Even if you have no intention of causing an accident, car insurance coverage is very important. Minimum insurance coverage only covers accidents and other incidents where you are at fault. Comprehensive and collision insurance will pay for any damages caused by incidents outside of accidents. This type of insurance will cost more than the minimum coverage. If you’re concerned about the cost of this policy, read on for some tips on how to get the most coverage for your money.
Car Insurance Requirements by State
all fifty states require car insurance, and the exact minimum amount of types of coverage varies. According to the Insurance Information Institute, liability coverage is mandatory in all states, save two. Liability coverage pays for damage to other cars and injuries to other drivers. In states that do not require liability coverage, the other driver must pay for damages themselves and carry personal injury coverage. To determine how much coverage is required, check with your state’s insurance department.
While it may not seem necessary, it’s a good idea to have car insurance, even in states that don’t require it. Without insurance, you may be liable for bodily injury or damage to other people’s property. This can add up very quickly and leave you liable for a large sum of money. If you are found at fault in the accident, you face a lawsuit for damages.
Personal liability insurance
Driving without liability insurance is illegal. New Hampshire requires proof of your financial responsibility in the event of an accident. Liability insurance only covers certain costs if you are at fault in an accident, and medical bills can add up very quickly.
Liability insurance pays for damage to other people’s property. It does not cover the cost of medical bills or lost income. The same applies to the cost of the other person’s vehicle if you were at fault in the accident. Property damage liability insurance pays for damage to their vehicle. This car insurance coverage is mandatory in most states.
The minimum liability insurance coverage in Arizona is $15/30/10. In an accident, the other driver flips their blinker to move into the next lane and crashes the car into the other driver’s blind spot. Another driver’s car is heavily damaged and the driver’s insurance pays up to $20,000 to repair it. The driver is responsible for the rest of the damage to the car.
It can save you money
You can save money by purchasing the minimum insurance coverage required by your state. If you are in an accident, your insurance company may charge you more for the liability coverage you need. Your loyalty to your insurer may contribute to higher premiums. If you are unsure about your insurer’s lower premium, compare other insurance policies in your state. If you can’t afford the extra coverage, downgrade your policy.