Idaho Auto Insurance: Understanding The Minimum Coverage Requirements

Idaho requires all drivers to have liability car insurance. The minimum coverage requirements are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $15,000 property damage liability per accident. However, drivers can opt for more coverage to protect their financial assets, vehicles, and passengers.

Bodily injury liability insurance

Idaho law sets minimum coverage amounts of $25,000 for bodily injury to one person in an accident and $50,000 per accident. This means that if you cause an accident, your insurance will cover the cost of medical expenses for each injured person up to $25,000, and total medical expenses per accident up to $50,000.

While these are the minimum requirements, it is recommended to purchase higher limits for more protection. The cost of medical treatment can add up quickly, and if the limit of your policy is exceeded, you will be responsible for paying the remaining amount out of pocket.

You can also purchase additional coverage to protect your own financial assets in the event of a lawsuit. Some experts recommend having bodily injury liability limits of at least $100,000/$300,000. It is generally advised to have enough coverage to protect your net worth.

In addition to bodily injury liability insurance, Idaho also requires property damage liability insurance with a minimum coverage of $15,000 per accident.

Property damage liability insurance

In Idaho, the minimum property damage liability insurance requirement is $15,000 per accident. While this is the legal requirement, it is worth considering opting for higher coverage limits. The cost of repairs can quickly exceed the minimum coverage, leaving you financially exposed. By choosing a higher limit, you can ensure that you are adequately protected in the event of a more serious or multi-vehicle accident.

When deciding on the amount of property damage liability insurance you need, it is essential to consider your personal circumstances. Ask yourself if you own a home or other valuable assets, if you frequently drive in high-traffic areas, or if there are many luxury vehicles in your area. If the answer to any of these questions is yes, increasing your coverage limits is advisable.

Additionally, it is worth noting that property damage liability insurance requirements vary by state. The minimum coverage required by your state ensures compliance with legal requirements, but it may not provide sufficient protection. To determine the appropriate coverage for your needs, consider using a car insurance calculator or consulting a local insurance agent. They can help you assess your risk factors and choose the right coverage to protect your financial well-being.

Uninsured motorist coverage

In Idaho, insurance companies are required to provide Uninsured Motorist (UM) Bodily Injury coverage and Underinsured Motorist (UIM) Bodily Injury coverage. However, a named insured can reject either or both of these coverages in writing.

UM and UIM coverages protect you if you are injured in an accident caused by an uninsured driver or a driver who doesn't have enough liability insurance. They pay you the damages that the responsible driver's liability insurance should have paid you if that driver had been insured.

It is important to note that UM and UIM insurance only pays for your personal injuries. It will not cover damage to your vehicle. To repair or replace your damaged car, you will need collision insurance.

The coverage limits for UM/UIM Bodily Injury coverage generally match the coverage limits you chose for your Bodily Injury Liability coverage limits. However, this may differ between insurance carriers.

Idaho law requires that you maintain a minimum of $25,000 per person and $50,000 per accident in Bodily Injury Coverage on your auto insurance policy. The coverage limits on your policy are the maximum amount of money the insurance company is obligated to pay to the other person on your behalf. You can purchase higher limits for more protection.

Insurance companies are required to provide to the named insured a disclosure via the Idaho Uninsured Motorist and Underinsured Motorist Disclosure Form. This form explains the UM/UIM Bodily Injury coverages, provides the option to reject either or both coverages, and explains the difference between the two types of Underinsured Motorist Bodily Injury coverage.

There are two types of Underinsured Motorist (UIM) Coverage:

• Excess – If your insurance carrier offers “excess” UIM coverage limits, your UIM coverage limits provide coverage for medical injuries sustained by you and/or your passengers above and beyond what is paid by another party’s insurance.
• Difference in Limits or Offset – If your insurance carrier offers “difference in limits” or “offset” UIM coverage limits, your UIM coverage limits provide coverage for medical injuries sustained by you and/or your passengers that are reduced or eliminated by any amounts recovered from another party’s insurance.

Underinsured motorist coverage

In Idaho, insurance companies are required to offer Uninsured Motorist (UM) Bodily Injury coverage and Underinsured Motorist (UIM) Bodily Injury coverage, unless a named insured has rejected the coverages in writing.

There are two types of UIM coverage:

Excess

If your insurance carrier offers “excess” UIM coverage limits, your UIM coverage limits provide coverage for medical injuries sustained by you and/or your passengers above and beyond what is paid by another party’s insurance.

For example, if you have $25,000 in UIM coverage and the at-fault party has $25,000 in Bodily Injury Liability coverage, your UIM coverage increases the available Bodily Injury coverage to $50,000.

Difference in Limits or Offset

If your insurance carrier offers “difference in limits” or “offset” UIM coverage limits, your UIM coverage limits provide coverage for medical injuries sustained by you and/or your passengers that are reduced or eliminated by any amounts recovered from another party’s insurance.

For example, if you have $25,000 in UIM coverage and the at-fault party has $25,000 in Bodily Injury Liability coverage, your UIM coverage does not provide additional coverage above the at-fault motorist’s coverage because they have the same limit.

However, if you have $100,000 in UIM coverage and the at-fault party has $25,000 in Bodily Injury Liability coverage, your UIM coverage covers any deficiency in the at-fault motorist’s Bodily Injury coverage, as if the at-fault motorist had Bodily Injury coverage at your UIM limit.

Collision insurance coverage

In Idaho, collision insurance coverage is not legally required. However, it is an optional coverage type that you can choose to add to your policy. It covers the cost of repairing or replacing your vehicle if it is damaged in a collision with another vehicle or object, such as a guardrail or a tree. This is regardless of who is at fault in the accident.

Collision insurance is particularly beneficial for those who lease or finance their vehicles, as lenders often require this coverage to protect their investment. If you own your vehicle outright, adding collision coverage is at your discretion. However, it is worth considering to avoid the potentially high costs of repairs or replacement in the event of an accident.

When deciding whether to add collision insurance to your policy, consider the value of your vehicle and your ability to pay for repairs or a replacement out of pocket. If your vehicle is new, expensive, or retains good value, collision insurance can provide valuable protection. On the other hand, if your vehicle is older and has a low value, you may decide the cost of collision insurance is not worth the benefit.

In Idaho, the average annual cost for state minimum car insurance is $303, or about $25 per month. While this does not include collision insurance, adding it to your policy can provide additional peace of mind and financial protection in the event of a collision.

Frequently asked questions