Minimum Auto Insurance Requirements
Auto insurance requirements vary by state in the U.S., but most states mandate drivers to maintain a minimum level of liability coverage. This is designed to protect other drivers and their vehicles in the event of an accident for which you are found responsible.
Basic Liability Coverage
The minimum auto insurance typically includes:
- Bodily Injury Liability: This coverage pays for medical expenses and lost wages for the other party if you are at fault in an accident. States often require a specific amount per person and a total per accident.
- Property Damage Liability: This covers the costs of damage to someone’s property (like their vehicle) as a result of an accident you cause.
State-Specific Requirements
Each state has its own minimum limits. For example:
- California requires a minimum of $15,000 for bodily injury per person, $30,000 total for bodily injury per accident, and $5,000 for property damage.
- New York mandates a minimum of $25,000 for bodily injury per person, $50,000 total per accident, and $10,000 for property damage.
Additional Considerations
While state minimums are essential, it’s often advisable to purchase additional coverage to protect your assets adequately. Consider collision, comprehensive, and uninsured/underinsured motorist coverage for better protection on the road.