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State Requirements

Minimum Auto Insurance Requirements by State

Car insurance is the only type of insurance nearly every state requires people to carry. States have their own minimum coverage limits you must meet in order to be considered a legal driver. In general, drivers are expected to carry the following types of car insurance:

  • Bodily Injury Per Person - Bodily injury per person is how much your insurer will payout for the injuries to cause to one person in an accident you have found to be at fault for.
  • Bodily Injury Per Accident - Bodily injury per accident refers to the amount in which your insurance provider will pay out for all injuries you cause in an accident.
  • Property Damage Per Accident - Property damage pays to cover damage you cause to the other party’s property in the event you have found to be responsible for the collision.

What has been outlined above is the bare minimum that nearly every state will require of you. Some states also mandate that drivers carry uninsured/underinsured motorist coverage or personal injury protection (PIP). It all varies, but the main goal behind these laws is to make sure there’s some level of financial responsibility for drivers.

Minimum requirements will vary from state to state. One state may have a $10,000 minimum limit for property damage, while another has a $25,000 minimum limit. More on these numbers and how they are expressed on policies and quotes will be explored below. You should keep in mind that what is outlined here is just the minimum requirements for drivers. There are a number of policy add-ons you can utilize to get the most out of auto insurance.

Understanding Coverage Limits

When you begin shopping for car insurance, you are going to see the mandatory minimum coverage amounts written one of two ways: 20/40/15 or $20,000/$40,000/$15,000. Understanding this sequence of numbers is important.

This string of numbers is known as the coverage limits for your auto insurance policy. The first number represents up to how much your insurer will pay out for injuries you cause to one person. The second number refers to the total amount covered per accident for bodily injuries. The last number is the maximum amount your insurance company will pay for damage you cause to the other party’s property. It may be helpful to think of it as such:

  • Bodily injury per person/bodily injury per accident/property damage

The mandatory insurance minimums are a good place to start when it comes to auto insurance, but you should definitely consider increasing coverage limits. Accidents can get very pricey, and standard coverage may only cover a portion of the expenses. Anything left over will be your responsibility to pay. Keep this in mind when you are shopping for car insurance.

If you need assistance with your car insurance policy, contact one of our expert agents. We are available in person at one of our many storefronts or feel free to give us a call.

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