Why Auto Insurance State Minimums Probably Aren’t Enough 

Auto insurance is a legal requirement in most states, with each state setting minimum coverage limits.

While these minimums are designed to ensure that drivers have some level of financial protection, they may fall short of providing adequate coverage in the event of a serious accident.

Relying on state minimums can expose you to significant legal and financial risks.

If your insurance coverage is insufficient to cover the damage you cause, you could be sued for the remaining amount, putting your assets at risk. Inadequate coverage can leave you responsible for paying substantial out-of-pocket costs, which can be financially devastating.

Limited Liability Auto Insurance Coverage

State minimums typically focus on liability coverage, which pays for damages you cause to others in an accident. However, these limits are often relatively low. State minimums might cover only a few thousand dollars per person, which can be quickly exhausted in the case of serious injuries.

The minimum coverage for property damage is often insufficient to cover the cost of repairing or replacing a newer vehicle.

Uninsured/Underinsured Motorist Coverage

Many states do not require uninsured or underinsured motorist coverage, leaving you vulnerable if you’re involved in an accident with a driver who lacks adequate insurance.

Without this, you could be left paying out of pocket for damage caused by an at-fault uninsured driver or one with inadequate coverage limits.

Comprehensive and Collision Coverage

State minimums do not include comprehensive and collision coverage, which may provide coverage to help repair or replace your vehicle, regardless of fault. Comprehensive insurance may help cover theft, vandalism and natural disasters.

Collision coverage may help cover your vehicle if you are in an accident with another vehicle or object.

Contact Us

Review your insurance policy and consult your insurer to determine the best coverage for your needs. Contact Craddock Insurance Services in Gainesville, Georgia, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.