Car insurance laws might let you skate by with the bare minimum — but that doesn’t mean you should. State minimum coverage is often too low to offer real protection, and if you cause an accident, it could leave you on the hook for tens of thousands of dollars (or more).
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Here’s a breakdown of the coverage most people need — not just to stay legal, but to stay financially safe.
Every state sets its own minimum car insurance requirements, but they typically include:
This covers other people’s injuries and damage you cause. It doesn’t cover your own injuries, your vehicle, or anything beyond those low dollar limits.
If you only have minimum coverage, a major crash could easily exceed your policy — and the rest would come out of your pocket.
This is the most important upgrade.
Why? Because hospital bills, vehicle repairs, and lawsuits add up quickly. These higher limits cost more, but the added protection is worth it.
If you’re hit by a driver with no insurance (or not enough), this coverage kicks in. It often mirrors your own liability coverage.
It’s especially valuable in states with lots of uninsured drivers, and it usually only costs a few extra dollars per month.
These protect your own vehicle.
If your car is worth more than a few thousand dollars — or you can’t afford to replace it out of pocket — this coverage is a must.
Note: If you have an auto loan or lease, the lender will usually require both.
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Rental reimbursement:
Roadside assistance:
Gap insurance:
Ask yourself:
If those questions make you nervous, then you probably want more robust coverage.
State minimum car insurance is like a leaky umbrella — it might protect you in a drizzle, but not in a storm. By boosting your liability limits and adding essential protections like uninsured motorist and collision coverage, you’ll have peace of mind when it matters most.
The good news is you don’t have to pay a fortune for a good car insurance policy. To find great coverage and great prices, check out this free tool to compare rates and get matched with top-rated insurance providers.
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