Recommended Auto Insurance Coverage for All Drivers

What is the recommended auto insurance coverage level for all drivers? In states where insurance is a legal requirement, insurance companies must offer at least this level of protection to all its customers. A driver can limit the amount of coverage he or she is carrying to the minimum amount required under state law, but this is lower than the recommended level of coverage to help ensure that drivers are not leaving themselves open to being personally responsible for paying damages to injured people following an accident.

To provide the right level of protection, drivers should consider having $100,000 in bodily injury liability protection in place to pay for a single accident victim’s injuries and $300,000 to cover all personal injuries resulting from the same accident.

Recommended auto insurance coverage for property damage protection is $100,000. In some states, the minimum level of coverage required by law is as low as $15,000. Since property damage covers repairs to public property as well as the other driver’s vehicle, buying a policy with a higher limit makes good sense. The cost to repair or replace a guard rail, light stand or sign post can be high and a policy with a low level of protection may not be enough to cover them.

In a no-fault state, drivers must also buy Personal Injury Protection coverage. This is the part of the policy which pays for the policyholder’s medical bills if an accident occurs. A person who has a medical insurance plan can buy the minimum amount required by law.