How Much Auto Insurance Coverage Do you Need?
Almost every state requires that car owners have at least a minimum amount of auto insurance coverage.
While we recommend you focus on purchasing the coverage that fits your budget and lifestyle, it’s important to understand what’s required by law.
Most states require a minimum amount of liability coverage. Typically, the required liability coverage falls into two categories: Bodily Injury coverage and Property Damage coverage.
Both coverage types protect you when you’re at fault in an accident.
Bodily Injury coverage helps pay another person’s medical bills for injuries they sustained in an accident that you caused.
Property Damage coverage covers the cost (up to your coverage limit) of repairing someone else’s property that was damaged in an accident that you caused.
Some states will also require that drivers have Uninsured and Underinsured Motorist coverage. This type of insurance protects you if you’re involved in an accident caused by another driver that doesn’t have insurance or enough insurance to cover all the costs.
Is the State Minimum Coverage Limit Enough?
If it’s all you can afford, then yes, it is enough. If not, you should consider your risk and add coverages where appropriate?
Well, the total cost of an accident can exceed the minimum coverage limits set by the state.
If that happens, there is a good chance you will have to pay out of pocket to cover what your insurance doesn’t. That can really add up.