Is State Minimum Car Insurance Enough?

What Is State Minimum Car Insurance?

State minimum car insurance is the insurance required for each state by law for their resident drivers. It normally includes bodily injury liability, property damage liability, personal injury protection and uninsured/underinsured motorist protection. Each state mandates specific minimum requirements. You need to meet or exceed your state’s minimum coverage to drive legally.

Is Minimum Car Insurance Enough?

Unfortunately, the answer depends on your specific circumstances. If you are financing or leasing your car, you will be required to carry full coverage car insurance including collision, comprehensive and gap insurance coverage.

If you own your car, you can choose your level of insurance coverage. Note that you will have to at least carry insurance coverage equal to your state minimum required by law. Other additional coverages will depend on your financial situation and appetite for risk. However, if you do choose to carry your state’s minimum insurance, you will be responsible for any expenses above your insurance limits, should you be involved in an accident.

Accordingly, we recommend that you take everything into consideration before you make a final decision. For example, you may be financially stable now, but what about the future. For more information regarding minimum car insurance, check Why Minimal Car Insurance Is a Bad Idea to learn more. is an insurance quote comparison website. We provide the latest insurance news and free auto insurance comparison quotes.

About Dale Williams

Dale Q. Williams, MBA, is a well-respected financial executive whose experience spans from insurance to investment banking. Dale has first hand underwriting experience through working for one of the largest U.S. based insurance carriers, and advisory experience from working for several bulge-bracket and middle-market investment banks. Dale also received his MBA from University of Chicago Booth School of Business, with concentrations in finance and accounting.