Skip to content
Driving comes with risk, and accidents are expensive, not to mention lawsuits that may come out of them. To protect your assets and comply with state laws, you will need to hold at least bodily liability and property damage auto insurance.
State Requirements
Each state has its requirements of minimum coverage all drivers must hold.
XX/XX/XX. You will see that your state lists its requirements for minimum coverage from bodily injury or property damage using three numbers separated by forward slashes. Bodily injury protection pays for damages for physical injuries to another person if you are responsible for the accident. The first number indicates the dollar limit in thousands that your insurance will pay per person. The second number indicates the dollar limit in thousands that your insurance will pay in total for all injured people.
The third number is the total in thousands that your property damage insurance will pay for all property damages caused to third parties. Property damage coverage pays for damages you cause to a third party’s property, which is most often the other person’s vehicle. Other structures that would be covered by this insurance would be objects such as fences, poles, structures, and items inside the other person’s vehicle.
Liability
Lawsuits are expensive. When you have liability coverage through your auto insurance, you get help paying to defend yourself in court and to help pay for any settlements.
Asset Protection
If you find yourself liable for an accident, you may be responsible for paying tens of thousands or even hundreds of thousands of dollars to the third party to pay for property damage and medical bills. Your auto insurance will not be able to prevent the accident, but it can protect you from the financial disrepair wrought by the fallout.
Uninsured/Underinsured Motorists
You cannot rely on other drivers to be responsible or to be financially prepared to pay for damages you sustain in an accident. Uninsured and underinsured motorist coverage will pay for your medical bills or damages if the third party at fault is unable to pay for your damages.
Repair Damages
Do you take good care of your vehicle? If yes, then why take the chance of being unable to repair or replace damaged parts in the event of an accident? Your auto insurance can help you pay for the repair or replacement cost of parts or the whole of your vehicle if you get into an accident. For such an investment, this makes auto insurance a no-brainer. You can choose whether or not to get collision insurance or comprehensive insurance based on the value of your vehicle.
Pay for Medical Bills
Minimum coverage limits imposed by your state may not have high enough limits to cover your medical bills if you are injured in an accident. Personal injury protection insurance or medical payments coverage can protect you if you need to visit the hospital or go to physical therapy as a result of an accident.
Looking for more reasons to purchase auto insurance? Insured for Life can walk you through your coverage options and help you decide which coverage you may need.
