Minimum insurance policy for an automotive is compulsory in most states in the US. Driving without an insurance cover in almost every county is illegal. You can find out your state minimum automotive Insurance requirements on the state insurance commissioner’s website.
There are a few states where insurance is not compulsory, but you are financially liable. In this case, you will compensate anyone you injure or pay any property you damage as a result of your driving. However, it is advisable to have insurance on your car. It is to avoid losing your assets in cases where the damage caused by your driving is enormous than what you can afford.
Minimum Automotive Insurance Policy by a Typical State
Different states differ in their minimum insurance requirements for car owners. However, there are fundamental insurance policies that most states require its citizens to have before driving.
Body Injury Liability
The body injury liability insurance covers injuries that you as a policyholder, cause to another motorist. The policy includes medical and funeral expenses among others. The minimum state insurance requirements may not always be enough to pay the damage caused by your driving. Hence it is advisable to buy a cover above the minimum state requirement to prevent assent loss.
Uninsured or Under-insured Motorist Protection
The insurance cover compensates you, your family or your drivers if they get in an accident with under-insure or uninsured motorists. The insurance also covers you if you are hit by an uninsured or under-insured car as a pedestrian and if you are a hit and run accident victim.
Property Damage Liability
This insurance coverage pays damages for property caused by you or someone driving your car with your authority. The property includes other vehicles, buildings structures or any other property your motor vehicle may damage in an accident.
Personal Injury Protection
The policy covers medical bills, funeral costs, wages lost and sometimes the cost of replacing the services performed by the passengers or driver injured in the insured automotive.
It is good to note that the above are minimum typical state insurance policy requirements. The coverage of the peril depends on the agreement between you and your insurance provider.
How to Determine How Much Car Insurance You Need
According to one car insurance company in Greenville, SC (site here), in addition to your state laws, there are a few things to consider when selecting an auto policy:
1. The type of car your drive
Some vehicles are susceptible to damages than other. It is good to do a background check on your car information to know how much you should pay above the required minimum.
2. Distance from how frequent you drive
The more and the far you drive your car, the higher the chance of getting involved in an accident. Hence, your premium increases with mileage.
3. Your age and driving record
The two factors mostly go hand in hand. When you are a bit old, you tend to cause more accidents than when you are younger. Also if you are prone to accidents, your premiums will be higher compared to when you are accident-free.