Did you know that auto liability insurance is not required in every state? Were you also aware that different states require different types and levels of auto insurance? Chances are, you probably answered no to at least one of these questions. Before you compare vehicles coverage, learn about the state requirements. This will make the comparison process less time-consuming.
Though a few states do not require automobile liability insurance, all states have financial responsibility legislation. This means that without insurance, the individual must have assets sufficient to pay claims should he or she cause an accident. Anyone who does not have sufficient assets must buy at least the minimum amount of insurance required by the state. Many experts recommend more than this minimum coverage because most accidents cost much more.
The state insurance commission Web site includes the minimum auto insurance requirements for the relevant state. For example, in Florida, the state minimum requirement for bodily injury coverage is $10,000 per person with a maximum of $20,000 per accident. This means that if three people suffered injuries of at least $10,000 each, only the first two claims filed would be honored.
The third person can then sue the driver at fault in the accident. If the suit is successful, the driver must pay the damages out of pocket. The minimum property damage coverage required per accident in Florida is $10,000, another figure that most accidents easily exceed. This illustrates how just one accident can result in huge out of pocket expenses for underinsured drivers.
Increasing coverage limits does not usually cost much more. If an insurance agent recommends a higher level of coverage, seriously consider getting it. Having adequate car insurance can eliminate additional stress in the event of an auto accident. The driver can rely on the insurance, rather than the bank account, to cover the related expenses.