How Can I Find Out What My State’s Requirements Are?

Having car insurance coverage that meets or exceeds your state's requirements is vital to protecting yourself. If you are stopped by a police officer while driving without adequate coverage, you will be facing some pretty unpleasant fines. Worse, however, would be if you were involved in an accident while you aren't sufficiently covered. Then you might be facing a lawsuit - an even bigger blow to your wallet. Here's how to make sure that you are adequately insured.

Paying for What You Need

Usually, when you purchase insurance, the car insurance company will tell you what your state requires, and set you up with at least that much coverage. If you drive a very expensive car, or live in a dangerous area, you may want more coverage. Your car insurance agent can work with you to decide what's best for you. You won't need to worry about meeting your state's requirements, however. A reputable car insurance company won't sell you insurance that doesn't meet state minimums. They will also contact you if your state passes a new law requiring more coverage and walk you through the process of adding to your existing insurance.

What many companies will not do, though, is inform you that your state now requires less coverage. Why would they want you to reduce your coverage and therefore pay less money? It's not good business. They also won't tell you if you're paying for coverage that you don't need. Remember your expensive car? After five years, it's going to have depreciated in value. You may be paying for insurance that you don't need.

How Do I Know What I Need?

The easiest way to discover your state's legal minimums is to go online. Make sure that you use a reputable website, though. There is a lot of misinformation floating around the internet, so check for a source like your state's official webpage, or the DMV's website. Your minimum coverage will be expressed by three numbers, usually in this format: 20/45/10. This refers to the amount that your car insurance will pay per bodily injury ($20,000), the amount total for all bodily injuries, ($45,000), and the amount paid for property damage, ($10,000).

Another place that you can check is your local DMV. Next time you stop in, ask the agent what your state's legal minimums are. The scary DMV with the endless line is a thing of the past in most areas. You will be able to find a person there who can help you with your questions. You may have to take a number, but it won't take you all day to do!

Once you know exactly what you coverage you need to be legally insured, you can tailor your insurance policy to meet your state's needs. If you know the amount of coverage that you need, you'll never be talked into paying for more coverage than you want by an overzealous car insurance salesperson. And to make sure that you're getting that coverage at the best price, get a quote here at carinsurancerates.com. Minimum coverage insurance can vary a lot from company to company based on your demographic attributes. Get insurance that covers you legally for less!