Buying the state minimum car insurance sounds like a great idea, doesn’t it? After all, who wants to pay more for something than you have to? But hold on — there are actually some real perks to buying more than just the mandatory coverage that every driver is required by law in their states. Yes, you might pay a little extra initially, but over time, these added benefits can really help save your money and provide peace of mind when life throws a curveball at you.
Let’s discuss why it is beneficial to consider buying more than the state minimum car insurance.
UNDERSTANDING YOUR STATE’S MINIMUM AUTO CAR INSURANCE REQUIREMENTS
The first step in understanding why you need more than the state minimum for your car insurance policy is to familiarize yourself with your state’s requirements. Every state sets laws regarding the amount of coverage drivers must have to operate a vehicle legally; these requirements vary significantly from state to state.
For example, some states require only basic liability coverage, while others mandate personal injury protection and uninsured/underinsured motorist coverage as well.
3 Types of Additional Coverage To Consider
1. Collision Insurance
Collision insurance covers the cost of repairs or replacements for your vehicle if it’s damaged in an accident. This type of insurance could also cover the cost if another driver was at fault in the accident.
While this type of coverage is optional, it can be a lifesaver if you’re involved in an accident and don’t have enough money to pay for repairs out-of-pocket. Keep in mind that this type of coverage doesn’t cover medical expenses resulting from an accident, so you’ll still need to consider other forms of personal injury protection for that. Collision coverage is required if you have a vehicle that is leased or has a lienholder.
2. Comprehensive Insurance
Comprehensive insurance covers your car against damage caused by things other than accidents — such as theft, fire, hail, flooding, or vandalism. This type of coverage is usually required if you have a loan on your vehicle. Still, it can be beneficial even if you own your car outright, since it can help protect you against financial losses caused by these non-accident scenarios.
Comprehensive coverage includes deductibles just like collision insurance does; however, selecting lower deductibles on your comprehensive coverage is typically much less expensive than premiums associated with collision deductibles.
3. Uninsured Motorist Insurance
Uninsured motorist insurance provides protection if you’re involved in an accident with someone who doesn’t have any auto insurance or sufficient liability limits on their policy.
This type of coverage is especially important because many states require only minimal amounts of liability protection; therefore, if another driver has insufficient limits on their policy, they may not cover all the costs associated with an accident they cause.
Uninsured motorist insurance can help provide the extra protection needed in those situations and mitigate out-of-pocket expenses for any damages or injuries caused by an uninsured driver.
THE BENEFITS OF BUYING MORE THAN THAT STATE MINIMUM CAR INSURANCE
No matter what state you live in, you must have car insurance. Every state has a minimum requirement for financial responsibility, but most drivers don’t realize that there are benefits to buying more than the state minimum.
When you purchase more than the minimum amount of car insurance coverage, you’re providing yourself with extra protection. Even though your policy may cost more when you add additional coverage, it could save you money in the long run if something were to happen, and you needed to make a claim.
- ● Having extra coverage could mean the difference between having to pay out-of-pocket for any damages or being able to rely on your policy and not having to worry about those costs.
- ● Another benefit of purchasing more than the state minimum car insurance is that many companies will offer discounts if you choose a higher level of coverage. By doing so, not only are you protecting yourself from potential financial losses, but you may also be eligible for discounted rates as well.
- ● In addition, if you finance your vehicle or lease through a bank or dealership, they may require that you have higher levels of coverage in order to protect their investment in case something were to happen with your vehicle.
More Coverage Can Also Add Additional Protection
Having more than the legal minimum insurance coverage can provide added protection from liability issues and medical costs associated with an accident. If someone else has been injured in an accident and decides to pursue legal action against you, liability coverage can help cover court fees and attorney’s costs associated with defending yourself against those claims.
For instance, some policies include Uninsured Motorist Property Damage (UMPD) coverage, which pays for repairs on your own vehicle after an accident caused by another driver who either didn’t have car insurance or didn’t carry the minimum liability car insurance.
There are many benefits of buying more than the state minimum car insurance for drivers looking for additional protection from financial losses and other liabilities associated with owning a vehicle. Not only does it provide extra peace of mind knowing that unexpected costs related to a car accident will be covered, but it can also result in discounts when purchasing higher levels of coverage from certain companies too.
Getting more than adequate amounts of auto insurance is one way drivers can protect themselves from financial loss and liability issues down the road. Consider a conversation with your carrier or agent to increase your auto policy beyond just meeting your local state’s requirements.
And if you need help finding the best car insurance coverage for the best price (no matter the coverage), start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.
