The Risks of Minimum Auto Insurance Coverage: What You Need to Know
3 Major Downsides of Minimum Auto Insurance Coverage
- Personal Lawsuit Risk:
Drivers with minimum coverage may face personal lawsuits if their insurance limits are insufficient to cover accident costs.
- No Vehicle Repair Coverage:
Minimum coverage does not include collision insurance, leaving policyholders responsible for their own vehicle repairs.
- Rental Car Costs:
Policyholders may need to pay for rental cars out of pocket if their vehicle is damaged or totaled, as minimum coverage typically does not cover rental car expenses.
These drawbacks highlight the importance of evaluating insurance needs and considering additional coverage options beyond minimum requirements to protect against potential financial losses.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.