What is The Minimum Auto Insurance Coverage That I have to Sign Up For?

Money doesn’t grow on trees, and most people aren’t made of money. Because of this, costs need to be cut. Sometimes, even insurance expenses are being reduced or even by eliminated by some people who need the cash for something else. Driving without car insurance, however, can be a very dangerous undertaking.  One small accident without insurance can financially damage you for a long time.

As such, we recommend that you search around for inexpensive, bare-minmum car insurance coverage.  It is always a bad idea to drive without any insurance at all. Signing up for the cheapest possible auto insurance coverage until times get better is the always most intelligent course of action.

But what is the minimum amount of auto insurance that is allowed on the roads?

First of all, the minimum coverage for auto insurance varies from state to state. Most of the states require that you carry only liability insurance while a few states also require that a person mandatorily carry personal injury protection as well as uninsured motorist coverage. You will have to check with your state’s DMV or Department of Motor Vehicles to find out the exact requirements that are specific to your state of residence.

minmum coverage auto insurance required by law

Which Types Of Auto Insurance Do you Need?

Some types of insurance are required by law, while others are simply recommended. Here is a more detailed explanation about the various types of coverage offered by auto insurance companies.

Liability Coverage

minimum auto insurance

What is the minimum auto insurance coverage required by law?

Liability coverage will cover expenses that are related to claims made by third parties against you for bodily injuries, death or even property damage. This might also apply to expenses payable to people whom you might have permitted to drive your car when you signed up for the auto insurance policy. Many insurance companies will break out this coverage into three parts. You might get a quote that says 10/20/15 which will essentially mean that the insurance company will pay up to $10,000 for one person injured in an accident, a maximum of $25,000 for all people injured in an accident and a maximum of $15,000 for expenses that will be related to property damage. The minimum coverage for each of these clauses will vary from state to state and it is best that you check with your DMV as suggested earlier.

Personal Injury Protection Coverage

Personal injury protection coverage, also known as PIP, will cover you for medical expenses you and the passengers of your car sustain in a car accident. Only some states require that you insure yourself for personal injury protection, but it is very important for you to have this kind of protection.  As we all know, medical bills can really pile up.  Without it, you might be left not only physically crippled, but financially crippled as well.

Uninsured Motorist Coverage

Uninsured motorist coverage will protect you from accidents caused by drivers who are either not insured or those who are too young to procure insurance.  According to USA Today, one in seven drivers in the United States drives illegally without car insurance.  If you get into an accident with one of these fools, you will need to pay for the expenses out of pocket.  If you have uninsured, or under-insured motorist coverage, however, you will be covered.

What Is The Minimum Auto Insurance That Is Required?

Your best information source when it comes to finding the minimum insurance coverage required in your state is the website of the Insurance Information Institute, III.org. You will also be able to find this information at online sites that will allow you to compare auto insurance quotes from various companies. They will typically be able to provide information related to state minimum requirements in addition to the comparative data on insurance providers.

On 4AutoInsuranceQuote.com, we also have resources that will help you determine how much auto insurance you are legally required to have in your state. For this information, make sure to check out the following pages of our site:

Be the first to write a comment.

Your feedback