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Minimum Insurance Coverage: What Those Three Numbers Mean

When you’re obtaining car insurance quotes, you’ll often see the minimum car insurance requirements for your state expressed as three numbers separated by slashes. Whether you’re obtaining insurance quotes online or directly from a local broker, these numbers play an important part in determining premiums. Let’s look at exactly what they mean:

Let’s say that while researching insurance quotes online you find that the minimum requirements for your state are 30/80/20:

The first number, 30, represents the amount in thousands of dollars that the insurance company will pay to cover the other driver’s medical bills in the event of an accident. After that, the responsibility lies with the driver who was at fault for the accident. As an insured driver, you have to carry at least $30,000 of this type of coverage.

The second number is the most that an insurance company will pay out to anybody in the other vehicle who was injured. In this particular example, the maximum payout is $80,000, and all drivers must carry this level of coverage.

Finally, the third number is your property damage liability coverage. This will take care of damages to other cars, signs, or structures if you are in an accident. In this example, you must have $20,000 worth of this type of coverage.

Keep in mind when you are comparing car insurance quotes that these numbers represent the minimum coverage you are required to have to legally operate a motor vehicle. You can always decide to obtain additional coverage, although this will likely result in higher car insurance quotes and premiums.

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