If you have a vehicle, then you have to purchase an auto insurance policy. There is no 2 ways about it. But before purchasing an auto insurance policy, there are few things that you should keep in mind. First of all, you should compare the auto insurance quotes offered by the insurers. This will help you grab the best deal. Secondly, you should purchase the auto insurance coverage as per your state law. Read along to know about how much coverage you should buy as per the state law.
Auto insurance coverage as per your state law
Most state laws clearly specify the minimum insurance coverage you need to purchase. In spite of that, it is important to remember that an automobile accident can cost you more than the minimum coverage specified by the state laws. Accidents can happen any time. There is no guarantee that you’ll never be involved in an accident, no matter how safe you drive. Therefore, most insurance experts are of the opinion that it is better to carry around $300,000 of bodily injury protection for every accident and $100,000 per person.
If your state has a provision of no-fault auto insurance law, then you’re required to cover the hospital bills of all the individuals injured in the accident. You’ll have to pay the bills irrespective of who caused the accident. Several states have implemented these laws to lower the insurance scam rates.
It may happen that you get involved in an accident when driving in another state. Now the minimum injury coverage required to be bought by the individuals differs from state to state. If you meet an accident in a state where the minimum required coverage is more than your state, then you won’t have to spend extra money for that. Your insurance policy will be considered equivalent to the other state’s minimum coverage level. But this will be applicable only when you have the minimum auto insurance coverage in your state (where you reside).
For instance, the minimum liability coverage in the event of an accident in the Connecticut state is given below:
a) The bodily injury protection for every individual – $20,000
b) The bodily injury protection for accident – $40,000
On the other hand, as per the state auto insurance laws, the minimum liability coverage in New York is:
i) The bodily injury protection for every individual – $25,000
ii) The bodily injury protection for accident – $50,000
In this case, your current auto insurance policy will satisfy the New York’s minimum coverage requirements. This clearly shows the importance of knowing the state auto insurance laws when buying a policy. Thus it is better to get acquainted with the state auto insurance laws so that you can buy the required amount of coverage.
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