Idaho Auto Insurance Laws

Auto insurers providing coverage in Idaho must sell policies with at least 25/50/15 liability coverage. This mean that an Idaho insurance policy requires $25,000 to cover the injury or death of one person, $50,000 to cover multiple injuries and deaths and $15,000 to cover property damage in an accident. Liability coverage protects the state and accident victims from undue financial harm.

Idaho does not require personal injury protection (PIP) in auto insurance policies. PIP coverage has been employed by an increasing number of states to reimburse medical and legal bills and wages lost while recovering from an auto-related injury. The lack of a PIP requirement in Idaho does not mean that drivers are left open to financial ruin associated with an automotive accident. In fact, Idaho's optional PIP policy is often a nonfactor for drivers covered by adequate health and life insurance policies.

Uninsured motorist coverage is not required under Idaho's auto insurance laws. In other states, uninsured motorist coverage protects an insured driver and dependents from financial harm when involved in accidents with uninsured drivers. Idaho has bypassed this coverage due to its status as a tort liability state, as well as the redundancy of uninsured motorist insurance for drivers with health insurance.

Idaho is among 26 states that do not have a no-fault policy when adjudicating insurance cases in court. No-fault states like New York, Florida and Wisconsin require insurers to pay out benefits to insured drivers without regard to the instigator of an accident. The flip side of a no-fault policy is that accident victims are prevented from unlimited financial restitution from drivers responsible for accidents. Idaho is a tort liability state that does not set a financial limit on lawsuits brought by victims against the instigating party.

Idaho residents do not need to show proof of insurance when registering their cars and trucks with the state's Division of Motor Vehicles. Every Idaho driver should ask for proof of insurance anyway because state patrol officers will ask for this document during accidents and traffic stops. If you do not have proof of insurance during a traffic stop, you must carry proof of financial responsibility for at least one year. This proof requirement increases to three years during the second traffic stop without proof of insurance. The most common proof of financial responsibility used in Idaho and other states with similar policies is a bond that covers minimal liability requirements.