UPDATED: Mar 13, 2020
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Last Updated: December 12, 2018
If it is time for you to renew your auto insurance, you need to seek out a policy that at least fulfills the minimum coverage auto insurance requirements in the state where the car is registered. While these bare minimum policies may be cheap, they might not keep you covered in all situations. Continue reading below to find out more about these minimum coverage policies, what the minimum requirements are in your state, and how you can go about finding the cheapest minimum coverage car insurance.
The Importance Of Maintaining Minimum Coverage
To be within the law of almost every states, car insurance with minimum liability coverage is required in order to drive. The minimum coverage amount required by law, however, usually falls short of what an accident can cost. Cheap insurance policies with only the minimum coverage limits often times are not enough to cover an accident with 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 (total). The IIS recommends all drivers have at least 100/300 coverage before getting behind the wheel of a vehicle in America. What is recommended and what is required by law, however, are two different stories.
Whatever a driver decides, it is of utmost importance that their auto insurance policy ensures their car is covered and that they are within the legal limits of their state.
Minimum Auto Insurance Requirements By State
Drivers must carry three types of liability insurance: bodily injury insurance (BIL) per person in an accident, bodily injury insurance total per accident, and property damage liability insurance (PDL). To give an example of this, $25,000, $50,000 and $25,000 are the limits for each in Georgia (written 25/50/25). This means that each person injured in the accident would receive a maximum of $25,000 in BIL coverage. There would also be a maximum of $50,000 paid out by BIL for the whole accident and a maximum of $25,000 in PDL for the accident.
These limits are the minimum legal amounts required by law. While these policies may be cheap, if a driver purchases a bare minimum policy and causes bodily and property damage beyond these limits, they will still be legally responsible for the difference in amounts.
The lowest car insurance minimums in the United States are in the state of Florida, with driver’s policy minimums of $10,000 BIL per single injured party, $20,000 BIL per accident, and $10,000 PDL (10/20/10). The states that require the most amount of minimum coverage are Alaska and Maine, with legal requirements set at 50/100/25.
Each state has different auto insurance requirements. It’s extremely important to maintain these minimum coverage amounts in order to remain on the right side of the law. Click to view the minimum auto insurance coverage requirements in your state.
Keep in mind that these minimum requirements in no way limit the driver to purchase more coverage, should they feel the need. As stated above, the recommended bodily injury coverage amounts in the United States are $100,000 and $300,000. When it comes to choosing auto insurance coverage amounts, it’s often better to be safe than sorry.
How Car Insurance Rates Are Calculated
Rates are determined by the answers provided in a simple application given by insurance providers. Your answers will factor into how your individual insurance premium is calculated. The lower the risk you are deemed to be, the lower your insurance rates will be.
- How many at-fault accidents have you been in
- Your claims history
- How many driving violations or speeding tickets your have
- Your address
- Where you park your car
- How often you drive
- The length of your daily commute
- Your credit score
- How much coverage you want
As expected, low-risk drivers will pay less for auto insurance coverage. A driver who has no points on their driving record, no history of claims, and drives a simple Toyota Camry can expect lower insurance rates than a driver who drives a Lamborghini and has had multiple DUI’s.
While the answers provided in your application are important, it’s crucial that you never lie on your application in order to get lower rates. Lying on your application can not only cause your claims to be denied, but it can also lead to legal ramifications.
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 the risk level and coverage requirements of the driver, rates can be as low as $15 dollars per month.
By simply entering a zip code in the quote form at the top of this page and then providing some basic information, drivers can find compare affordable minimum liability coverage plans in their state.
Rest assured that your social security number (SSN) will not be required in order to obtain quotes. Many people worry about giving their SSN not only due to security concerns but also because they do not want their credit score checked. Only basic information such as your name, address, car type, and driving history will be used to determine your rates.
To begin finding cheap minimum coverage auto insurance rates in your state, please scroll back to the top of this page and enter your zip code. After filling out our brief form, we will match you with auto insurance providers who will provide you with quotes for minimum coverage in your locale.