If you’re in the process of getting auto insurance quotes to compare between, then you probably have a lot of questions. Which company is the best? What do all those car insurance terms mean? And how much auto insurance do you really need? Well, we’re here to help.
The legal minimum of auto insurance required varies from state to state, and it’s written in this type of format: number/number/number. For example, Colorado’s minimum car insurance is 25/50/15. Those three numbers represent the maximum amount of money that an insurer will pay in the event of an accident involving property damage or bodily injuries.
The first two sets of numbers refer to the amount that an insurance company will pay related to bodily injuries. The first set of numbers indicates the maximum amount the insurer will pay for bodily injuries per individual, and the second set of numbers refers to the amount that is payable for all the injuries resulting from a car accident. Therefore, looking at Colorado’s numbers, $20,000 is payable for bodily injuries per individual, and $50,000 is payable for bodily injuries per auto accident.
The final set of numbers refers to the amount that an insurance company will pay related to property damage. Again referring to Colorado’s requirements, $15,000 is payable for property damage.
By looking up your state’s minimum auto insurance requirements, you will know exactly what you need in order to be on the road legally. However, before you decide to just get the minimum, you should be aware that most insurance companies recommend that you obtain a policy that will cover $100,000 in bodily injuries and $300,000 per accident. Before you make a final decision, talk to an insurance agent and be sure that you fully understand the consequences of only going with your state’s minimum amount.