Full Coverage Auto Insurance: State Minimums Explained

State minimum car insurance is the minimum amount of insurance coverage that is legally required by the state in which you live. The requirements vary from state to state, but most states require some level of liability insurance, which covers any damages that you cause to another driver. Liability insurance is written with three numbers: the bodily injury coverage limit per person, coverage limit per accident, and limit of property damage coverage. In addition to liability insurance, some states also require uninsured/underinsured motorist coverage, personal injury protection (PIP), and medical payments coverage. While the minimum car insurance required by your state of residency will cover damages you cause to another driver, it will not cover your own. Additionally, it will not cover damages to your vehicle that are not from an accident, like theft. To ensure that you have enough coverage, it is always a good idea to check with your insurance representative.

Liability insurance

Liability coverage is for injuries and damage to others when you're at fault. It does not cover injuries to you or your passenger, nor does it cover physical damage to your vehicle, even when you're at fault in the accident. Liability insurance is typically included in full coverage insurance, which also includes collision and comprehensive coverage.

While liability insurance is a requirement in most states, the specific coverage amounts will vary from state to state. For example, Connecticut's minimum liability coverage is 25/50/25, while Delaware's is 25/50/10.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage comes into play when you are in an accident with a driver who has no auto insurance. This coverage can help pay for various expenses, including medical bills for you and your passengers, lost wages, pain and suffering, and damage to your vehicle. It is important to note that uninsured motorist coverage does not pay anything to the driver who was uninsured; instead, it compensates you for your losses.

Underinsured motorist coverage, often offered alongside uninsured motorist coverage, is slightly different. It protects you if you are in an accident with a driver whose insurance is insufficient to cover the damages or injuries they caused. This coverage can also help pay for medical bills, lost wages, pain and suffering, and vehicle repairs.

Both uninsured and underinsured motorist coverages are mandatory in many states and highly recommended for all drivers. In some states, you are required to have at least the state's minimum coverage for uninsured motorists. It is also worth noting that uninsured/underinsured motorist coverage typically includes a lower deductible compared to collision coverage.

When considering whether to add or increase your uninsured/underinsured motorist coverage, it is essential to evaluate your specific situation. Factors such as the presence of other insurance coverage, the likelihood of encountering uninsured drivers in your state, and the potential costs of repairs and medical care should be taken into account.

In summary, uninsured/underinsured motorist coverage is a valuable addition to your auto insurance policy, providing financial protection and peace of mind in the event of an accident with an uninsured or underinsured driver.

Personal injury protection (PIP)

PIP covers medical procedures and reasonable expenses related to rehabilitation, including ongoing professional care, lost wages, and funeral expenses. It may also cover some home care expenses, such as childcare or house cleaning, that the injured person is unable to do. In some states, PIP includes a deductible, with a range of amounts to choose from.

The cost of PIP insurance varies depending on the coverage limit, deductible, and state. For example, in Washington state, the minimum PIP coverage includes $10,000 for medical expenses per person, $200 per week for lost wages, $200 per week for loss of services, and $2,000 for funeral expenses.

While PIP provides valuable coverage, it is important to note that it does not cover all injury-related expenses. For instance, it does not cover damage to the insured person's vehicle or property, or injuries caused by using recreational vehicles or motorcycles. Additionally, it does not cover intentional injuries caused by the insured or injuries sustained while committing a felony.

Medical payments coverage

MedPay can pay for various expenses, including EMT and ambulance fees, hospital visits and stays, professional nursing services and care, and dental procedures resulting from an accident. It is important to note that MedPay does not cover trailers or other equipment attached to the car.

The cost of MedPay varies depending on the desired coverage level and insurance provider, ranging from $2 to $37 per month. Policyholders can choose a maximum dollar payout, which helps determine the premium cost.

MedPay can act as primary or secondary coverage. If it is primary coverage, the policyholder pays their medical bills upfront and then seeks reimbursement from their MedPay carrier, without having to worry about deductibles or copays. On the other hand, if MedPay is secondary coverage, the health insurer pays the majority of the medical bills, and MedPay covers deductibles or copays.

While MedPay is optional in most states, a few do require drivers to carry it. It is worth considering even if you have health insurance or personal injury protection, as these policies may not cover car accidents or may require deductibles and copays. MedPay can provide additional peace of mind by helping to pay for unexpected medical expenses.

Collision and comprehensive insurance

Both types of insurance are usually required for a car loan or lease. If you lease your car or have borrowed money to buy it, your lender will likely require you to purchase both collision and comprehensive insurance. This is to ensure that you don't walk away from your loan or lease if your car is stolen or totaled. Once your car loan is paid off, collision and comprehensive insurance become optional.

The cost of collision and comprehensive insurance will vary depending on the insurer, your location, the value of your vehicle, and other factors. On average, collision coverage costs $814 per year, while comprehensive insurance costs $367 per year.

It's important to note that neither collision nor comprehensive insurance is required by state law. However, if you want to ensure your vehicle is protected in the event of an accident or non-collision incident, it's a good idea to consider adding these coverages to your policy.

Frequently asked questions