Often people ask what is the lowest level of auto insurance coverage you would need. It is important to understand the real meaning of this question because “should have” is totally different than “required by the state”. We will discuss both the cheapest available and how you can get enough cheaply in this post. Actually, we discuss these sort of questions many a time on this website.
People should buy at least enough liability to pay for damages and injuries they may cause. This is really crucial for financial security and peace of mind. If you don’t have enough protection against the damages you caused you will have to sell whatever you own and make the shortfall. And if you don’t have anything to your name how are you going to live with yourself knowing people suffer because of you and there is nothing you can do about it.
So, What Is the Minimum Car Insurance Cover You Should Have?
The figures of $100,000/$300,000/$100,000 is the general concession accepted by many experts as the safe amount. It breaks down as $100,000 for a single injury, $300,000 for maximum injury payout and $100,000 property damages claims. Of course, it isn’t a bulletproof figure by any means since a single car can cost half a million dollars and one simple surgical procedure can cost hundred thousand dollars. But since you are asking the minimum you need (and not must have for legal reasons) this is what you should have.
It is totally up to you if you want Comprehensive and Collision for your own automobile as well. If you purchased a car once you can probably manage to scrape up for another if worse happens. So, with your own vehicle the maximum you can lose is the price it would fetch in the open market. In other words, there is a known upper ceiling to possible loss. With liabilities, there is no such limits to the damages that can total up, say in case of a highway pile up or causing a train to derail. We don’t mean to scare you but these things happen to people.
That is why you should get as much liability vehicle insurance as you can afford. Basic limits set by each state are usually very low. Companies cannot sell policies with lower limits than that and people cannot have. It is explained here under the heading of buying more than the minimum. It is well advised that people should keep it safe.
Over 70% of motorists want it to be satisfactory and not interested in the bare basic. They buy at least Collision, Comprehensive and Uninsured Motorists coverage as well to be properly protected in case of accidents. They want their own losses to be included as well as third party claims.
Also, the costs don’t go up a lot. Increasing liability limits several holds doesn’t push up the premium that much as explained in that post.
Many brokers and agents wouldn’t just agree to selling the basic without talking to the customer about the risks they are running. Many brokerage firms may actually refuse to sell it. Furthermore, policies are generally sold as packages in today’s marketplace. Most packages come with substantially larger liability as well as Collision, Comprehensive and Uninsured Motorists Coverage.
What Is the State Minimum Automobile Insurance Requirements?
This is a totally different question than the first one. Here people are mainly concerned with complying with laws. They don’t want to be in trouble when they get caught. You can find out the state requirements by finding it in the list. It is understandable to go for the minimum enforced if you are finding it hard to pay for even the lowest premium.
To sum it up, basics are there to protect the public from motorists who would otherwise have no provisions for third parties. It is never the guidance for how much auto insurance you should have.
It is essential to point out here that you shouldn’t be scared to look for a decent protection. Often, people get frighteningly high first quotes and start chopping and changing initial objectives. It takes only 10 minutes at most to get a quote online that you can get a few before blowing a fuse. Actually, you can get them with different levels of coverage. Just remember to compare them for the equal terms. Why not have a go on our platform above and see how it will turn out and then think about it.