State Minimum Auto Insurance

Every state is independent in the way they set their minimum liability car insurance requirements and every vehicle owner has to comply with these laws if they don’t want to face fines, license suspensions, vehicle impoundments, citations and even a jail sentence for repeat offenders. Liability coverage is usually a portion of a standard auto insurance policy, which often comes with higher compensation limits than required and most motorists add Collision and Comprehensive covers to protect their automobiles.

Minimum liability vehicle insurance requirements were born out of a necessity. State authorities have to make sure citizens are protected against damages and injuries they suffer as a result of a traffic accident caused by someone else. However, states need to ensure that most motorists can afford them. There is no point in setting difficult conditions if people cannot afford and don’t buy. That is why the limits are generally minimal and often insufficient for a typical motorist.

Minimum liability auto insurance policies usually come with two components. The first part is Bodily Injury Coverage, which pays for injuries suffered by other people due to the fault of the insured driver. The second part is Property Damage Coverage, which pays for damages to other people’s possessions like cars, buildings and structures on the roads. No fault states require Personal Injury Protection as well because people have to pay for their own injuries in those states. Some states require Uninsured Motorist Coverage within the minimum too.

They are usually represented as 25/50/25 and in that; the first figure ($25,000) is the maximum amount payable for one injured person and the second figure ($50,000) is the maximum amount payable for all injuries and the last figure ($25,000) is the highest property damage pay out provided by the policy.

State minimum auto insurance can be very basic in many ways. First of all, they usually don’t protect your vehicle, family or yourself, unless you live in a no-fault state that requires Personal Injury Protection as well. Secondly, many authorities set their limits pretty low so they aren’t enough to compensate most third party losses in today’s world. That means you may be in for a surprise later on and have to settle them out of pocket when they exceed coverage limits.

When the money is tight people tend to look for cheap state minimum vehicle insurance to comply with the requirements so they can start driving. Generally, young and/or new drivers prefer them. One of the main reasons for it is that they normally fall into the highest risk category due to lack of experience and age. Automobile insurance for high risk drivers can be as much as 4 times higher than the premiums charged for a typical good driver so these people may not even think about buying anything more than what they have to.

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 learn how much premium they need to pay. Unfortunately, many people don’t check costs or get quotes before they buy a vehicle. Then, they naturally start asking what is the cheapest I can get? Besides, they may not need to insure their own losses if they bought a cheap starter automobile.

Basic liability only car insurance policies are good for people who just want to avoid penalties. Regardless of affordability, some people may just want the basic because they hardly use their automobiles, live in a quiet and safe part of the country and they are good drivers. However, such people would get many discounts so they can find great packages at low rates anyway. That is why it is always advisable to get quotations for full coverage even though you have almost made a choice.

All companies offer liability coverage because they cannot sell any policy without it for a car to be driven on the roads. However, some insurers set their limits higher than the minimum required by the state as standard and don’t offer the lowest limits. Actually some of them specially avoid motorists who are looking for the cheapest they can get because they consider this type of person to be high risk.

There are a few nonstandard car insurers like Safe Auto And Titan who are specialized in these minimum state required liability vehicle insurance policies. It is hard to predict how quotes can turn out for different types of drivers and therefore you shouldn’t ignore traditional carriers no matter how high risk you are. Just get a few quotes and see what your options are.

Points to Consider when Buying State Minimum Auto Insurance

  1. Consider increasing limits. This will increase the number of companies you can get quotes from and you may be able to find a decent plan while the premium doesn’t increase much. The last thing you want after an accident is to learn your insurance is insufficient, especially when you could have bought a policy with decent protection by paying slightly more.
  2. Remember that your vehicle isn’t protected by a liability only automobile insurance policy, which is for the benefit of third parties and doesn’t cover your and your family members’ injuries too.
  3. As soon as circumstances improve you should switch to a better policy. Consider looking into finding cheap full coverage, if you want your own vehicle to be included too. This is where the market is most competitive and that may sometimes lead to great prices.
  4. Most liability providers allow you to add Uninsured Motorist Coverage, if it isn’t automatically included. It is good to have and may not cost much.
  5. There may be really cheap solutions like broad form but they may come with serious limitations to watch out for. They offer liability for the named drivers only and don’t provide any protection for someone else driving your car so it can create problems later on.
  6. As a general rule, you should try to stick with a standard package and don’t go for really cheap ones to avoid possible troubles in case of claims.
  7. If you bought state minimum liability car insurance from a nonstandard carrier you shouldn’t make the mistake of keep renewing with them when circumstances improve. You should look into switching, as they are usually more expensive for good drivers who can find better deals anywhere.
  8. Don’t ignore traditional carriers. One or two of them may have already given you high rates. 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 you want. Obtaining a few quotes and comparing them is a simple and effective method of ensuring that you get good value.