Auto insurance standard coverage is the minimum amount of protection required by law to operate a vehicle within a particular state. Most US states have a mandatory level of auto insurance coverage that must be purchased and failure to do so can lead to heavy financial penalties and negative entries onto a driving record.
Most states split auto insurance standard coverage into several different key areas. The most important of these is bodily injury liability and this particular form of auto insurance covers costs when third party drivers are injured as a result of an at-fault accident in most Tort states. In no-fault states, bodily injury liability coverage protects the policyholder as all motorists are obliged to make claims on their own auto insurance policies.
Road users are also expected to purchase property damage liability. This type of auto insurance coverage covers the cost of damage to third party vehicles and property in Tort states although, once again, this will vary in no-fault states where responsibility for an accident isn’t assigned.
Personal injury protection is a common feature in many Tort states and this level of coverage offers financial security for policyholders who are injured as a result of their own driving actions. Personal injury protection covers the cost of medical treatment, loss of earnings and domestic help. It also covers passengers travelling in the vehicle of the policyholder at the time of a road traffic accident.
Uninsured and underinsured motorist coverage is also a requirement in many US states although drivers are advised to check with their local Department of Motor Vehicles to see if this particular form of auto insurance is mandatory.