Compulsory Auto Insurance Policy Limits

A compulsory auto insurance policy is basically the state minimum car insurance coverage you must buy. Insurers aren’t allowed to sell policies that fall short of these coverage limits. So, you really don’t need to worry about falling short of basic requirements since every policy sold must comply with minimum policy limits. If you want to learn compulsory car insurance  requirements of your state you can go to your state here and check. There will be a link to your state insurance department website there as well. Also, you can check your state basic requirements by hoovering over your state on this map.

However, remember that these limits are basic and you should buy much larger liability coverage if you can afford it. One big accident you caused can ruin your financial well being if you don’t have compulsory car insurance liability coverage to pay for damages and injuries, especially if you have assets you build in your entire life. People will not hesitate to come after you for any shortfalls once your liability coverage is exhausted.

Generally, your premium will only go up a little even you buy much larger policy coverage. The best thing you can do is to get a quote for the minimum liability coverage and another quote for the level of protection you want and see the premium difference. We have done this and found that if the minimum liability coverage costs you $700 increasing the coverage 10 times may cost you extra $80 – $100. So, it would be a smart move to buy 10 times more protection for a fraction of additional premium.

Then, you need to consider what else you want to add on to your policy depending on the value of your automobile and your current health insurance arrangements. One coverage you should buy with liability is Uninsured Motorist coverage. This coverage pays for your damages and injuries if you get hit by an uninsured driver. Your state may require this to be included automatically with every policy sold. Otherwise, you may need to request separately. In any case, it is a good cover to have.

Keep in mind that car insurance rates vary substantially depending on the company you get a quote from. So, you shouldn’t accept the first quote you receive and get several alternative quotes before making your mind up. There are plenty resources here to help you find out which auto insurance is better for you. So do stay on and browse around.

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