Basic auto insurance. Liability. State minimum. Bare-bones car insurance. It may go by different names, but minimum auto insurance generally does one thing: Help you stay legal on the road. There are many ways to find cheap auto insurance rates, and minimum auto insurance is one of them!
Pros of Minimum Auto Insurance
It's better than having no insurance at all. Nearly every state requires car insurance. Things are a little different in New Hampshire, but for the most part, driving without auto insurance is illegal. Minimum auto insurance is the least amount of insurance coverage you can have while still meeting your state's mandatory car insurance liability laws.
It can be right for older vehicles. If your vehicle is so old (or has so many miles on it) that you probably wouldn't repair it in the event of an accident, minimum auto insurance could be a good idea for your situation. Minimum auto insurance doesn't include optional coverages, like comprehensive and collision, that would help pay for your car be repaired or replaced in the event of an accident or other covered damage. If you wouldn't replace your car anyway, why pay for more coverage than you need?
It can lower the cost of owning a car. Including insurance, registration fees, gas, and maintenance, the cost of owning a car can add up quickly. If you're looking for ways to cut back on your overall car expenses, going with minimum auto insurance (as opposed to piling on optional coverages) could help.
It puts you in control of car repairs after an accident. If your car is damaged in an accident or natural disaster, there's a good chance you'll be paying for it to be repaired or replaced. That’s because minimum auto insurance doesn’t include comprehensive and collision. Sound like a drawback? Maybe not. With minimum auto insurance, you’re in control of who repairs your car, when the work is completed, and which repairs are made. You can even do the repairs yourself!
It could be right for people who rarely drive. You need car insurance whether you drive five miles a week or 500. If your car spends more time in your driveway than it does on the road, you could save money by choosing the minimum amount of car insurance. Generally speaking, that's because the less you drive, the less likely you are to be involved in an accident and file a claim (and the greater your chances of being eligible for a low mileage discount!).
So, should you buy minimum auto insurance? There’s no “one size fits all” answer. In the end, the "right" amount of car insurance varies from driver to driver and state to state. If you're looking to lower your rates but not your coverage, talk to an agent about changing your deductible. You may be able to save money on your premium by choosing the highest deductible you can afford, or by paying more money up front.
Friendly Direct Auto & Life Insurance agents are available online, over the phone, and in-person to help you understand minimum auto insurance. Call 1-877-GO-DIRECT (1-877-463-4732), get a minimum auto insurance quote online, or come in to a Direct Auto location near you to learn more!