Since everyone is watching every penny they spend many people are thinking about carrying less car insurance, but most people are not completely sure what is the minimum auto insurance that is permitted. Once they realize what the minimum auto insurance is they wonder if it is a good idea.
The truth is that there is no one right answer. The minimal auto insurance coverage requirement differs by state. All states require you to have a minimal of liability with some personal injury at the absolution minimum, but many states require more and will have a higher personal injury amount. Your best option for finding out what is the minimum amount is to call your current auto insurance policy holder and ask them what the minimum auto insurance coverage requirement is for the state in which you will be registering your vehicle.
Liability will always be one of the items you have to have on a minimum auto insurance policy. This means that should you cause an accident it will cover the damage you did to the other car, but will not cover anything in regards to your car. This can be good and bad for two reasons. First it can cut your car insurance in half and then some. If you are currently paying $100/month and you revise your policy to the minimum auto insurance allowable you may only have to pay around $40.00. This will save you $60.00/month which turns out to be $720.00/year. There could be a much more dramatic difference should you have more than one care on your current policy that you would be able to switch to carrying a minimum auto insurance policy on.
The problem with carrying only liability and not collision on your minimum auto insurance policy is that your car in not covered. If you cause an accident, you are the victim of a hit and run or you are hit by someone without insurance it will be up to you at least for the time being to take care of the damage done. If you currently are driving a much older car that may be only worth a few thousand dollars and you could afford to replace it this is not a bad idea, but if you are driving something newer and expensive than going with a minimum auto insurance policy is not the right choice for you.
