State law requires all drivers to have car insurance, including a minimum of 25/50/25 insurance. That means their policies must have liability limits of at least:
- $25,000 for injuries caused to a single person
- $50,000 for bodily injury for all injured parties in the accident
- $25,000 for property damage.
All drivers are also required to carry personal injury protection (PIP) insurance, which covers the insured motorists as well as passengers at the time of crash. The minimum requirements are:
- $4,500 per injured person for medical expenses
- Up to $900 per month for disability or loss of income for up to one year
- Up to $25/day for in-home services
- $2,000 for funeral, burial and cremation expenses
- $4,500 for rehabilitation expenses
- Up to $900/month for one year for loss of income for survivors of people killed in auto accidents.
In addition, drivers are required to carry uninsured and underinsured coverage of at least $25,000 per person and $50,000 per accident. This applies if you are injured in an accident with a driver who does not have insurance, does not have enough insurance to cover your damages, or if you are hurt in a crash with a hit-and-run driver who is never identified.
However, damages suffered in a car accident can easily exceed the minimum policy limits. That’s why it is recommended that all drivers buy insurance coverage with higher liability limits.
There is also optional coverage available. This includes comprehensive, which pays for vehicle damage caused by vandalism or other non-accident causes, and collision, which pays for vehicle damage that occurs as the result of an accident.