State-by-state minimum car insurance requirements electricity lessons for 5th grade

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This is a good question. Why does your insurance agent tell you that the minimum is not enough? It all depends on how much personal risk you are willing to take. Insurance is meant to protect your current and future assets. If you do not have enough car insurance to cover damages caused to people or property when you have an accident, then you might get sued for the additional costs. Even if you do not have the cash in the bank, or have assets that can pay for the damages, your future earnings could also be affected. Why take the risk? How Minimum State Car Insurance Coverages Apply in a Claim

Remember that there are other ways to save money and get more discounts on your car insurance, if you make sure you get all the discounts you are entitled to, and buy your insurance from a good car insurance company then you can afford more than the state minimum insurance. Example of What the Numbers Mean in the Minimum State Car Insurance Coverages?

To understand this better, imagine if two people needed $25,000, then the maximum of $50,000 per accident would be sufficient. However, what of three people were injured, needing $25,000 each. The minimum would not be sufficient. In a case like this, you could end up in a difficult situation where whoever files first could get first access to the $50,000 limit and you may be sued for the rest if the accident was your fault.

Imagine if you hit the side of a house or an electrical pole, and the resulting damage exceeded $20,000. In this scenario, the minimum car insurance requirement might fall short and you could be sued for the difference. Minimum Car Insurance Limits May Not Be Enough to Protect You

It is easy to see how these limits may not cover all the liability and property damage needs. Now that you understand what the numbers mean, check the listing of each state’s minimum insurance requirements. Look up the state you live in to see if you feel comfortable with the minimum numbers.

It does not cost much more to raise your car insurance limits. Make sure you are adequately protected by contacting your insurance agent to discuss your options, choose a good car insurance company for your area, and find ways to save money on your auto insurance without putting your financial future at risk. Full List of Minimum Car Insurance Required By Law in Your State and Exceptions Alabama

Arizona has a special condition around legal requirements to drive your car. All drivers must show financial responsibility. You do not have to have insurance, however, if you choose to not purchase insurance you will have to be ready to put up a $40,000 bond to prove you can pay for damages resulting from an accident. Naturally, for most people, buying the minimum car insurance makes a lot more financial sense. Here are the Arizona minimum requirements if you choose to purchase insurance instead of put up a bond:

Personal injury protection (unlimited) Michigan offers no-fault insurance with mandatory coverages $1 million property protection (PPI). PPI pays up to $1 million for damage your vehicle does in Michigan to other people’s property, such as buildings and fences. Minnesota

Car insurance is not mandatory in New Hampshire. There is no minimum car insurance requirement for the State of New Hampshire, however, state law does require you to pay for any bodily injury or property damage arising from your operation of a vehicle that you own.

So, although there is no law forcing you to purchase auto insurance in New Hampshire, there is a law which will hold you responsible for paying for damages. You should purchase at least the minimum car insurance to protect yourself and your family.

Virgina has special conditions around car insurance. You do not necessarily have to buy car insurance, according to the DMV, Virginia law requires that all drivers have a way to pay for injuries or property damage resulting from a car accident. Minimum car insurance is one way to meet this requirement. These are the Virginia minimums: