Top 3 Reasons Why State Minimum Car Insurance Coverage is Not Enough

MyTPG Blog
Published: 08/5/21 5:00 AM

Title image for Top 3 Reasons Why State Minimum Car Insurance Coverage is Not Enough showing a man sitting down on the ground in front of a car with the headlights on.

Top 3 Reasons Why State Minimum Car Insurance Coverage is Not Enough

This article was published on: 08/5/21 5:00 AM




To legally operate a motor vehicle, most states require you to carry car insurance. Depending on where you live, the state will also dictate what type of insurance requirements you must meet, including for example what coverage limits or minimums you must have.

An Ounce of Prevention Is Worth a Pound of Cure

Although by meeting these minimums you will technically be complying with the law, there is a bigger issue to consider. If you are in an accident, you need to seriously consider your car insurance coverage ahead of time. Don’t get caught in a bad situation. Take steps now. So then, consider the top 3 reasons why state minimum car insurance coverage may not be enough for you.

The Problem with Minimum Coverage Car Insurance

As we mentioned at the outset, in most states you must carry basic liability insurance to drive legally. This type of policy covers injuries and property damages. However, there are 3 big reasons why state minimum car insurance coverage may not be enough.

Reason #1: The coverage may be as low as $10,000 per person or $20,000 per accident. If the accident is serious, these limits won’t do the job.

Reason #2: If you get into an accident, and the damages aren’t fully covered by your policy, the other parties have the option to sue you personally for the difference. As a result, you may have to pay thousands of dollars all on your own.

Reason #3: If you don’t have the money to cover the expenses, your assets might be seized by the court.

For these reasons and others as well it should be clear that you need to carefully examine if the state minimum car insurance coverage is enough to give you peace of mind. So, how can you protect yourself?

How Much Car Insurance Should I Carry?

As shown above, you need to protect your wallet and your assets should you be at fault in a serious accident. If your desire is to pay the least amount possible, then look at having higher coverage limits along with a low deductible. Don’t forget though that you pay for the deductible if an accident occurs, so you need to make sure that you can afford to pay that amount at any point in time since you never know when you might have an accident. This will also surely raise your monthly payments. So, you need to balance the monthly costs outlay along with the potential to come up with the deductible. However, following this advice will give you the most bang for your buck.

A Policy Designed Just for You

There are so many choices, things to consider, ways to protect yourself and we understand that your situation is unique to everyone else’s. So then, let us help you get that peace of mind you’re looking for. Reach out to us today by calling 909.466.7876 and we can walk you through each step. Also, we have Auto Insurance content for you to explore, check it out now!