Bluefire Insurance

When it comes to auto insurance, the term “minimal coverage” refers to the minimum mandatory level of liability insurance required by state law. Every state has some form of requirement for financial responsibility. These requirements ensure that drivers will have options to seek compensation when they are involved in an accident with a negligent motorist. Liability insurance is the most common form of financial responsibility requirement.

Having the minimum car insurance required by law not only protects you from being personally responsible for causing an accident. The appropriate coverage could also help you avoid a ticket and the steep fines that come with it. Minimum levels of coverage are important, but a discussion with your insurance agent might show you how you could be at risk without additional coverage.

What is Liability Insurance?

Liability insurance is a form of coverage that protects you from third-party liability claims. It is intended to cover claims from other motorists when you are responsible for an accident.

This type of insurance does not pay for your damages following an accident. It is purely a form of financial responsibility to compensate any other motorist you might injure in a crash. Given the steep cost of medical care following an accident, liability insurance could protect you from a lifetime of debt.

Auto insurance isn’t just important for your financial future. Certain types of insurance are required by law in order to drive. Most states only require liability coverage, while a few others mandate policies that include uninsured motorist insurance.

The consequences for driving without insurance coverage vary from state to state. In some places, the lack of insurance will result in a fine, while others could even lead to jail time or vehicle title revocation. Given what is at stake, it is crucial that you maintain the minimum level of insurance required by law.

Is Minimal Coverage Enough?

Only you can decide if the minimum levels of liability coverage are enough for you. The insurance needs for a young owner of a sports car are likely to be very different than what someone driving an older vehicle might require.

Selecting the desired amount of insurance coverage depends on determining how much risk you are willing to accept. Minimum coverage might be enough in some cases but not others. According to the National Safety Council, the average cost for an accident with a disabling injury is more than $98,000. That is well above the minimum policy limits of every state.

It is also helpful to remember these mandatory minimums only apply to liability insurance. Other types of insurance are entirely voluntary, but carrying this coverage could benefit you in the long run. Some voluntary types of insurance that are worth considering include:

• Collision: Collision insurance provides the policyholder with benefits for their property damage caused in a vehicle collision. These benefits are available no matter who is responsible for causing the accident.
• Medical Payments: Medical payment—or MedPay—insurance is similar to collision coverage in that it provides no-fault benefits to the policyholder, even if they cause the accident. This type of coverage pays for medical expenses related to an accident.
• Comprehensive: While the name might imply comprehensive insurance will cover anything, this type of policy only takes effect under certain circumstances. A comprehensive policy is similar to collision coverage in that it will pay for the damage to your vehicle. However, this type of coverage only applies to damage that occurs outside of a collision. For example, a tree branch falling on your vehicle could lead to a comprehensive coverage claim.
• Uninsured Motorist: Another form of insurance that could cover your damages is known as uninsured motorist insurance. Commonly referred to as UIM, this type of coverage protects you if you are involved in a crash with an uninsured or underinsured driver.

Minimal Coverage Information

The minimum level of car insurance coverage can vary from one state to another. While many states share similar coverage requirements, the minimum level of coverage can vary. What’s more, a small number of states require additional coverage outside of liability insurance, including UIM coverage. Other states, including Washington, require a minimum level of UIM coverage, but drivers have the right to waive this coverage entirely in writing. Here are the minimum coverage requirements across different states:

Alabama

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $25,000 for property damage coverage per accident

Arizona

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $15,000 for property damage coverage per accident

California

• $15,000 for bodily injury coverage per person
• $30,000 for bodily injury coverage per accident
• $5,000 for property damage coverage per accident

Illinois

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $20,000 for property damage coverage per accident.

Indiana

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $25,000 for property damage coverage per accident

Louisiana

• $15,000 for bodily injury coverage per person
• $30,000 for bodily injury coverage per accident
• $25,000 for property damage coverage per accident

Mississippi

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $25,000 for property damage coverage per accident

Texas

• $30,000 for bodily injury coverage per person
• $60,000 for bodily injury coverage per accident
• $25,000 for property damage per accident

Washington

• $25,000 for bodily injury coverage per person
• $50,000 for bodily injury coverage per accident
• $10,000 for property damage coverage per accident

Find a Policy That Meets Your Needs

It is helpful to understand the minimum level of insurance coverage required by your state. It is also important to realize this minimal coverage may not be enough to protect you after an accident.

Bluefire Insurance is dedicated to finding you the right coverage at the best rates. Feel free to contact us online or give us a call at (866) 424-9611 right away.