Is the minimum car insurance good?

Meta: Have you ever heard about the minimum car insurance? What are its pros and cons? Should car owners buy it? Keep reading my today article.


There is no doubt that car insurance is very expensive. However, there are still some feasible ways for you to save this expense. One of these ways is to choose the most essential minimum amount that each state requires owners to have legally. Of course, this minimum car insurance is much cheaper than the full coverage car insurance. Nevertheless, before opting for the minimum one,  you need to have basic understandings about it.

Pros of having minimum car insurance

The most striking benefit of minimum car insurance is it has an affordable cost compared with the full coverage one. Therefore, low and middle incomes can afford to buy it. To drivers who have not had any car accident yet before, purchasing a car insurance can totally help you save up more or less 66%  of the total price compared with the full coverage car insurance.

According to some recent studies, the average price of car insurance to a 30 years old male driver is approximately $1,521. When taking advantage of the minimum car insurance, you can save up roughly $700 per year.

Cons of having minimum car insurance

However say there are two sides to everything and apparently, having a minimum car insurance is not an exception. Because minimum car insurance is cheaper than the full coverage one, it does not cover all aspects. When you have a car accident unexpectedly, you may not get enough compensation from the car insurance company as you want.

In some states, you have purchased a minimum car insurance, you only have enough money to make up for the victim of a car accident. Of course, if you are injured is damaged or the car is damaged, the car insurance company does not pay for these.

Nonetheless, there are still some states having a good mechanism for minimum car insurance. This means car owners can have money for damage and medical payment, but only 12 states in the US have this. At the meantime, you only receive a negligible amount of money when living in other states.

You can choose minimum car insurance

There are 2 main groups of people who can get out from the minimum car insurance you should consider carefully.

The first group includes owners having health insurance. If you are injured in a car accident and do not have personal protection insurance, it is necessary for you to utilize your health insurance to pay for medical bills. However, there are some that a minimum car insurance does not cover for you. Therefore, you have to take this point into consideration.

The second group is cars having low cost. You have to bear this in mind as I know so many car insurance companies do not tell this to car owners. When using the minimum car insurance, you do not receive any money if your car's price is under thousands of dollars. I'm so many people will be surprised but it is the rule.

Some cases in which choose the minimum car insurance

If you drive others people for a long time and a long distance, you may not get enough money for compensation. Therefore, you should focus much on this point.

When your insurance is not enough for compensation, the affected individual can sue you. If your bank account is as much as 400k, compensation can be cut down automatically.

Last but not least if you have a high-cost car, I highly recommend you to choose coverage for collision and comprehensive as you can get wanted insurance. When your car is damaged by accident and has enough money to repair it.


General speaking, when you buy a car in the US. It is very essential for you to pick up a car insurance too. However, I think the minimum car insurance can be proper for you if you do not go a long distance. Of course, there are two sides to everything. And, the minimum car insurance is not an exception. You should take it into consideration before deciding to buy it. I hope that my today article can help you have a better choice.

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