May, 2006
Financial Responsibility and
Compulsory Insurance Laws
Summary: The table that follows displays the minimum financial responsibility or compulsory liability insurance limits for all states, the District of Columbia, Puerto Rico, and the Canadian provinces.
Topics covered:
Split or single limits
Required limits, by state
The laws of all states express the requirement in terms of split limits. For example, if the chart shows “25/50/10,” the law requires that the policy provide at least $25,000 for bodily injury to each person, $50,000 for all bodily injury, and $10,000 for property damage for each accident.
The insurance laws of some states also state the requirement in terms of a combined single limit. For example, if the chart shows “15/30/10 or 40,” the law provides that a policy with a combined single limit of at least $40,000 will also satisfy the requirement. A combined single limit of $40,000 means that the insurance will pay up to $40,000 for all bodily injury and property damage arising out of each accident. The required limits for the Canadian provinces are expressed as combined single limits only.
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