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What's the Minimum Auto Insurance Coverage I Need to Drive?

Brian Stevens

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If you want the absolute lowest price possible for auto insurance, you need to know the minimum auto insurance coverage required by your state. Each state has different minimum requirements, so you'll need to go to your state's Department of Insurance website to find out the requirements for your state.

What Do the Numbers Mean?

When you see insurance requirements, they will typically be in a format like this - 20/40/5.

What do these numbers mean? Well, the first two numbers are for bodily injury limits. This is the amount an insurance company will pay for injuries in an accident. The first number is the per person limit and the second number is the accident limit.

In this example the insurance company will pay up to $20,000 per person injured in an accident, but no more than $40,000 total for all people injured.

The third number is the property damage coverage. In our example, the insurance company would pay $5,000 for property damage.

Is Minimum Insurance Enough?

While the minimum insurance requirements may seem like a lot, they really don't offer much coverage.

If you caused an accident that injured someone, their medical bills could very quickly surpass your insurance if all you have is the minimum required amounts. Then you're left vulnerable to lawsuits and having to pay the rest of the amount out of your own pocket.

It ‘s far better to choose higher coverage amounts and try to save on your insurance in other ways.

For example, you can go online to get free quotes from insurance comparison websites. Because companies on these websites are competing for your business, you'll find the quotes are cheap.

Other Ways to Save on Your Insurance

* Get the highest deductible you can afford

* Get all the discounts you're eligible for

* Get your home and auto insurance through the same company

* Install car alarms and anti-theft devices on your car

If you choose your insurance wisely, you can afford to increase your coverages beyond the minimum requirements.

Where to Get the Best Rates

Visit or click on the following link to get auto insurance quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.

The authors, Brian Stevens and Stacey Schifferdecker, have spent 30 years in the insurance and finance industries, and have written a number of articles on minimum auto insurance coverage.


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