When purchasing auto insurance, you will have choices, options, and decisions to make—everyone has different needs. If your ultimate goal is to have just enough coverage to meet the legal requirements in your state, then you will likely want to purchase a minimum coverage auto policy. This type of policy will not provide you with a lot of protection, but it will give you what you need to meet your state's requirements. Here are three things to know about a policy like this.
The only coverage it gives you is liability protection
The first thing to know is that with any minimum legal coverage policy, you will basically only have one type of coverage, which is called liability coverage. Liability coverage is protection for other people and not for you. It offers a way for people to collect money for damages to their cars when you cause an accident. People that you collide with might also be able to seek money from your policy for medical coverage if they were injured and for other things as well. The main point to understand is that minimum legal coverage offers you no protection for your car or your injuries if you cause an accident that leaves your car damaged or you injured.
It might not be enough to cover the damages of an accident you cause
Secondly, while a minimum legal coverage policy offers protection for other people, you should realize that it is not always enough. If you cause a major accident that leaves a person with permanent injuries, your policy's coverage limits might not cover the damages to compensate the person for this. If this is the case, that person might sue you personally for the damages.
It will be the cheapest policy you can get
Finally, you should realize why people purpose minimum legal coverage policies, and the main reason is to save money. This type of policy is going to be the cheapest type of policy you can purchase, and this is because it offers the least amount of coverage you could possibly purchase, and because it does not really offer you with much protection.
If this is the type of policy you want, talk to an insurance agent about it. As you discuss your needs and desires, the agent may talk to you about increasing the coverage to provide you with some protection too, but you can decide what is right for you.
Share6 August 2019
I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.