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Car Insurance - Coverage
Options
What the State
Requires
Almost every single
State will require that
drivers carry a specific
minimum amount of
coverage. However, that
minimum limit or amount
of coverage varies by
State. Certain States
such as Florida or
Louisiana, only requires
the bodily injury limit
to be at 10,000 per
person, and 20,000 per
accident, and 10,000 for
property damage. That's
typically written as
10/20/10. Other States
have slightly higher
limits, such as Georgia
for example which
requires a minimum of
25/50/25; but the
highest limits will be
found in AK with
50/100/25 requirement.
In other States where
some coverage or
insurance at all may not
be required, they usually
have other requirements
for the driver to meet.
The driver have
to face Financial
Responsibility
requirements in case of
an accident. Financial
Responsibility is where
the uninsured driver, in
case of an at-fault
accident have to show
proof of certain amount
of liquid assets to the
court in order to not
face penalties. Those
penalties vary by State,
and usually consist
SR-22, large fines, and
other types of penalties
including suspensions
and revocations of
licenses.
Required
Coverage
Most State
requires at least the
following minimum
coverage:
1. Bodily Injury
Liability (BI)
2. Property Damage (PD)
Optional
Coverage
1. Personal
Injury Protection (PIP)
Only required in
no-fault States
2. Medical Payments
(Optional Coverage for
yourself)
3. Uninsured Motorist
(UM) Usually optional,
covers yourself in case
other party has no
insurance.
4. Underinsured Motorist
(UIM) Optional, covers
yourself in case other
party is underinsured.
Other coverage options
may be available
depending on the
Insurance company.
You
might want to
consider options such as
Mechanical Breakdown
coverage, Gap Insurance
Coverage, Wrongful
Death. Also don't forget
Towing and Car Rental
Reimbursement coverage.
Comprehensive &
Collision Options
When you finance a vehicle, you will be required by the loan
company to carry
comprehensive and
collision coverage.
However they are
optional, meaning after
you pay off the loan,
you can remove
comprehensive and
collision from your
insurance policy.
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