Is The Minimum Enough?

We’ve all seen, read or heard the ads. “Low prices on state minimum auto insurance.”

But what does that mean? What is a “state minimum” and is it enough? Why would you be satisfied with the minimum of anything, let alone your automobile insurance?

Do All States Require Auto Insurance?

There are only two states that do not require automobile insurance for their drivers. While New Hampshire and Virginia do not mandate auto insurance, they do have financial responsibility laws. In New Hampshire and in Virginia, drivers can pay an uninsured motorist fee to the state and in New Hampshire, a cash bond can be posted.

What is a “State Minimum”?

To be effective, states realized that mandating auto insurance wasn’t enough. They would also need to require state minimum levels of coverage in critical areas. These areas include bodily injury liability, property damage and personal injury coverage.

What are State Minimum Amounts?

Minimum levels of car insurance coverage can vary from state to state. Typically, states require $25,000 in bodily injury liability coverage per person ($50,000 per incident) and $25,000 in property damage liability insurance coverage. In some states, personal injury protection (PIP) is optional.

Is There a Problem with State Minimum Coverage?

State minimums do what they are designed to do, set a minimum level of compliance with automobile insurance. This by no means makes these levels of coverage sufficient in the real world. With new car prices averaging over $40,000 you can see how insufficient $25,000 in property liability insurance can be.

The reality is that you should take just a little extra time to consider increased coverage in critical areas, and even include extras like uninsured motorist insurance for improved protection.

Our independent car insurance agents will help. If you let them do the shopping for you, they may even be able to improve your coverage with little or no increase in your premiums.

Give it a try. Contact one of our agents today for your no obligation, no cost quote.