Low Cost Car Insurance for All Cars: What are the Legal Minimums?

low-cost-cars-insurance-minimumsIn every state you are required to have car insurance for all cars you own. Each car must have a minimum amount of medical and collision coverage. However, this car insurance for all cars may not cover the total cost of medical bills or car repairs if you are in a wreck. In addition, the legal limits for coverage will vary from state to state.

Some states require very high amounts of car insurance for all cars, while others have lower limits you can choose. Just keep in mind that if your coverage doesn’t cover all the costs of the wreck you are still responsible for the entire sum. Consider the following average amounts of coverage that are required to get low cost insurance.

Understanding the Terms

When buying car insurance keep in mind that your estimate of coverage will have three numbers. These three numbers will represent the amount of coverage you will receive. For example 50/100/25 means that you get $50,000 dollars of medical coverage per person with a maximum of $100,000 per accident.

The final number refers to the amount of property damage coverage you would receive in an accident. So in this example you would have $25,000 dollars to cover the expenses of other people’s property if you are in at-fault accident.

Medical Coverage

Each state offers different minimums for medical insurance coverage. For example, in Oklahoma you can carry $10,000 worth of individual coverage with a total benefit of $20,000. However, in Maine you must carry $50,000 of individual coverage and $100,000 total benefit. The key to choosing the right amount is estimating how much medical coverage might cost after a wreck.

After all, if someone is seriously injured in a wreck the medical costs could easily exceed $100,000 for one person. If two or more people are injured and you don’t have enough coverage the person can sue you in order to make you pay for any additional medical bills or costs.

Property Damage

Property damage limits can be as low as $5,000 in California or as high as $25,000 in South Carolina. When you are considering car insurance for all cars that you own this is a very important number. This number tells you how much the insurance company will pay individuals on your behalf if you destroy or damage their property in an accident. This money does not pay for your car it pays for the car of the person that you hit or the property that you hit.

Consider that the average car now costs at least $15,000 and you will see that the minimum in California would leave you with a balance to pay out of pocket. If you want to cover your own property and medical car insurance for all cars that you own you will need to take out comprehensive coverage with higher amounts.

When buying car insurance for all cars that you own it can be expensive. However, you need to consider the state minimums and then buy the amount of coverage that is right for you. After all you don’t want to owe thousands after you get into a wreck. Search online at the top of this page and use your zip code for affordable rates in your area.

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