Auto Insurance Requirements and Regulations

There are a lot of aspects to consider when you are buying a car insurance policy. Aside from the insurance coverage, the company behind the particular insurance deal, and of course the insurance premium you need to pay in order to enjoy the benefits, you must also review the local car insurance requirement and buy the right policy accordingly.

Understanding the auto insurance requirements and local regulations is relatively easy to do. You can find out more about the local regulations by contacting the state insurance commissioner or simply visiting FSA’s website for more information.

In terms of insurance requirements, every state sets the limit differently. The minimum car insurance requirement in California, for example, is set at $15,000/$30,000/$5,000. The first number represents the maximum amount of bodily injury coverage each person can claim in the event of an accident; in this case, each person can get up to $15,000 in personal injury coverage.

The second number refers to the total amount of bodily injury coverage you can claim for a single accident. If two people are injured in the accident, each can claim the maximum $15,000 coverage amount for a total of $30,000. If three people are injured, each person can only claim a maximum amount of $10,000. Should the claimed amount for each person in more than $10,000, whoever files for the claim first gets the coverage.

The third number, on the other hand, explains the required coverage amount for property damage in the event of an accident or the collision coverage. For this example, the coverage amount is set at $5,000.

Most insurance companies based near you will automatically comply with the state insurance requirements. There is no doubt that you will be able to find an affordable car insurance, especially since you can utilize discounts and special offers to reduce the premium.