Is minimum car insurance coverage enough?

Minimum car coverage or more?
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Minimum car coverage or more?

Some car insurance commercials seem to be everywhere, touting state minimum coverage for less money. The idea is that rates are cheaper with basic coverage than with enhanced car insurance. If you're looking to cut costs, you may even be tempted to buy a bare minimum plan.

This type of coverage is certainly better than not having any insurance, but it may not be the best deal for drivers, says Robert Ryan, president of Ryan & Ryan Insurance Brokers in Kingston, N.Y.

That's because minimum coverage may not provide enough protection in an accident, he says. Many auto accident losses routinely surpass minimum limits.

Ryan says each state has different minimums, but many are similar to the limits in New York, with these levels of coverage:

  • $25,000 per injured person for bodily injury.
  • $50,000 per accident for bodily injury.
  • $10,000 for property damage.

To find your own state's requirements, ask a local insurance agent or contact your state's department of insurance.

If you're considering basic-coverage car insurance, here are five facts you should know.




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