While all states differ in one way or another with insurance, each has some form of auto insurance requirements. There is no state that allows drivers to randomly cruise down the road without any insurance whatsoever. What you have to consider is whether the minimum is adequate enough.
The Insurance Information Institute recommends that all drivers have a minimum $100,000 bodily injury protection per person along with $300,000 per accident. What this would commonly be referred to as is 100/300. With no-fault car insurance, your policy is required to pay medical bills for you and your passengers no matter who caused the accident.
As you continue to look at auto insurance requirements, it is vital you understand how to properly read liability limits. The first number is always going to be bodily injury liability maximum for one person that is injured in an accident. The second will be bodily injury liability maximum for all injuries in one accident. The final number is the property damage liability maximum for an accident.
The minimum car insurance required in your state will get you by, but it can hurt if you are involved in a car accident and it will depend on the state’s laws as well. If you are a part of an accident in another state that requires higher minimum coverage, your policy will automatically increase to meet that state’s minimum coverage.
There are some states that completely restrict the ability of citizens to sue one another for pain and suffering following a car accident. 12 states in the U.S. have no-fault laws that essentially mean your car insurance must pay for bodily injury damages regardless of whose fault it is.
It is not difficult to identify what the minimum auto insurance requirements are for your state. It is spread all over the internet, can be found in books and is well-known through each insurance company. Some examples include California having a 15/30/5, Colorado has a 25/50/15, Florida a 10/20/10, and New York having a 25/50/10.
Car insurance is mandatory no matter what city, county or state you may live in. How much insurance is needed will depend on the state which is precisely why you need to take the time to find out when looking for auto insurance requirements. As a result, you can then better judge exactly what kind of premium to get and how much you can afford based off of the minimum.