Understanding State Minimums

As America's drivers take to the street, they should be aware that all states require motorists have auto insurance coverage. While rules governing insurance requirements vary from state to state, most, if not all states have a legal minimum coverage that drivers are required to purchase. It is noteworthy that most minimum requirements relate only to bodily injury liability limits and property damage liability limits.

In most cases, these liability limit laws were established as a way to protect innocent motorists and property from accidents caused by other motorists. Prior to the passing of these requirements, drivers were being victimized by uninsured motorists, creating substantial logistical problems and financial burden for the victims. In order to enforce current minimum insurance coverage laws, many states require "proof of insurance" prior to issuing car registrations and new drivers licenses.

By no means should motorists assume that states are setting a minimum that is sufficient to cover motorists in case of an accident. These are simply minimum amounts established so innocent victims have some recourse. The reality is that these minimum coverage levels are not sufficient to adequately protect the "at fault" motorist. With the high costs of hospitalization and repairs to property, the current minimum requirements could still expose the insured to substantial liability in the case of a major accident. It is incumbent on each licensed driver to determine their own threshold for exposure to liability, and then purchase enough insurance coverage to give them the coverage they desire and need.

If an individual is unsure about the minimum auto insurance coverage laws in their state, they can check the state's Driver's Manual or find the necessary information on each state's insurance commissioner's website.