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What Is Minimum Liability Car Insurance?

by Carmen PickelOctober 8, 2021,
What Is Minimum Liability Car Insurance?

Minimum liability car insurance is the minimum amount of coverage that your state requires. It’s important to know what this means because it can affect how much money you have to pay out-of-pocket if you get into an accident. 

Minimum liability coverage is a requirement for all drivers in every state. It protects other people on the road from your financial responsibility if you cause an accident. In some cases, even if you don’t have enough money to cover all of the damages that result from a crash, your insurer will pay out as much as they can afford up to the limits of their policy. 

That way, no one else ends up footing the bill for your mistake or carelessness behind the wheel. If your state requires only the bare minimum of liability coverage on your policy, then this isn't enough protection for most drivers. 

The average American driver will pay an additional $500 or more per year just by carrying the required minimum limits instead of higher limits where they live. That's not even taking into account any damage done by uninsured motorists who hit them, which happens every day across America. 

Insurance agents typically recommend liability coverage of 100/300/50 for a full coverage policy. It's also worth considering an umbrella policy for more comprehensive protection. 

The difference between minimal and full coverage is that a full coverage policy includes three types of coverages. The first is bodily injury liability (BIL), which covers injuries to others in an accident that was your fault. The second is property damage liability (PDL), which covers damages to other people’s cars or property if you were at fault. 

The third is uninsured or underinsured motorist coverage (UM/UIM). This will help pay for medical expenses and other costs if someone hits you and doesn't have any insurance or not enough insurance to cover all of your expenses.

Liability car insurances will be helpful in certain situations. These types of coverages protect your vehicle from theft, fire, vandalism, hail damage, and more.

To learn more about different types of insurances, visit Lakeville Motor’s blog section.

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