If it is time for you to renew your auto insurance policy, you need to seek out a policy that at least fulfills the minimum coverage auto insurance in the state where the car is registered. Continue reading below to find out what these minimum requirements are, and how you can get the cheapest rates for minimum coverage insurance.
To be within the law of most states, car insurance with minimum liability coverage in mandatory. Minimum coverage required by law, however, usually falls short of what an accident can cost. Mandated minimum liability auto insurance requirements many times are not enough to cover an accident with another vehicle that is a luxury vehicle or a vehicle carrying more than one person, should there be injuries.
What is known as the “100/300 rule,” is the amount of coverage that is recommended by the Insurance Information Institute (IIS). This simply means that a liability auto insurance policy should cover at least $100,000 of bodily injury protection for each person in an accident and $300,000 per accident. The IIS recommends all drivers have at least 100/300 coverage before getting behind the wheel of a vehicle. What is recommended and what is required by law, however, are two different stories.
Whatever a driver decides, it is most important that the minimum coverage auto insurance ensures that the car is covered and the consumer is driving within the legal limits for drivers in their state. The states vary in their limits for the type of minimum coverage that must be held at the policy coverage limits.
Minimum Auto Insurance Requirements
> Click here to view minimum auto insurance coverage requirements in your state.
Drivers must carry three liability insurance policies: bodily injury for one person, bodily injury for two or more persons and property damage liability policy. To give an example of this, 25,000, 50,000 and 25,000 are the limits for each in Georgia, meaning the first person, multiple persons and property damage for each respectively. These limits are the minimum legal amounts to have coverage. However, if a driver damages body and property beyond these limits, they are still responsible for the difference in amounts, beyond the limit.
The lowest car insurance minimums in the United States are in the state of Mississippi, with driver’s policy parameters of 10,000 for a single injury party, $20,000 for multiple-party claims and $5000 for property damage. These are legal limits for the policy parts and in no way limit the driver to purchase more insurance of each type to ensure they are properly covered. Several factors can have effects on the property and coverage type and the price of the policy.
How Car Insurance Rates Are Calculated
Rates are determined by the types of answers provided in a simple questionnaire given by the insurance providers who will be competing for your business. The answers given will factor into how the individual insurance premium is calculated. Your driving record is very important. The types of questions that will need answering are: whether accidents have been your fault (if any) and if there are any speeding tickets. The vehicle history and use of the vehicle will also need to be provided as well as information about where you live and where the vehicle is kept. In other words, is there high crime and car theft or vandalism in the neighborhood? Credit score will also be a part of the questions.
The low risk driver will usually pay less for their coverage. This risk is based on their driving record and the area in which they will be driving the car. Companies consider the rates of accidents as a part of this determination and the experience level of the driver. Those who have less experience and live in an area with a high accident rate will pay more. Drivers must also be aware that they can shop for insurance for lower rates but only in the state where the car is registered. If there are lower rates in Florida and the car is registered in Washington D.C., the driver can only purchase insurance in Washington D.C.
How To Find Cheap Bare Minimum Coverage Car Insurance
Most drivers are in favor of finding cheap minimum coverage auto insurance, yet continue to pay higher premiums, putting off the change for another time. Depending on what state a driver lives in, rates can be as low as $15 dollars per month and as high as $ 50 dollars per month. By simply entering a zip code in the text box above, drivers can find out what is the cheapest minimum liability coverage available in their state. Quotes from a number of area insurance providers can be obtained by answering some basic questions.
Many people worry that some of these basic questions will involve giving a social security number. If this is the case, the insurer will most likely use that information to obtain a credit score and base the premium on that score. This will not be necessary if the right insurance quote web site is used (including 4AutoInsuranceQuote.com). There is cheap minimum liability coverage available that is not based on that type of information.
To find cheap rates for minimum coverage auto insurance in your state, please scroll back to the top of this page and enter your zip code. We will match you with auto insurance providers who will provide you with quotes for minimum coverage in the area you live in.