Why Just Liability Is Acceptable When Insurance Is Required By Law
States that have made it mandatory for all drivers to carry auto insurance have varying expectations of how much insurance you should carry. In many states, liability insurance is the minimum requirement for drivers. It is also the acceptable level of insurance in these states. Here are the reasons why.
Federal Poverty Levels in These States Are High
No two ways about it; insurance on a vehicle is expensive. For many families in the states that only require liability coverage, such insurance is a big chunk of their income. The state government attempts to balance the law requiring car insurance with what people can pay. Hence, liability alone, which is often the cheapest car insurance option, is something that, statistically speaking, families in these states can manage financially.
Most of the Accidents Are Minor
Most of the accidents in these states are minor. They range from fender benders to crunched side panels, and maybe some property damage or injuries. Fatalities are low, and severe injuries are not as common. Liability coverage from several of the local and regional insurance companies easily covers most of what happens on the roads and highways of these states.
Required Insurance as a General Blanket Is Legally Met
While these state governments require car insurance, they do not mandate full coverage. It is a "blanket law" that just simply states that car insurance is required. That means that liability insurance easily and legally meets the general requirement set forth by law.
You Can Get Liability Insurance with Higher Coverage
The most basic liability coverage is the cheapest insurance, but you can get liability insurance with higher coverages and a larger price tag. If you are on the road frequently, you have a higher risk of getting into a more dangerous accident. The varying levels of liability coverage not only meet the legal requirement for insurance but also allow you to choose greater coverage if you want it and can afford it.
If You Cross State Lines, You Are Covered Regardless
Let's say you have liability insurance to meet your state's car insurance requirements. If you cross into another state, you are still covered, since you do have insurance on your vehicle. Even if that state requires liability and collision, you still meet some of the legal requirements. Ergo, you are less likely to get into trouble than if you had no insurance on your vehicle at all as you cross state lines.