By: Janet L. Kaminski Leduc, Senior Legislative Attorney
You asked which states require people to purchase (1) auto liability insurance, (2) uninsured motorist coverage, and (3) underinsured motorist coverage. In states that require auto liability insurance, you want to know the minimum levels of insurance required.
Information for this report comes from the Insurance Information Institute ' s June 2013 report titled Compulsory Auto/Uninsured Motorists ( http://www.iii.org/issues_updates/compulsory-auto-uninsured-motorists.html ).
Auto liability insurance is mandatory in 49 states and the District of Columbia. New Hampshire, the only state that does not require auto liability insurance, requires drivers to show that they are able to provide sufficient funds in the case of an at-fault accident (i.e. financial responsibility). Liability insurance generally pays another driver ' s medical, vehicle repair, and other costs when the policyholder is the at-fault driver in an accident. It covers (1) bodily injury (BI) per person and per accident and
(2) property damage (PD). (Table 1 below lists the minimum liability limits required in each jurisdiction.)
Twenty two jurisdictions require uninsured motorist coverage (UM): Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin. UM compensates policyholders when another driver who is at fault for the accident (1) has no auto liability insurance or (2) is a hit-and-run driver.
Fourteen states require underinsured motorist coverage (UIM): Connecticut, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oregon, South Dakota, Vermont, Virginia, and Wisconsin. UIM compensates a policyholder when the at-fault driver has an insufficient amount of auto liability insurance.
For a more detailed look at Connecticut ' s auto insurance requirements, see OLR Research Report 2008-R-0493 .
Table 1: Auto Insurance Requirements by State, June 2013