Different States Have Different Requirements of Liability Coverage
In some states, it is not required to carry car insurance. Due to the financial situation of today, many drivers in these states are opting to cancel their policies and drive their vehicle with no insurance. This is a very dangerous move, no matter how much money it may save you each year. Car insurance is important to have. Not only will it protect you and the vehicle, but it could also prevent you from being sued for millions of dollars if you found at fault in an accident.
Many people are feeling the effect of the economy and are choosing to carry the bare essentials on their insurance policy. While this is acceptable, as long as you meet the requirements of the state, it is not the best thing to do. Having minimal insurance will not protect you or your assets if a claim is filed. Unless you have no assets and are driving an older car, it is highly recommended to add a little extra coverage to the bare essentials.
Currently, there are only two states in the country that do not require drivers to have liability coverage. Those states are New Hampshire and Wisconsin. All other states have coverage that is mandatory. When reviewing your policy or obtaining a new one, always check what the state requirements are. Personal Injury Protection is required in many states. This coverage will pay for any medical expenses you incur and will also cover any lost wages as a result of an injury in an accident. States that do not require this may require you to carry coverage that pays your medical expenses.
Different states have different requirements for bodily injury liability. No matter what the state requirement is, or if there even is one, it is suggested you carry this liability. If it is required, it may be best to purchase a higher limit. This will help to protect you if someone else is injured and you are found at fault. If the coverage does not cover their medical expenses, your assets will be at risk. Lawyers will do everything they can to claim your assets in a lawsuit if you do not have the liability coverage. This does not apply to everyone. If you have very little assets, then it may not be beneficial to pay for the extra coverage.
Aside from liability coverage, there are other things to consider, such as comprehensive and collision coverage. Collision will cover any damage that is done to the car in an accident. Comprehensive covers damage done when an accident is not involved. This could include fire, theft, falling objects or explosions. These two types of coverage are usually required when you are leasing a vehicle. They are also very important to have if you own a luxury car.
No matter what the state requires, you want to have coverage that will protect your assets, not just your car. You also want something that will pay for medical expenses. While many states do not require these, it is in your best interest to have them on your policy. Only having the bare minimum may save you money on the policy, but could cost thousands if you are in an accident.
Most people feel car insurance is a waste of money. While this may be true if you go your entire life without an accident, it is not wise to be uninsured. You never know what could happen, so it is best to pay the money and protect yourself in the event of an accident. This does not mean you have to have the best of the best, but make sure your medical expenses are covered and your assets are well protected.