Minimum Auto Insurance Coverage
Every state has different laws when it comes to car insurance coverage. These laws lay out the minimum auto coverage motorists can purchase. Depending on the state, the minimums vary as well as the type of insurance. Although these are the state minimums; it is highly recommended that you buy as much insurance as possible. Some states require you to have just bodily injury and property damage coverage and some states require you to carry those two and others, such as Uninsured/Underinsured Motorist coverage and Personal Injury protection (PIP). You can find a list of state minimums here.
Whether you use an insurance agent or go direct to the insurance carrier; make sure to go over your state’s requirements. Another thing to keep in mind is that laws change all the time. Check back with your agent or carrier to make sure your coverage is up to date.
Auto insurance is designed to protect you from any liabilities arising from an auto accident, theft, vandalism, or Mother Nature. If possible, don’t just buy the minimum amount. If you are involved in an accident, costs can add up very quickly. Always purchase the maximum necessary in order to protect yourself. Your premiums may be higher but your level of security is greater as well.
But what happens if you are on vacation in a state where the minimums are different from your state? Will you be covered? These are very common questions and people get confused. In most cases, if you are involved in an out of state car accident; your insurance carrier is obligated to extend your minimum coverage to that of the state where the accident occurred. Many carriers also extend automatic coverage to rental cars, especially when used as a temporary substitute for your insured vehicle. However, limitations apply and not all carriers cover “pleasure rentals” or will just cover liability, so be sure and read your policy or check with your agent before renting a vehicle.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.