What Does State Minimum Auto Coverage Mean, and How Will I Know If I Need More Coverage? 

State minimum auto coverage refers to the least amount of insurance that drivers are legally required to carry in their state. These requirements vary from state to state but generally include liability coverage for bodily injury and property damage.

Liability coverage can provide financial protection if you are at fault in an accident and are responsible for injuries or damage to another person or their property. This coverage pays only up to the policy’s dollar limits, and state liability requirements are generally low.

For instance, if your state requires a minimum of $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $25,000 for property damage liability, your insurance may cover these amounts in an at-fault accident. Any costs exceeding these limits would be your responsibility. So, while your coverage meets legal requirements, it may not provide adequate financial protection in the event of a severe accident.

Assessing the Need for Additional Coverage

Determining whether you need more coverage than the state’s required minimum limits involves evaluating your circumstances and potential risks. Consider factors such as your financial situation, asset value and driving habits. If you have significant assets, you may want to protect them by opting for higher liability limits. Additionally, if you frequently drive in high-traffic areas or have a long commute, the likelihood of being involved in an accident increases, making additional coverage a wise choice.

Another aspect to consider is the potential cost of medical expenses and vehicle repairs. Medical bills can quickly escalate, and the cost of repairing or replacing a vehicle can be substantial. State minimum coverage may not be sufficient to cover these expenses, leaving you financially vulnerable.

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Contact The Austin Agency to compare quotes for auto liability coverage tailored to your needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.