19 Sep Auto Insurance Limits: 4 Reasons Why State Minimums Aren’t Enough

When it comes to auto insurance, you generally have two choices. The first is full coverage, which includes everything from comprehensive coverage to extras, including rental car reimbursement in case of an accident and towing within a certain range of miles. The other is called state minimum coverage. This consists solely of liability, uninsured/underinsured motorist coverage, and depending on the state, personal injury insurance and medical reimbursement coverage.

While a state minimum policy tends to cost less, it can cost you everything in the long run. That being said, there are many reasons why you should choose full coverage instead, regardless of your budget.

1) You Have No Theft Protection

No matter where you live, you run the risk of your car getting stolen. It can happen when you least expect it. And unfortunately, the odds of getting your car back in one piece are slim once someone has stolen it. Many vehicles end up getting stripped for parts, joyridden and crashed, or even set on fire. What happens if you don’t have full insurance coverage? Well, you’re just plain out of luck because state minimum coverage often doesn’t include theft protection.

2) What Happens if a Tree Branch Falls on Your Vehicle?

Living in an area prone to high windstorms, flooding, and other natural hazards increases the chance of something happening to your car or SUV. The only issue is that state minimum insurance doesn’t cover any of these things. What happens if a large tree branch comes crashing down on the roof of your car, essentially crushing it? Well, you could end up paying for those repairs, if the car is repairable, out of pocket, since state minimum insurance isn’t applicable.

3) You Could be Sued for Additional Damages

Another issue with state minimum insurance is the fact that it only provides a certain amount of protection. Once you get to that limit, you could end up facing a lawsuit. Here’s a good example. If you were found at fault for an accident, but only have the minimum amount of liability coverage, the other driver can sue you for additional expenses. Things like medical bills, lost wages, vehicle repairs, and more that weren’t covered by your insurance policy can be recouped by the other party via a lawsuit. If this happens, you could end up having to pay quite a bit of money out of pocket, including costly legal fees.

4) A Totaled Car Can Leave You on the Hook for the Rest of Your Loan

One of the advantages of having full coverage is choosing the option for loan payoff should something happen to your car. While this option costs a little extra, it’s worth it. With state minimum coverage, you don’t have this option, so you could end up having to pay for a vehicle that you can no longer drive should it end up getting totaled. Yes, you could be without the car, but having to pay the loan back, because your lender insists on it. This is just another reason why choosing full insurance coverage is a great idea.

Want to explore your insurance options and ensure that you and your vehicle are fully protected? Our knowledgeable team at Spivey Insurance can help review your current coverage or help you set up a new policy that meets your family’s needs. Contact us today.