American Eagle Insurance Blog
Auto insurance is mandatory in most states. When someone registers a vehicle in their name, they are required to purchase a minimum level of auto insurance before they can legally drive their vehicle. This is to protect the interests of the vehicle owner, in case their vehicle gets stolen, and other drivers and pedestrians, in case of an auto accident.
While there is a minimum auto insurance coverage all drivers should have per state, it might not be enough. While more coverage spells higher premiums, it might be worth it for the following reasons.
When State Minimum Auto Insurance Isn’t Enough
The minimum auto insurance drivers need varies between states. While the bare minimum is the cheapest way to go, it may not be enough.
Let’s say, for example, that ‘Driver A’ is at fault for an auto accident that causes serious injury to ‘Driver B’ and Driver B’s passenger. On top of Driver A’s medical expenses and vehicle repairs, their insurance also has to cover Driver B and their passenger. If Driver A’s insurance is not enough to cover the total cost of the accident, Driver A can be sued to pay out-of-pocket for the rest of the costs.
The problem with state minimums is that they may not always be enough to cover serious accidents. So, even if drivers can save by paying cheaper insurance premiums, it might not be enough to protect them when they need it most. As the saying goes: these drivers are penny-wise but pound foolish.
How Much Auto Insurance Drivers Need
Ideally, drivers should get the best insurance they can afford every month. This kind of coverage can protect a driver’s assets from being seized to pay off the additional costs if their insurance isn’t sufficient. As long as a driver has a good driving history and no outstanding debts, they can get the best price for the best coverage when they shop for auto insurance.
For those who aren’t required by their state to purchase auto insurance, it is highly recommended to get ample coverage if they do not have the means to pay for the costs associated with auto accidents. For example, if they get into an accident and end up in a hospital and do not have health insurance to offset the costs, auto insurance can protect them from medical costs associated with auto accidents.
At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.