s Experience With Basic Car Insurance
Sarah, a young driver with a limited budget, opted for a basic car insurance policy to save money. While the policy provided her with the necessary liability coverage, it didn’t protect her own vehicle. Unfortunately, Sarah got into an accident, resulting in significant damage to her car. Without comprehensive or collision coverage, she had to bear the repair costs on her own.
Case Study 2: Mark’s Decision to Upgrade from Basic Coverage
Mark, an experienced driver, initially had a basic car insurance policy. However, after researching the potential risks and assessing his financial situation, he decided to upgrade to a policy that offered comprehensive and collision coverage. This additional coverage gave him peace of mind knowing that his car would be protected in various scenarios, including accidents, theft, and natural disasters.
Case Study 3: Maria’s Cost-Effective Approach
Maria, a frugal driver, carefully evaluated her options and decided that a basic car insurance policy suited her needs. She drove an older vehicle with a low market value and had sufficient savings to cover any potential repairs or damages. By choosing a basic policy, Maria saved money on premiums while still meeting the legal requirements for auto insurance.
Basic Car Insurance: The Bottom Line
If it’s all you can afford, there is nothing wrong with only purchasing a basic auto insurance policy. This insurance type is all you need to drive legally, and it will help cover damage to other people and their vehicles if you cause an accident.
However, if you can afford additional auto insurance coverage, consider adding comprehensive and collision coverage to your policy. In addition, you may want to add other coverages depending on your specific needs.
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Frequently Asked Questions
What is basic car insurance coverage?
Basic car insurance coverage typically refers to the minimum legal requirement for car insurance in a particular jurisdiction. It generally includes liability coverage, which pays for the damages you cause to others in an accident, and may also include personal injury protection (PIP) or medical payments coverage.
Is basic car insurance coverage a smart choice?
The decision to choose basic car insurance coverage depends on several factors. While it may meet the legal requirements and be a cost-effective option, it may not provide sufficient coverage for all situations. It’s important to weigh the pros and cons before making a decision.
What are the pros of basic car insurance coverage?
Some advantages of basic car insurance coverage include:
- Cost-effective: Basic coverage is usually cheaper than comprehensive coverage.
- Legal compliance: It fulfills the minimum legal requirements in your jurisdiction.
- Adequate for some drivers: If you have an older car or a limited budget, basic coverage may be sufficient.
What are the cons of basic car insurance coverage?
Some disadvantages of basic car insurance coverage include:
- Limited coverage: Basic coverage may not provide enough protection for all types of accidents or damages.
- Lack of comprehensive protection: It typically does not cover theft, vandalism, or damage from natural disasters.
- Personal expenses: In the event of an accident, you may have to pay out-of-pocket for repairs or medical costs not covered by basic insurance.
When should I consider more than basic car insurance coverage?
You may want to consider additional coverage beyond the basics in the following situations:
- New or expensive car: Comprehensive coverage can help protect your investment.
- Personal assets at risk: If you have significant savings, a house, or other valuable assets, higher coverage limits can protect you from liability claims.
- Concerns about uninsured/underinsured drivers: Additional coverage can provide financial protection if you’re involved in an accident with a driver who lacks adequate insurance.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.