ccasionally we have to review our auto insurance, making sure we are getting the best coverage for what we really need. Especially with having teenage drivers, auto insurance can be very expensive! There are times we are quite reluctant to have full coverage car insurance because of the high cost of it. Yet, with newer vehicles, it is absolutely necessary! And for many states, there are requirements.
In my state of Michigan, it is required to have no-fault insurance. The minimum limits of coverage that everyone must have is $20,000 for a person who is hurt or killed in an accident; $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. This is often referred to as 20/40/10.
Yet, other states can be different. For instance, in Maryland the accident rate is high. Their insurance rate is referred to as 20/40/15, so they are required to carry at least $20,000 in bodily injury liability per person, minimum $40,000 total bodily injury liability per accident and a minimum $15,000 for property damage liability limit per accident. In Maryland they do not have a “no fault” insurance and is then is responsible for all the damages and the at-fault person’s insurance company pays. Maryland is referred to as a Tort state and most insurance companies recommend that driver’s carry higher coverage than the state minimums.
Of course, when getting insurance, I want it to cover us and any I would get in an accident with, especially if I am at fault. I imagine this would be even more so in states like Maryland. It’s a great concern anyway letting teenagers drive, but even more so if they would hurt someone else. I want an honest, reputable insurance company that will stand beside me and help me, and certainly not look for every and any way to get out of paying. I am thankful that it is possible to find such a company!