State Auto Insurance Laws

Each state in the United States has its own policies and guidelines regulating the sale of auto insurance to its residents. As a result, insurance laws can vary significantly between states. Only two states do not require drivers to purchase any form of auto insurance, New Hampshire and Virginia. The remaining forty-eight states and the District of Columbia require at least liability coverage with established minimum amounts. Typical minimum coverage amount requirements would be $25,000 per person, $50,000 per accident for bodily injury liability and $10,000 for property damage liability.

Each insuring company that is authorized to sell in the individual state must be approved by the state insurance commissioners' office. Insuring companies must be able to prove they have the financial strength to pay claims and meet all regulatory requirements. If a licensed insurer is in gross violation of state laws, they may have their license to sell automobile insurance revoked.

Complaints can be filed against insurers through your state insurance commissioners' website or filling out a written form obtained from the commissioners' office. Many state commissioners' websites publish "consumer complaint" ratios for all insurers that sell policies in their state.