The minimum amount of car insurance you'll normally need is state-mandated liability coverage. This allows you to pay for some, if not all, of the injuries and damages you're responsible for in an accident. Minimal coverage auto insurance is often cheaper than a full-coverage policy, which provides additional protection for your vehicle, so it can be a way to save on insurance premiums. However, keep in mind that giving up traditional car insurance is often a much more expensive option in the long term or if you're involved in an accident.
Count on the minimum auto insurance coverage requirements that you must meet if you want to legally get behind the wheel. In some states, car insurance with minimum coverage also includes PIP coverage and coverage for uninsured motorists, which can help you pay for your injuries in a variety of scenarios. However, you must confirm with your car insurance company or agent that you are covered in Canada before crossing the border. NerdWallet has compiled the minimum requirements by state so you can quickly and easily find the amount of car insurance you need to drive legally.
Auto insurance is designed to protect your finances from the consequences of car accidents, so having a policy that fits your needs, even if it's more expensive than the minimum requirements, can save you from financial devastation should the worst happen. In terms of types of coverage, a minimum auto insurance policy usually includes liability coverage for bodily injury and property damage, and provides the minimum amount of coverage you should have in that state. These measures help reduce the cost of injuries to you or your passengers if you are ever hit by a driver who doesn't have enough or any car insurance. For example, if you don't have adequate health insurance or health coverage through your car insurance policy, it might be worth adding. Even insurance companies will tell you that reducing collision coverage makes sense when your car is worth less than a few thousand dollars.
There are many additional optional coverages available, such as rent reimbursement, which covers the rental of a vehicle if the vehicle is in the garage after receiving a covered claim, roadside assistance or trailer insurance, and comprehensive coverage, which covers the repair or replacement of broken window glass without a deductible. For most drivers, it's simply easier to meet minimum state auto insurance requirements than to take out alternative insurance, and it's certainly less risky. This means that car insurance coverages and limits that work for a friend or family member who lives elsewhere may not be right for you. It's also important to note that, unless your state requires coverage for property damage to uninsured drivers, car insurance with minimum coverage doesn't pay for the repair of your vehicle, whether you're at fault or not.
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