Auto Liability Insurance: Checking the Minimum Level in My State

Car insurance requirements vary from state to state, but in nearly all of them you are required to purchase auto liability insurance at the very least. Auto liability coverage is insurance against any damage you may cause to other persons and/or property, and each state sets its own minimum level of liability insurance coverage. There are only 2 states that don’t require liability insurance to drive, but in those states you must prove that you have the available assets to cover the costs of any accident you may cause. Checking the minimum level of required auto liability insurance in your state starts with an online search.

Searching online it is easy to find a state by state breakdown of the minimum auto liability requirements. Only 2 states, New Hampshire and Wisconsin do not require it, but, as already mentioned, there you must prove your assets in order to cover any costs. An important thing to remember is that although each state has a minimum set level of auto liability insurance, often it is not enough to cover damage that you may inflict on persons or property in the event of an accident.

For example, the state of Oregon only requires that you possess $10,000 in property damage protection, but should you be at fault in an accident that totals a car worth $20,000, you are responsible for paying the different out of pocket. The same thing applies to personal injury liability. The minimum amount of coverage will only cover a hospital stay up to a point, and depending on the seriousness of the injury inflicted, you could be held accountable for a lot of medical bills. In other words, the minimums are in place in each state as a level of basic protection you are required to purchase, but they should not be thought of as amounts that will fully indemnify you from liability.

Of course, the purchase of insurance is not a good substitute for safe, responsible driving. Insurance is not meant to foster a moral hazard, leading to the belief that because you are insured you can drive as aggressively or irresponsibly as you want. Likewise, the minimum requirements are a starting point, a level of basic coverage that it is wise to build upon.

Checking the minimum level of auto liability coverage required in your particular state starts with an Internet search. Once located, you will see the minimum amount of personal liability and property damage insurance you must purchase to drive legally in your state of residence. The minimums are not designed to be the only coverage you possess; rather, they are intended to ensure that all drivers have basic protection from other drivers’ mishaps. The wise choice would be to start with the basics and increase your coverage to protect yourself in the event that an accident happens.