What Is the Cheapest Car Insurance You Can Get?

Last Updated on February 5, 2026

If you want to drive legally on public roads in the U.S., you usually need car insurance (or another form of “financial responsibility”). Most states require at least a minimum amount of coverage, while a small handful have special rules—like New Hampshire, where insurance isn’t mandatory for every driver but you can still be held financially responsible after a crash.

So what’s the cheapest car insurance you can get? In most states, it’s a policy that meets your state’s minimum legal requirements—typically liability coverage (coverage that pays for injuries and damage you cause to others).

That said, “cheapest” depends on your situation. If you finance or lease your vehicle, your lender will usually require more than the state minimum—often what people call full coverage (liability plus comprehensive and collision). And if you drive rarely, a usage-based program may beat a bare-bones policy price-wise.

Below, we’ll break down the bare minimum insurance you’re legally required to have in most states—and how to compare truly cheap quotes without buying a policy that leaves you exposed.

In most states, the cheapest legal car insurance is a liability-only policy that meets your state’s minimum required limits.
Minimum coverage requirements vary widely, and some states also require PIP (no-fault) and/or uninsured motorist coverage.
If you finance or lease your car, you’ll typically need more than the state minimum—often requiring comprehensive and collision coverage.
State-minimum policies can leave you exposed in serious crashes, so it’s often worth pricing slightly higher liability limits and comparing quotes annually.

Table Of Contents

The lowest legal car insurance coverage (in most states)
How to compare the cheapest car insurance quotes
Other minimum legal requirements you might see
Why you should consider more than the cheapest legal car insurance
FAQs on the Cheapest Car Insurance

The lowest legal car insurance coverage (in most states)

In most states, the legal minimum is some level of liability insurance. States generally don’t require you to insure damage to your own car. Instead, they require you to carry liability coverage to pay for injuries and property damage you cause to other people.

Liability coverage is usually split into three limits (often shown as three numbers):

Bodily injury liability per person
Bodily injury liability per accident
Property damage liability per accident

The cheapest legal policy you can buy is the one that meets your state’s minimum limit in each required category. But minimums vary a lot—and some states require coverages beyond basic liability.

Examples of minimum coverage requirements

Here are a few real-world examples so you can see how different states structure “minimum” coverage:

California: minimum liability limits are now 30/60/15 (that’s $30,000 per person / $60,000 per accident for injuries, and $15,000 per accident for property damage). This is higher than California’s old minimums.
New York: minimum liability is commonly described as 25/50/10, and New York also requires no-fault/PIP and uninsured motorist coverage. New York additionally has higher required liability limits when an accident results in death.
Florida: Florida is unusual. The minimum is generally $10,000 PIP (personal injury protection) and $10,000 property damage liability—and Florida does not require bodily injury liability for most drivers as a condition of registration.
North Carolina: as of mid-2025, minimum liability limits increased to 50/100/50 (and required uninsured/underinsured motorist limits generally increased as well).

Some states also allow alternatives to a traditional insurance policy (like a surety bond or cash deposit), and some allow specialty policies like broad form coverage. Broad form policies can be cheap, but they’re very limited—usually covering only one named driver at the minimum limits and not necessarily covering all vehicles or drivers in a household.

If you want a quick, state-by-state list of minimum requirements (including states with extra requirements like uninsured motorist or PIP), NerdWallet maintains an updated guide here: Minimum car insurance requirements by state.

How to compare the cheapest car insurance quotes

When you’re comparing car insurance quotes, you’ll often see limits written like this:

100/300/50

That means $100,000 bodily injury per person, $300,000 bodily injury per accident, and $50,000 property damage per accident. Many drivers consider limits like that closer to a “safer” liability setup than the bare minimum, even if it’s not the same thing as full coverage.

To find the cheapest policy that still makes sense, compare quotes using the same:

Coverage limits (make sure the limits match across quotes)
Deductibles (for comprehensive/collision, if you’re buying them)
Driver/vehicle details (same address, mileage estimate, vehicle trim, etc.)
Discounts (bundle, safe driver, good student, telematics/usage-based, paid-in-full)

Other minimum legal requirements you might see

Many states require more than basic bodily injury and property damage liability. Some common add-ons include:

Personal Injury Protection (PIP): Some states require PIP (often called “no-fault” coverage). PIP helps pay for medical expenses for you and your passengers after an accident, regardless of fault, and it may also cover other losses depending on the state. PIP is typically associated with no-fault states.

Medical Payments (MedPay): MedPay is similar to PIP in that it can help with medical bills after an accident. Unlike PIP, MedPay generally does not cover lost wages.

Uninsured / underinsured motorist (UM/UIM): Many states require uninsured motorist coverage, and some require underinsured motorist coverage. These protections can help if you’re hit by someone with no insurance—or not enough insurance. Learn more about whether you need uninsured motorist coverage.

Why you should consider more than the cheapest legal car insurance

Carrying the legal minimum is often a risky move. Liability claims can add up fast—especially if multiple people are injured, if there’s a newer vehicle involved, or if you damage property.

For example, imagine you hit a van with multiple passengers. Even if your policy has $15,000 (or $25,000) of bodily injury coverage per person, your policy might cap total injury payments at $30,000 (or $50,000) per accident. A single ER visit can be expensive—so you could exceed your limits and end up personally responsible for the rest.

That’s one reason many high net worth individuals carry higher liability limits and add umbrella insurance for extra protection.

Bottom line: the “cheapest” car insurance you can get is usually your state’s minimum coverage—but the smartest cheap policy is one you can afford and that won’t fall apart financially after a serious accident.

FAQs on the Cheapest Car Insurance

What is the cheapest car insurance you can legally buy?

In most states, it’s a policy that meets your state’s minimum required liability limits (often shown as three numbers like 25/50/25). The exact cheapest legal coverage depends on your state’s rules and any extra required coverages like uninsured motorist or PIP.

Is the state minimum the same as “full coverage”?

No. State minimum coverage usually refers to liability (and sometimes other required coverages like PIP or uninsured motorist). “Full coverage” is a common term for adding comprehensive and collision coverage to liability—typically required if you have a loan or lease.

Why is Florida’s minimum coverage different from other states?

Florida generally requires PIP and property damage liability for registration, but it typically does not require bodily injury liability for most drivers as a condition of registration. That can make the cheapest legal policy look very different from states that require bodily injury liability limits.

Can I lower my premium by dropping comprehensive and collision?

Sometimes—especially if your car is older and fully paid off. But if you finance or lease, your lender usually requires comprehensive and collision. Even when it’s optional, dropping coverage means you’ll pay out of pocket if your car is stolen, vandalized, or damaged in a crash you cause.

What’s the fastest way to find the cheapest quote in my state?

Shop multiple insurers with the same coverage limits, deductibles, and driver details. Then compare the total premium and the discounts offered (bundle, safe driver, good student, paid-in-full, usage-based/telematics). Shopping at least once per year is one of the most reliable ways to keep costs down.

Is minimum coverage a bad idea?

It can be risky. Minimum limits can be too low for modern medical bills and vehicle repair costs, so a serious accident could leave you personally responsible for damages above your policy limits. Many drivers choose higher liability limits because the price difference is sometimes smaller than expected.

Are there programs for low-income drivers who can’t afford standard insurance?

In some states, yes. For example, California offers a state-sponsored low-cost auto insurance program for eligible drivers. If affordability is a concern, ask local agents about state programs, assigned-risk plans, and discount options.

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