There are many different coverage options when you want to buy a policy. When the money is tight people tend to look for cheap state minimum auto insurance coverage to comply with the basic requirements of their state. There are good reasons for why each state has such vehicle insurance laws. First of all, state authorities have to make sure that their citizens are protected against damages and injuries they suffer as a result of an accident caused by someone else. And secondly, they have to make sure that these policies are affordable for most motorists. There is no point in setting high minimum coverage car insurance requirements if people cannot afford and don’t buy.
Every state in the US is independent in the way they set their minimum liability requirements. You can find out your state minimum car insurance requirements here. No insurer can sell any policy less than the basic coverage enforced by your state anyway, except for special circumstances like qualifying for low cost auto insurance. These types of policies are generally referred to as “liability only auto insurance coverage”.
Who Is State Minimum Auto Insurance Good for?
These minimum coverage car insurance policies can be very basic in many ways. First of all, these policies usually don’t provide any coverage for your vehicle, yourself or your family, unless you live in a no-fault state that requires Personal Injury Protection as part of minimum coverage. Secondly, many states set their limits pretty low that in today’s world they cannot cover most accident third party damages. That means you may be in for a surprise later on and have to pay for third party damages out of pocket when they exceed your coverage limits.
Generally, young people or new drivers prefer minimum coverage auto insurance. One of the main reasons for it is that they normally fall into the highest risk drivers category due to lack of experience and age. Car insurance for high risk drivers can be as much as 4 times more than a typical policyholder would pay. You can check average car insurance rates by age by visiting that post.
Second reason is that young people cannot afford expensive cars anyway. After saving or begging parents for months for a car they usually have a shock to discover how much is auto insurance for teenagers. Unfortunately, many people don’t check costs or get quotes before they buy a vehicle. Then, they naturally start asking what is the cheapest car insurance I can get? Luckily, they may not need to insure their own losses if they have bought a cheap starter vehicle.
Minimum or basic auto insurance policies are good for people who just want to avoid penalties for driving without insurance. Regardless of affordability, some people may just want the basic coverage because they hardly drive their automobiles, live in a quiet and safe part of the country and they are good drivers. However, such people would get many discounts on their policies that they can find cheap full coverage car insurance anyway. That is why it is always advisable to get quotes for full coverage too even though you have almost made your mind to buy liability only car insurance.
Which Companies Offer Basic Car Insurance Coverage?
Almost every carrier offers liability only auto insurance coverage. However, large numbers of companies don’t offer basic liability coverage. Their policies come with better coverage than the bare bone minimum. Actually some insurers specially avoid motorists that are looking for the cheapest car insurance they can get because they consider this type of people to be high risk. There are many reasons as to why some insurers consider applicants to be more likely to make a claim and having money problems is one of them.
There are a few nonstandard insurers like Safe Auto And Titan that are specialized in cheap state minimum car insurance policies. You can find a list of non standard auto insurance companies here. When you really want to save some money you should take your time and shop for car insurance by getting several quotes from different types of carriers. It is hard to predict how automobile insurance quotes can turn out for different types of drivers and therefore you shouldn’t ignore traditional insurers no matter how high risk you are.
Points to Consider when Buying Minimum Coverage Auto Insurance
- You may want a basic car insurance policy due to financial restrains but you should always ask yourself how much auto insurance do I need? Sometimes, what you really need and what you want may not be the same.
- Consider increasing coverage limits. This will increase the number of insurers you can get quotes from and you may be able to find a decent coverage while the premium doesn’t increase that much. The last thing you want after an accident is to learn your cover is insufficient, especially when you could have bought a decent one by paying slightly more premium.
- Remember that your auto isn’t covered by a basic car insurance policy.
- Consider looking into finding cheap full coverage auto insurance, if you want your own vehicle to be insured too. This is where the market is most competitive and that may sometimes lead to great prices.
- Most basic auto insurance policies allow you to add Uninsured Motorist Coverage, if it isn’t automatically included. This is a good cover to have and may not cost much.
- As soon as your circumstances improve you should buy additional coverage or switch to a better policy.
- There may be really cheap policies like broad form car insurance but these policies may come with serious limitations to watch out for. Broad form auto insurance policies are the type of limited coverage policies that provide liability only coverage for the named operator only. It doesn’t provide coverage under any circumstance for someone else driving your car that can create serious problems later on.
- As a general rule, you should try to stick with standard policies and insurers and don’t go for really cheap ones.
- If you bought a policy with minimum auto insurance coverage from a nonstandard insurer you shouldn’t make the mistake of keep renewing with them when your circumstances improve. You should look into switching car insurance companies, as nonstandard insurers are usually more expensive for good drivers wanting decent policies.
- Don’t ignore traditional insurers. One or two top insurers may have already offered you high quotes. But the next one can give you a quote you cannot refuse. So, keep trying.
Once again, you should always shop around no matter what type of coverage you want. Getting a few quotes and comparing them is the only sure way of making sure you get good value for your money.