State Minimum Car Insurance

There are various options when you want to buy a policy. When the money is tight people tend to look for cheap state minimum vehicle insurance to comply with the requirements. There are good reasons for the existence of these laws. First of all, authorities have to make sure that their citizens are protected against damages and injuries they suffer as a result of a traffic accident caused by someone else. And secondly, they have to ensure that most motorists can afford them. There is no point in setting difficult conditions if people cannot afford and don’t buy.

Every state in the US is independent in the way they set their liability car insurance requirements. This can cause price discrepancies across the country because these rules influence premiums a lot. Nobody can sell any policy less than the limits enforced anyway, except for special circumstances like qualifying for low cost programs.

Who Is State Minimum Auto Insurance Good for?

They 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 that 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.

Generally, young people 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 more than a typical one that these people may not even think about buying anything more than what they have to.  You can check average 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 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? Luckily, they may not need to insure their own losses if they have bought a cheap starter automobile.

Basic liability only 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 that 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.

Which Companies Offer Basic Car Insurance Coverage?

Almost all of them offer liability only. However, large numbers of them don’t offer the lowest limits. They come up with much higher amounts than the bare bone. Actually some of them specially avoid motorists that are looking for the cheapest they can get because they consider this type of people to be high risk. There are many reasons as to why they think these applicants to be more likely to make a claim and having money problems is one of them.

There are a few nonstandard carriers like Safe Auto And Titan that are specialized in these cheap policies. You can find a list of non standard auto insurance companies here. When you really want to save some money you should spare a moment and shop around by getting quotes. It is hard to predict how estimates can turn out for different types of drivers and therefore you shouldn’t ignore traditional names no matter how high risk you are.

Points to Consider when Buying Minimum Coverage Vehicle 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 that much. The last thing you want after an accident is to learn it is insufficient, especially when you could have bought a decent one by paying slightly more.
  2. You may want it due to financial restrains but you should always ask if it is enough. Sometimes, what you really need and what you want may not be the same.
  3. Remember that your auto isn’t protected by a basic policy.
  4. Consider looking into finding cheap full coverage, if you want own vehicle to be included too. This is where the market is most competitive and that may sometimes lead to great prices.
  5. 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.
  6. As soon as circumstances improve you should switch to a better policy.
  7. 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 that can create serious problems later on.
  8. As a general rule, you should try to stick with standard package and don’t go for really cheap ones to avoid possible troubles in case of claims.
  9. If you bought a liability policy 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.
  10. 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 for money. It can be spent to create so many happy memories with your loved ones that it would be such a waste to hand it over without a good fight.

Share on Pinterest
There are no images.