Auto Insurance Minimum Requirements

More and more people are forsaking their auto insurance minimum in order to save money every month. However, many states are also, at the same time, passing laws mandating proof of insurance for registering a vehicle for the road. If you happen to be pulled over by a policeman and can not provide proof of adequate insurance you can receive a citation.

Auto Insurance Minimum Requirements


Most states today, with the exception of New Hampshire and Wisconsin, require that every vehicle on the road have adequate insurance coverage. At the very least, they need to have the state minimum requirement.

1. Bodily Injury Liability Coverage


As a part of an insurance policy, a person must have coverage for bodily injury if an accident was to occur. This liability can fluctuate between states, but the average is $25,000 of coverage as a minimum requirement.

2. Bodily Injury Liability for All People

Besides having coverage for just one person who is hurt in an accident, a policy must also contain coverage for everyone involved in an accident. Again, the numbers according to each state will fluctuate up and down. However, the average minimum coverage for bodily injury for everyone involved is $50,000.

3. Property Damage Liability Coverage

Property damage can mean vehicles involved in the wreck, buildings, and personal property. The average minimum coverage for property damage coverage is $10,000.

4. Personal Injury Protection

Some states will also require a Personal Injury Protection Coverage, or PIP,  be included as a minimum requirement to protect against loss of wages, and any medical bills for their own injuries. This type of coverage will pay 80% of the wages and all of the death benefits.

5. No Fault Insurance

Some states will also require, as minimum coverage, a 'No Fault' coverage. This type of coverage will pay for your medical expenses, and losses, in the event that someone else is at fault instead of you.

6. Collision


As a very minimum, collision coverage will cover the costs to any damage done to your car in the event of an accident. This coverage is only in the event of an accident with your car.

7. Comprehensive


Comprehensive coverage is available to cover those things like fire, theft, falling objects, or any other unexpected happenings. This is usually not required, but only in the event that you owe a debt on the car. This is required by the lending agency.

Buying Insurance Policy


Depending on your situation, or the state you live in, buying the minimum requirements should be the very least that you carry to protect you in the event of an accident. While some will balk at the high prices of the insurance, it is necessary to protect you from going deeper into debt because of loss of wages, and even paying for a new car if yours is "totaled".

Shop around for a good policy that will offer you the auto insurance minimum. It is easy to resent the monthly costs, but the benefits are worth the expense.
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