Minimum liability coverage in U.S - explanation

Minimum liability coverage, or sometimes referred to as “state minimum”, is the lowest amount of car insurance required by a state. Most states require you to have this coverage for your vehicle in order to legally drive it. Depending on where you live, the minimum amount of coverage can vary considerably.

The most common types of coverage included in minimum liability coverage are bodily injury, property damage, and personal injury protection.

Bodily injury insurance pays for medical expenses and lost wages of the other person if you’re at fault in an accident. Property damage insurance covers any repairs or replacements to the other person's vehicle. And finally, personal injury protection (PIP) pays for your medical bills, lost wages, and other expenses due to an accident. Although minimum liability coverage is the most basic coverage you can get, it may not be enough to protect you financially if you’re involved in a serious accident. That's why it's important to consider additional coverage options like comprehensive or collision insurance that provide more protection.

Minimum liability coverage only covers the other person in an accident

It's also important to understand that minimum liability coverage only covers the other person in an accident, not you or your vehicle. In addition, it won't provide coverage for any damage to your own car or property if you're at fault in an accident. That's why it's a good idea to discuss your specific insurance needs with your provider to make sure you have the right amount of coverage.

Overall, minimum liability coverage is an important type of insurance coverage that can provide some financial protection in case of an accident. It's important to understand what it covers and how much it will cost so that you can be adequately protected on the road.