Is minimum liability insurance coverage right for me?
In most states, liability only auto insurance coverage is the most basic level of auto insurance that you can buy for your vehicle. There is a minimum amount of liability car insurance coverage required by law in almost every state. You can often find cheap insurance to purchase that will help you meet your state’s minimum requirements and keep you legally covered on the road.
Sticking to liability car insurance is an easy way to keep your insurance costs low, but it’s not an option for every driver. For instance, if your vehicle is leased or financed, you may be required to carry coverage that goes beyond liability insurance. Also, keep in mind that if you’re in an accident, or your car is vandalized or stolen, you’ll have to pay for your car to be repaired or replaced. As we’ll explain below, liability insurance coverage doesn’t pay for damages to your car.
Am I required to have more than liability car insurance?
You might be. It depends on where you live, whether your vehicle is financed or leased, and sometimes your driving history. Some states also require no-fault insurance (also referred to as personal injury protection or PIP) and/or uninsured motorist insurance coverage as part of the minimum required financial responsibility. Talk to a Direct Auto & Life Insurance agent to learn more about the requirements in your state.
No-Fault/Personal Injury Protection (PIP) helps pay, within state specific limits, for certain medical, hospital, funeral, and/or work loss expenses incurred by you, other passengers in your covered vehicle, and pedestrians if struck by your covered vehicle, regardless of who is at fault.
Uninsured Motorist Coverage helps pay for bodily injury and, in certain states, property damage sustained by you and other passengers in your covered vehicle in an accident for which the person legally liable does not have auto liability insurance or cannot be identified. In some states it also includes coverage for damages caused by at-fault drivers who have insufficient insurance to pay your claim.
