{"id":353009,"date":"2016-04-04T10:46:35","date_gmt":"2016-04-04T15:46:35","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/automobile-insurance-policy-coverage.html"},"modified":"2024-03-12T10:37:52","modified_gmt":"2024-03-12T15:37:52","slug":"automobile-insurance-policy-coverage","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/automobile-insurance-policy-coverage.html","title":{"rendered":"Automobile Insurance Policy Coverage"},"content":{"rendered":"\n
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Automobile Insurance Policy Coverage<\/h1>\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Regardless of where you live, the law requires that you carry auto insurance. Like it or not, this is a requirement if you choose to drive on state roads. If the police catch you driving without insurance, you’ll receive a ticket and may lose your driver’s license.<\/p>\r\n

A bigger problem is if you get into a car accident<\/a> and don’t have insurance. Not only do you risk having to pay your medical bills out-of-pocket, but you may also become personally liable for damages the other driver suffers.<\/p>\r\n

Here, we’ll explain the different types of car insurance. We’ll also discuss what type of coverage is right for you.<\/p>\r\n

Minimum Insurance Requirements<\/h2>\r\n

State laws require drivers to carry a minimum amount of car insurance coverage. At a minimum, you must have a specific amount of liability coverage. This coverage protects you if you get into an accident and the other driver suffers personal injuries or financial losses.<\/p>\r\n

There are several benefits to having more coverage than the law requires. Of course, the more coverage you want, the higher your insurance premium.<\/p>\r\n

The same is true for deductibles. A deductible requires paying a specific out-of-pocket amount before your insurance coverage kicks in. The lower you want your deductibles to be, the higher your insurance premiums.<\/p>\r\n

In general, the higher your coverage limits, the more your policy will cost. If you are the at-fault driver in a car accident, liability coverage will only pay damages up to a certain amount. For example, your policy may only cover $100,000 for personal injury. You may be responsible for the difference if the other driver has more than $100,000 in medical bills.<\/p>\r\n

There is a chance that the other driver has personal injury protection (PIP). This will help cover some of their medical costs, but there’s still a chance that you could be legally responsible for thousands of dollars in damages. If the other driver files a personal injury lawsuit against you, the judge may order you to pay their damages.<\/p>\r\n

Liability Limits<\/h2>\r\n

Most insurance policies cover damages up to a specific dollar amount. A driver’s insurance company divides coverage limits into different types of damages.<\/p>\r\n

Most insurance policies indicate your policy’s liability limits using three numbers. In New York, the minimum coverage amounts are 25\/50\/10. In California, the minimum coverage numbers are 15\/30\/5.<\/p>\r\n

These three numbers indicate the liability limits for a car insurance policy:<\/p>\r\n