3.1 Idaho Auto Insurance Requirements

Idaho law requires all motor vehicle owners to maintain minimum liability insurance coverage. Understanding these requirements is essential for Idaho P&C insurance producers and is heavily tested on the state exam.

Minimum Liability Requirements: 25/50/15

Idaho's mandatory minimum liability limits are among the more modest in the nation:

Required Limits

How Split Limits Work

Example Scenario: A driver causes an accident injuring three people:

• Person A: $30,000 in injuries
• Person B: $20,000 in injuries
• Person C: $15,000 in injuries
• Total: $65,000

With 25/50/15 coverage:

• Person A receives: $25,000 (per-person limit)
• Person B receives: $20,000 (full amount, under per-person limit)
• Person C receives: $5,000 (remainder of $50,000 per-accident limit)
• Insured is personally liable for: $15,000 (excess over policy limits)

Exam Tip: Memorize Idaho's minimum limits: 25/50/15. This is one of the most frequently tested items on the Idaho P&C exam. The mnemonic "25-50-15" rolls off the tongue.

Idaho's Tort System

At-Fault Insurance System

Idaho uses a traditional tort (at-fault) system for auto accidents:

How It Works:

1. Determine who caused the accident (at-fault driver)
2. At-fault driver's insurance pays damages
3. Injured parties can sue if damages exceed policy limits
4. Comparative negligence reduces recovery proportionally

Comparative Negligence

Idaho follows a modified comparative negligence rule:

Example:

• You suffer $50,000 in damages
• You are found 30% at fault
• Your recovery: $50,000 - 30% = $35,000

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Idaho UM/UIM Requirements

Idaho law requires insurers to offer UM/UIM coverage, but policyholders may decline:

UM Coverage

Uninsured Motorist (UM) coverage protects you when:

• At-fault driver has no insurance
• At-fault driver is a hit-and-run (physical contact typically required)
• At-fault driver's insurer is insolvent

UIM Coverage

Underinsured Motorist (UIM) coverage protects you when:

• At-fault driver has insurance
• Their limits are insufficient to cover your damages
• Pays the difference up to your UIM limit

Exam Tip: Idaho requires UM/UIM to be OFFERED but allows rejection IN WRITING. This is different from states where UM/UIM is mandatory with no rejection option.

Proof of Insurance Requirements

What Idaho Law Requires

All drivers must carry proof of insurance and present it:

• When requested by law enforcement
• At time of vehicle registration
• After an accident

Acceptable Proof

• Insurance ID card (paper or electronic)
• Insurance policy declarations page
• Other evidence of valid insurance

Electronic Proof: Idaho accepts proof of insurance displayed on a smartphone or electronic device.

Vehicle Registration

Idaho's continuous insurance verification program:

• DMV verifies insurance at registration
• Lapse in coverage can result in suspension
• Reinstatement requires proof of insurance

Penalties for No Insurance

First Offense

Subsequent Offenses

SR-22 Certificate

What Is SR-22?

• Certificate of Financial Responsibility
• Filed by insurer with Idaho DMV
• Proves minimum liability coverage
• Typically required for 3 years

When Required:

• Driving without insurance conviction
• DUI/DWI conviction
• Major traffic violations
• At-fault accidents without insurance
• License reinstatement after suspension

Personal Auto Policy (PAP) Coverages

Part A - Liability Coverage

Bodily Injury Liability:

• Injuries you cause to others
• Legal defense costs
• Settlement payments
• Medical expenses of others

Property Damage Liability:

• Damage you cause to others' property
• Vehicles, buildings, fences, etc.
• Legal defense included

Part B - Medical Payments (Med Pay)

No-Fault Medical Coverage:

• Pays regardless of fault
• You and your passengers
• Covers medical expenses
• Typical limits: $1,000 - $10,000

What's Covered:

• Hospital and doctor bills
• X-rays and diagnostic testing
• Surgery and treatment
• Dental treatment from accident
• Ambulance and emergency services

Part C - Uninsured/Underinsured Motorist

As discussed above:

• UM covers at-fault uninsured drivers
• UIM covers at-fault underinsured drivers
• Must be offered in Idaho
• Can be rejected in writing

Part D - Physical Damage

Collision Coverage:

• Damage from collision with object or vehicle
• Your vehicle repairs or replacement
• Regardless of fault
• Subject to deductible

Comprehensive (Other Than Collision):

• Non-collision losses
• Theft, vandalism, fire
• Weather damage (hail, flood)
• Glass breakage
• Animal strikes (deer common in Idaho)
• Subject to deductible

Additional PAP Coverages

Idaho-Specific Auto Considerations

Wildlife Collisions

Idaho has significant wildlife collision exposure:

• Deer, elk, and moose crossings
• Covered under Comprehensive (not Collision)
• No fault assigned to driver
• No deductible in some policies for animal strikes

High-Risk Areas:

• Interstate 84 corridors
• Highway 55 (Boise to McCall)
• Northern Idaho wilderness highways
• Early morning and dusk hours highest risk

Winter Driving Conditions

Coverage Considerations:

• Collision covers accident damage regardless of road conditions
• Comprehensive covers damage from falling ice or snow
• Towing coverage important in remote areas
• Consider roadside assistance

Rural and Remote Areas

Challenges:

• Long response times for accidents
• Greater distances to repair facilities
• Towing costs can be substantial
• Consider higher rental reimbursement limits

Personal Auto Policy Exclusions

What's NOT Covered

Vehicle Exclusions:

• Vehicles with fewer than 4 wheels
• Vehicles used for hire (taxi, rideshare without endorsement)
• Vehicles used for business (without endorsement)
• Racing or speed contests
• Intentional damage

Driver Exclusions:

• Excluded drivers named on policy
• Unlicensed drivers
• Drivers using vehicle without permission

Other Exclusions:

• War and military action
• Nuclear hazard
• Wear and tear/mechanical breakdown
• Personal belongings in vehicle (covered by homeowners)

Rating Factors for Idaho Auto Insurance

Factors Insurers May Use

Common Discounts

• Multi-car discount
• Multi-policy discount
• Good driver discount
• Good student discount
• Defensive driving course
• Anti-theft device discount
• Low mileage discount
• Mature driver discount