Minimum Car Insurance: Only $44 Monthly, But Not Enough!

PR Newswire

TAMPA, Fla., Oct. 31, 2023 /PRNewswire/ -- AutoInsurance.org recently published a guide to determining how much car insurance a person needs. They discovered that the average cost of minimum liability insurance is just $44 per month. However, minimum liability requirements are insufficient for adequate financial protection for most drivers.

Highest and Lowest State Car Insurance Requirements

Alaska and Maine have the highest minimum requirements of all the states in the U.S. at 50/100/25, while Pennsylvania, New Jersey, and California are among the states with the lower requirements of 15/30/5. Florida is also at the low end of minimum requirements at 10/20/10.

The three numbers in the state required minimum are explained as follows:

First number – Bodily injury liability per person in thousands of dollars
Second number – Bodily injury liability total for multiple injured persons in thousands of dollars
Third number – Property damage liability in thousands of dollars

Considering most new vehicles cost more than even Alaska and Maine's $25,000 requirement, most drivers should consider more coverage.

Recommended Car Insurance Coverage

Drivers should consider liability limits of at least 100/300/75. Those numbers are a more realistic reflection of potential accident liability costs.

In addition to liability insurance requirements, Melanie Musson, a nationally recognized car insurance expert with AutoInsurance.org, urges readers to consider full coverage. "State-required minimum insurance will not cover the policyholder's vehicle. First-party coverages are available to protect a policyholder's vehicle."

Some states require drivers to cover their own injury costs regardless of who is at fault. In an accident. Personal Injury Protection (PIP) and Medical Payments Coverage (MedPay). These laws are called "no-fault" insurance laws.

In other states, tort laws are foundational regarding accident liability, and the at-fault party is liable to pay for the injury treatment costs of the other party.

Car Insurance Savings: Expert Advice

AutoInsurance.org provides readers with top tips to save on car insurance, including increasing their deductible, applying discounts, and shopping around for better coverage at a better rate.

Some of the most popular discounts include the following:

Bundling home and auto insurance
Claims-free
Good driver
Good student
Low mileage
Military

Each insurance company offers discounts at different percentages, but some policyholders could save as much as 40% on premiums with multiple discounts.

Read AutoInsurance.org's full report here: How much car insurance do I need?

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