There are certain auto insurance requirements which vary from state to state. Every state sets minimum auto insurance liability for its drivers. If you are not aware about the minimum auto insurance requirement of your state, then you need to understand your state’s minimum required insurance regulations in order to get out of compliance while on road.
Minimum requirement means:
Auto insurance companies generally follow similar terminology while referring to minimum liability requirement for bodily injury and property damage coverage in a series of 3 numbers.
For example: If a state sets minimum auto insurance coverage requirement as 25/50/10, then the first number $25,000 represents the maximum amount of bodily injury liability that will be paid out for only one person injured in an accident. The middle number, $50,000 represents the maximum amount of bodily injury expenses that will be paid out for all the injuries in only one accident. The last number $10,000 represents the maximum amount of property damage liability paid out in one accident.
Is minimum requirement sufficient?
Most states require you to carry the state’s minimum requirement of auto coverage to cover the loss/damage of the third party in the event of an accident. However, simply buying only the minimum auto insurance coverage doesn’t mean that you won’t need to take money out of your pocket. If the loss for property damage/medical bills incurred in an auto accident is more than the minimum requirement, then you need to pay legally for the damage caused in the accident.
So, get a right level of coverage, whether it is your state’s minimum or something more comprehensive. Use the state minimum requirement as an initial amount and add some coverage to it. Get a premium quote that balances between maximum coverage that you can afford. Be sure you won’t be under-insured, check details of all the policies before entering into an insurance contract.