Minimum Requirements

States Minimum Requirements Of Coverage

You are required in most states to have at least liability coverage before you get behind the wheel. Some states require other coverages, such as no-fault coverage, if you live in a no-fault coverage state. Each state sets its own coverage minimum.

While your policy needs to have at least the minimum coverage, it is wise to carry more in most cases. The majority of auto insurance policies don't provide enough protection in an accident.

Auto Insurance

How Does An Auto Insurance Company Decide What To Charge?

The process Insurance companies use to determine whether to sell you a policy and how much to charge you for that policy is called underwriting. Companies consider these following things when deciding your auto insurance policy:

  • Your Age
  • Your Credit Score
  • The kind of car you have
  • Your Claims history
  • Your driving record
  • Where you keep your car

All of these things are taken into consideration by the insurance company before determining an annual rate for you.