More Than A Number

When shopping for auto insurance quotes, everyone’s looking for a good deal. However, before opting for the cheapest insurance quote, be sure to take into consideration the minimum requirements for auto insurance. They vary by state, but most states require the following:

• Liability coverage. This coverage is designed for accidents where you are at fault. This coverage is quoted in three numbers: bodily injury coverage for one person, bodily injury coverage for all people injured in an accident, and property damage for one accident. So if liability coverage is listed as 15/30/5, it will provide $15,000 for one person injured in an accident, $30,000 for all people injured in an accident, and $5,000 for property damage. 

• Uninsured/underinsured motorist coverage. This coverage provides for all damage done to you, your car, and any passengers by an uninsured or underinsured driver, as well as hit-and-run drivers.

• Personal injury protection. This coverage pays for your medical expenses (even if the accident occurs in someone else’s car), lost wages, and other expenses that arise as the result of an accident. Personal injury protection generally covers about 80% of your losses and may also include a death benefit.

• Comprehensive and collision insurance. If your car is leased, you may be required to purchase these two types of coverage as well. The former protects your car from almost everything except the latter.

For many drivers, the minimum requirements are not sufficient for their needs. Still, it’s good to know the requirements so that you can effectively sort through your options when applying for free insurance quotes.