Standard Auto Insurance Coverage: Everybody Needs It

Standard auto insurance coverage is the bare minimum amount of coverage that you should have before operating a motor vehicle. All states mandate a certain minimum set of coverages that motorists must have before they are eligible to drive. All states require that motorists carry proof of current insurance with them at all times when operating a motor vehicle. This article details some of the most commonly required standard auto insurance coverage.

The basic standard auto insurance coverage required by all states is liability insurance (the exception for this might be states that support "no fault" auto insurance coverage, but that is a topic for another article). In general, liability insurance covers damage or injury to other people that are a result of an accident in which the insured driver is determined to be at fault.

There are two broad categories of liability insurance. The first type is bodily injury liability insurance coverage. Most bodily injury auto insurance coverage policies provide a set amount of money to cover damages due to bodily injury to other vehicle occupants. These damages can include medical expenses, lost wages, and, in some cases, supplemental damages for pain and suffering. Most bodily injury liability policies specify a maximum amount that they will pay for one person and a different, larger, amount that is the maximum that will be paid to everyone involved in the accident (with the exception of the insured). The other type of liability auto insurance coverage provides protection against the costs of property damage. This includes damages to another vehicle or damage to property on which the accident occurred.

If the insured only has liability insurance and suffers an injury in an accident in which he or she is determined to be at fault, or if the injury occurred in an accident with an uninsured driver, he or she will not be granted funds to cover the costs associated with the injury. Personal injury coverage provides protection to motorists in the case of personal injury without regard to who was at fault in the accident. Personal injury covers the insured individual, and covers the costs of medical care, lost wages, and other associated expenses.

Nothing is more disheartening than to find yourself in an accident at which you are not at fault yet you receive no compensation because the other driver does not have adequate insurance to cover your injuries and property damage. To avoid this unfortunate situation, motorists should consider purchasing underinsured and uninsured motorist insurance. Underinsured motorist insurance provides monetary compensation when the other party does not have sufficient coverage to cover all of the costs to the insured driver. Uninsured motorist auto insurance coverage provides the same kind of protection against drivers that have no insurance coverage whatsoever.