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Each state has different guidelines on the minimum requirements for car insurance. In this regard, it is necessary to check the minimum requirements in your local state before applying for one. You might even get a copy of some insurance companies that are worth checking. Just keep in mind that you already have a tool now that you can use to your advantage and you do not need to jump right into it the minute someone recommends a plan or a company.

One of the questions that you might ask is what coverage you really need besides the state requirements? Below are some of the differences between the different plans. As one expert pointed out, a plan is, in fact, a collection of coverage, so with this in mind, you will be able to identify which of the following points are necessary for you to have.

Liability coverage

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This is when you are proven to be at fault in the accident and liabilities and other expenses need to be insured such as the injured people in the other car. Note, however, that this does not include you or your passengers in your car.

Bodily Injury Liability or BIL

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This covers the medical costs incurred resulting to injuries in the mishap where you are proven to have caused the accident. This policy typically has a particular min and max amount of coverage based on the number of injured people.

Property Damage Liability

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This covers the cost incurred to fix the damage in a vehicle caused by an accident where you are proven to have caused the mishap. This also has a particular limit.

Personal Injury Protection (PIP)

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This plan insures you and the people in your car when the accident happens. In some cases, absences from work due to the accident will be paid by this coverage.

Uninsured/underinsured motorist coverage

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This is to cover costs incurred from getting hit by someone who does not have insurance or only has minimal plan.


This insures the damage to your car due to an accident.


This is the plan protecting you should your car gets damaged, but not in an accident or if it gets stolen.

With this information, you will be able to ponder on whether you need a particular coverage or not. Keep in mind that you will need to base your decision on your state’s minimum requirements to avoid any penalty.

The best way to come at a decision is to compare insurance quotes. Especially if you are keen to obtain a full coverage car insurance, comparing insurance quotes online with the same type of proposal would effectively show you their standard premiums and guidelines. Calling the company by inquiring about modifying the plan or the premium is also a good step to get a plan that will work best to your interest.

Some of the factors that might improve your premium are when you have a good credit score, very minimal traffic tickets or you are proven to be responsible enough to keep out of accident.

Please don’t hesitate to ask us if you have some comments or feedbacks regarding this topic. You are free to post your message below.