What is the Minimum Auto Insurance I need to carry?

By admin | Published: January 4, 2009

Times are tough and people have no choice but to cutback on all their expenses including insurance. Reducing your auto insurance cost can be risky but if you have no other choice then consider carrying the minimum coverage as required by the state you live in. If you need to find a low cost car insurance carrier start here, Cheap Auto Insurance Quote.

All states require that you carry bodily injury and property damage coverage. As an example I live in California and the minimum coverages for auto insurance are 15/30/5. This means the maximum my auto insurance will pay is $15,000 for each person injured, and a maximum of up to 30,000 paid per accident. The last number, $5,000 would be the maximum paid for property damage as a result of an accident.

Most likely, you are paying for additional coverage that was recommended by your insurance agent or insurance provider. While these additional coverages may provide you with maximum protection, they are also costing you up to several hundred dollars more per month. If you reduce your coverage to the state limits you may only pay a fraction of your current cost. If you get into an accident carrying only the state limits may not provide you with adequate protection. Reducing your auto insurance to the minimum coverage is only recommended as a last alternative. If your financial situation improves you can always increase your coverage later.