Every year, more than two million people are injured in car accidents in the US.
Often the person injured is the driver at fault, but there are thousands of cases where the person or persons injured were the innocent parties.
If you injure another person in a car accident that is your fault, then you may be liable for the costs of their medical care. Depending on the severity of their injuries, they may need ongoing treatment which can be very expensive.
Car insurance will cover you for this kind of liability, but how much car insurance is enough?
Read on as we take a closer look at how much insurance cover you need to have.
What Are the Legal Requirements?
The amount of insurance that you are required to take out will depend on which state you live in. New Hampshire is the only state that does not legally require you to purchase auto insurance.
Each state sets its own minimum requirements for insurance cover. Some states have more stringent requirements than others, but most of them require you have a minimum amount of coverage in three key areas.
Bodily Injury Liability For One Person
Bodily injury liability refers to how much your insurance will pay out if you injure someone in another vehicle during an accident. It does not cover you or anyone in the car you are driving; it is only applicable to the vehicle or vehicles that you hit.
Bodily injury for one person refers to the amount that your insurance will pay out for injuries sustained by an individual in an accident. The lowest minimum is $15,000 in states such as New Jersey, Delaware, and Arizona. If you live in Alaska, you will need minimum bodily injury liability insurance for one person of $50,000.
Bodily Injury Liability for All Injuries
This cover is very similar but relates to the amount that your insurance will pay out for all injuries sustained in an accident. As with the liability for one person, it does not apply to you or anyone in your vehicle.
The lowest minimum coverage is in Delaware where you only need a minimum of $25,000 of bodily injury liability insurance for all injuries. Alaska is once again the highest, requiring at least $100,000 of cover.
Property Damage Liability
As well as injuries to other drivers and their passengers, you are likely to cause damage to other vehicles, and possibly buildings or other structures. Property damage liability covers money that you owe for causing this type of damage.
This can be as low as $5,000 in California, Massachusetts, New Jersey, and Pennsylvania. The figure can go as high as $25,000 in states such as Alabama, Nebraska, North Carolina, and yes, you guessed it, Alaska.
What Other Types of Insurance Are There?
These are the legal minimums required in most states. Some states also require you to have insurance in some of the following areas too. Even if these types of insurance are not required in all states, we would strongly recommend considering taking them out.
Collision Insurance
All the types of insurance we have looked at so far are to cover other people, or other cars or property.
Collision insurance covers the cost of damage to your own vehicle, whether the accident is your fault or not. It means that if you are in a crash, you will get at least some money back towards repairing or replacing your car.
Personal Injury Protection
Personal injury protection insurance is intended to cover medical costs for you and your passengers in the event of an accident.
It may also cover some of your lost wages if you are unable to work due to an injury sustained in the accident. Some states, such as Florida, Hawaii, and New York, require you take out this kind of insurance.
In Utah, the required minimum is as little as $3,000. In New York, you are required to have a minimum of $50,000 cover for PIP.
Medical Payments
Medical expenses cover is similar to PIP in that it covers the cost of medical care for you and your passengers in the event of an accident.
Unlike PIP, it won’t cover anything beyond your direct medical expenses, so if you miss work due to your injuries, medical payments insurance won’t be able to help. Maine and Pennsylvania have legal minimum requirements for medical payments coverage.
Uninsured and Underinsured Motorist Insurance
According to estimates, as many as one in eight drivers may be uninsured.
If you’re hit by an uninsured driver, they will have no insurance to cover any damage to your car or injuries sustained by you or your passengers. Uninsured and underinsured motorist insurance will help to cover some of your costs if this is the case.
It is required by law in states such as Connecticut, Illinois, and Minnesota.
Comprehensive Insurance
All of the insurance mentioned so far has related to auto accidents.
If your car sustains damage in another way, such as a fire or a hailstorm, comprehensive insurance will help to cover some of the costs. It can also cover the theft of your car, so it’s something that we would definitely recommend taking out.
Now You Know How Much Car Insurance Is Enough
Now that you know how much car insurance is enough, all you need to do is find the perfect place to buy some.
North Carolina requires minimum liability coverage of 30/60/25. That means you need coverage of at least $30,000 for bodily injury liability for one person, $60,000 for bodily injury liability for all parties, and $25,000 for property damage liability.
At Amistad Insurance Services, we will guide you through the process and help you find the best auto insurance in North Carolina. Our team provides honest, dependable, and customer-oriented insurance services for our clients in Raleigh, NC. Since we’re NC based, you can be sure that your insurance will always meet minimum state requirements.
Request an auto insurance quote from us today!
