Jane Dotson
The bare minimum auto insurance requirements vary by state. In Florida, drivers are required to have $10,000 in personal injury protection (PIP) insurance and property damage liability (PDL) insurance. In California, the minimum coverage requirements are higher, with drivers needing $15,000 in bodily injury liability per person, $30,000 per accident, and $5,000 in property damage liability. These minimum coverage requirements are essential to comply with state laws and drive legally, but they may not provide full financial protection in the event of a serious accident.
| Characteristics | Values |
|---|---|
| Minimum property damage liability | $10,000 |
| Minimum bodily injury liability per person | $15,000 |
| Minimum bodily injury liability per accident | $30,000 |
| Average cost of minimum coverage per year | $627 |
| Average cost of minimum coverage per month | $52.25 |
| Minimum personal injury protection | $10,000 |
| Minimum uninsured/underinsured motorist coverage per person | $25,000 |
| Minimum uninsured/underinsured motorist coverage per accident | $50,000 |
What You'll Learn
Liability insurance
Liability coverage typically includes two types of coverage: property damage and bodily injury. Property damage coverage pays for damage to another person's property, including repairs to the other driver's vehicle, a rental vehicle while the other person's car is being repaired, damage to buildings, fences, or other structures, and damage to personal property. Bodily injury coverage provides payment for injuries sustained by another person in an accident, including legal fees if you're sued.
The cost of liability insurance varies depending on factors such as the amount of coverage selected. Higher coverage limits will typically result in a higher premium. The coverage limits are usually expressed as three numbers, such as 25/50/10, indicating the coverage for bodily injury per person, bodily injury per accident, and property damage per accident, respectively.
It is important to note that liability insurance does not cover damages to your own property or injuries to yourself. To protect yourself financially in the event of an accident, it is recommended to consider additional coverages such as personal injury protection, uninsured/underinsured motorist coverage, or medical payments coverage.
The minimum liability coverage required varies by state, so it is important to check the specific requirements in your state. Most states require a minimum of $20,000 to $50,000 in bodily injury liability coverage and $10,000 to $25,000 in property damage liability coverage. However, experts recommend carrying more than the minimum liability insurance to ensure adequate protection in the event of a serious accident.
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Uninsured/underinsured motorist coverage
Uninsured motorist coverage comes into play when your car is hit by a driver who does not have auto insurance. Under this coverage, uninsured motorist bodily injury (UMBI) may pay medical bills for both you and your passengers, while uninsured motorist property damage (UMPD) may cover repairs to your vehicle.
Underinsured motorist coverage, on the other hand, protects you when the at-fault driver doesn't have sufficient insurance to cover the damages or injuries they caused. Underinsured motorist bodily injury (UIMBI) can help pay medical bills for you and your passengers, while underinsured motorist property damage (UIMPD) can assist with vehicle repairs.
It's worth noting that some states may require a deductible for UMPD/UIMPD, but UMBI/UIMBI generally doesn't include a deductible. Additionally, this coverage can also be beneficial in hit-and-run incidents, although in some states, UMPD will not cover these situations.
The amount of uninsured/underinsured motorist coverage you need depends on your state's requirements and your personal situation. For the bodily injury portion, consider matching the amount with your liability coverage limits. For UMPD, you can select a limit that aligns with your vehicle's value.
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Personal injury protection
In the US, PIP is mandatory in some states, optional in others, and not available in the rest. For example, in Texas, PIP insurance is not mandatory, but you have to sign a waiver if you want to decline the coverage. On the other hand, Florida requires drivers to carry a minimum of $10,000 in personal injury protection.
PIP covers reasonable medical costs, including necessary surgeries, X-rays, dental or eye treatments, medical procedures, prosthetic devices, and professional nursing. It also covers rehabilitation therapy, lost income resulting from the accident, and replacement of necessary services provided by the injured party, such as family care or household maintenance, if the injured person is not an income producer.
The cost of PIP insurance varies depending on where you live, the amount of coverage you want, and your driving history. For example, in Texas, insurance companies are required to offer every driver at least $2,500 of PIP insurance, which can typically be increased to $5,000 or $10,000 if you want additional financial protection.
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Medical payments coverage
MedPay can help cover:
- Hospital visits or stays
- Nursing services and care
- Ambulance and EMT fees
- Health insurance deductibles and co-pays
- Surgery, X-rays, and dental procedures
MedPay limits typically range from $1,000 to $10,000, depending on the state and insurer. It is a good idea to carry coverage equal to your health insurance deductible so that you can use MedPay to cover your out-of-pocket medical expenses. If you don't have health insurance, consider carrying a higher MedPay limit to help pay your medical bills after an accident.
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Collision and comprehensive coverage
While neither collision nor comprehensive coverage is mandated by law in any state, lenders often require borrowers to purchase both types of coverage to protect their investment. If you own your vehicle outright, collision and comprehensive coverage may be optional, depending on your state and individual circumstances. However, if you lease your car or have a car loan, your lender will likely require you to carry both types of coverage. This is to ensure that their investment is protected in case of an accident or other damage to the vehicle.
The cost of collision and comprehensive coverage can vary depending on factors such as the value of your vehicle, your location, and your chosen deductible. When selecting your deductible, consider how much you would be willing to pay out of pocket if your car was damaged. Generally, the higher you set your deductible, the lower your premium will be. It's also worth noting that some insurers may require you to purchase comprehensive and collision coverage together.
In summary, collision and comprehensive coverage are important types of auto insurance that can protect you from unexpected costs associated with vehicle damage. While not always required by law, these coverages are often necessary to meet the requirements of a car loan or lease. When deciding on the right coverage for your needs, consider factors such as the value of your car, the amount of driving you do, and your current savings.
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Frequently asked questions
In Florida, the bare minimum for auto insurance is $10,000 in property damage liability and $10,000 in personal injury protection.
In California, the bare minimum for auto insurance is $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $5,000 in property damage liability per accident.
Auto insurance is required in all states except New Hampshire and Virginia. The minimum coverage limits vary by state, so be sure to check the requirements for your specific state.
If you are caught driving without auto insurance, you may face legal consequences such as fines, vehicle impoundment, suspension of your driver's license, and increased insurance premiums in the future.
The bare minimum auto insurance typically only covers damages to another person's property and medical expenses resulting from an accident. It does not cover damages to your own vehicle or injuries to yourself.
