Everything You Need to Know About Minimum Auto Insurance Requirements

 Everything You Need to Know About Minimum Auto Insurance Requirements

As a driver, it is important to understand your state’s minimum auto insurance requirements. Auto insurance is mandatory in most states to protect drivers, passengers, and other individuals involved in a car accident. Failure to have proper auto insurance coverage can result in fines, license suspension, and legal liabilities. This article will explore the minimum auto insurance requirements in the United States and what they cover. Minimum Auto Insurance Requirements

What is Auto Insurance?

Auto insurance is a type of insurance that provides financial protection in case of an accident. The insurance policy pays for damages caused to other drivers, passengers, or property and medical expenses incurred by the driver and their passengers. Auto insurance also covers the costs of legal fees in case of a lawsuit.

Auto insurance policies vary from state to state, and it is important to understand the minimum requirements to comply with the law.

Coverage

The following insurance minimums must be bought to meet the financial responsibility criteria necessary to register your vehicle and obtain license plates:

No-Fault (Personal Injury Protection) – to cover medical costs, lost wages, and other reasonable and necessary costs, such as housekeeping services and transportation to medical appointments, for a driver, passenger, or pedestrian hurt in or by your car;

Liability insurance covers potential damage that your car, or any other vehicle you operate with the owner’s permission, may cause to other people or their property. In contrast, Uninsured Motorists insurance covers potential injuries that you, your family, or your passengers may sustain in a hit-and-run collision or an accident with an uninsured vehicle.

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