The best way to pay the least amount of money for your car insurance is to purchase the minimum amount required by your state, and this is a great option if you have a really tight budget. Having at least the minimum car insurance coverage required in your state is legally required for all drivers, and you could face harsh consequences without it. If you are thinking about purchasing the minimum amount of car insurance, you may want to know the following three things.

Why states require insurance

States have the right and responsibility of making and enforcing rules such as auto insurance requirements. The purpose of requiring this is to protect anyone that uses the roads for any purpose. Car insurance covers damage to cars and injuries to people, and it is something every driver should have.

What minimum coverage offers

As a driver, you are free to purchase any type of auto insurance you would like; however, you will need to make sure you purchase at least the minimum amount required in your state. Every state has different rules, so you will need to find out what these rules are in your state. You can do this by looking up the rules online, or you could do this by contacting an insurance company and asking an agent.

The minimum coverage you must get may include one or more of the four basic types of auto insurance coverages. The first type is called bodily injury coverage, and this covers injuries caused to other people if you are at fault for an accident. The second type is called property damage, which is designed to cover the damage you cause to another person's car. Personal injury protection is a third type, and this can cover a variety of different types of losses a person might experience from an accident. The final type is called uninsured coverage, and this protects you if someone without insurance causes damage to your vehicle.

Why minimum coverage is not always the best option

Having minimal coverage might be acceptable from a legal standpoint; however, it may not give you enough coverage when you need it. Minimal insurance coverage generally protects only the other party of an accident if you are at fault, and it most likely does not cover your own damages. In addition, if you have a loan on your car, you will probably need more coverage than what your state requires.

Having car insurance is a necessity if you plan on driving, but there are ways to save money on it. If you would like a quote for coverage, contact an auto insurance company like United Insurance Agency Inc.