Car insurance applicants need to be aware of the state insurance laws that regulate their insurance coverage options. If you know what the minimum requirements are, your insurance research will be more effective. Every state in the United States requires a minimum car insurance coverage for bodily injury and property damage. These minimums must be met before a person can register a vehicle or renew a license plate. In some states, the minimum requirements are more extensive than in other states. It is important to understand what kind of coverage you will be required to purchase so that you are prepared to find the proper type of policy. If you do not know what the minimum requirements are, you could end up purchasing more insurance than you really need. Any insurance company that is licensed to operate in your state is not allowed to sell you less than the minimum legal requirements.
Choosing Additional Coverage
Some state insurance laws have regulations regarding the amount of supplemental insurance you are allowed to purchase. Car insurance applicants should talk with their insurance agent about the options they have for increased coverage. Most states require that everyone carry simple liability coverage. You can choose to purchase a comprehensive car insurance policy that will cover more than the legally required minimum insurance. If you plan to buy additional bodily injury or property damage insurance, your state may have a minimum amount of additional coverage that you are allowed to purchase.
Cost of Insurance Based on Coverage Needs
Car insurance applicants need to be able to compare their insurance needs with the legal requirements in order to purchase the most affordable coverage they can find. When you apply for car insurance, make sure you understand the difference between the legally required state insurance laws and the coverage that is supplemental to the legal minimums. If you are insuring a car that is less than three years old, full comprehensive coverage will protect you from any expensive repairs that you may require. It is more cost effective to purchase a comprehensive policy for a new car rather than opt for just the legal minimums.
Before you move to a new state, take some time to research the state insurance laws. Each law has different regulations regarding car insurance applicants. The time to learn about your new state’s minimum insurance requirements is before you need to complete your auto registration with the new state. Many car insurance companies operate in several different states, so you should be able to discuss the legal requirements for your new state with your current car insurance agent. Your agent should be able to recommend a good resource for you.