Are you aware of your your state’s auto insurance requirements? Every state has them and it’s your responsibility to ensure you are in compliance. Failure to carry the minimum coverages can result in fines, license suspension, even jail time!

Besides the legal ramifications, consider the financial ones too (which are many). Lack of auto insurance does not mean a driver is going to get off scott-free if they are the cause of an accident. Among the possibilities, one can have their wages garnished by court order until full restitution is made for the injuries and property damage they’ve caused. Obviously, this could ruin someone financially if they are uninsured or underinsured.

Indeed, having proper auto insurance coverage is not to be taken lightly. But take heart as we’ve just published a state-by-state listing of current auto insurance requirements, as well as provided the links for each state’s insurance regulation agency and, in some cases where available, the relevant DMV link as well.

Now you can rest assured you’re properly covered. And if you’re in the market for auto insurance, this is a great time to take a look and see if there have been any changes to your state’s minimum coverages. Of course, we highly recommend you opt for higher coverages than your state’s minimums. This is for the simple reason that the minimum coverages are not going to be sufficient should you be in a major accident and, of course, it’s the major accidents that we’re really concerned about here, right? After all, if you just have a very minor “fender-bender” in the parking lot, chances are no one is going to be significantly injured and the damage is not going to be enough over your deductible to even make it worth reporting to your insurance company.

It’s the major accidents for which we we really want to be covered and for that, we’re going to need a lot more than the minimums. Many opt to carry $100,000/$300,000 policies and some even add an umbrella policy that covers into the millions. No one can tell you what maximum limits you should obtain. That’s ultimately going to be up to you. But your state can, and has, set minimum auto insurance requirements that must be adhered to.

Safe driving!

This entry was posted on Wednesday, December 23rd, 2009 at 12:24 am and is filed under Auto Insurance Q&A. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.