The answer to your question depends on which state you live in. Most states require that you have an auto insurance policy that is currently in force when registering your vehicle. You must have at least the minimum amount of car insurance your state requires to register your car with the DMV. You will need to show proof of insurance, such as an insurance card or a printout detailing your coverage, when you register your car.
However, there are seven states where you don’t need to show proof of insurance to complete your vehicle registration. Those states are Arizona, Mississippi, New Hampshire, North Dakota, Tennessee, Washington and Wisconsin. But keep in mind that all states except for New Hampshire still require basic liability coverage to operate a vehicle. New Hampshire requires proof of financial responsibility instead.
How much is the minimum amount of car insurance in my state?
The minimum amount of car insurance you need depends on which state you live in. Each state has its own minimum liability insurance requirements that cover the bodily injury and property damage you cause to others in an accident. Some states also have additional requirements, such as personal injury protection(PIP) oruninsured/underinsured motorist coverage(UM/UIM).
Here is a table of the minimum car insurance requirements by state for 2023:
| State | Minimum Requirements |
|---|---|
| Alabama | $25k bodily injury liability per person $50k bodily injury liability per accident $25k property damage liability per accident |
| Alaska | $50k bodily injury liability per person $100k bodily injury liability per accident $25k property damage liability per accident |
| Arizona | $25k bodily injury liability per person $50k bodily injury liability per accident $15k property damage liability per accident |
| Arkansas | $25k bodily injury liability per person $50k bodily injury liability per accident $25k property damage liability per accident |
| California | $15k bodily injury liability per person $30k bodily injury liability per accident $5k property damage liability per accident |
| Colorado | $25k bodily injury liability per person $50k bodily injury liability per accident $15k property damage liability per accident |
| Connecticut | $25k bodily injury liability per person $50k bodily injury liability per accident $25k property damage liability per accident $25k uninsured/underinsured motorist coverage per person $50k uninsured/underinsured motorist coverage per accident |
| Delaware | $25k bodily injury liability per person $50k bodily injury liability per accident $10k property damage liability per accident $15k personal injury protection per person $30k personal injury protection per accident |
| Florida | $10k bodily injury liability per person $20k bodily injury liability per accident $10k property damage liability per accident $10k personal injury protection |
| Georgia | $25k bodily injury liability per person $50k bodily injury liability per accident $25k property damage liability per accident |
| Hawaii | $20k bodily injury liability per person $40k bodily injury liability per accident $10k property damage liability per accident $10k personal injury protection |
Note that these are the minimum amounts required by law, but they may not be enough to cover the full cost of an accident. You may want to consider buying higher amounts of coverage or additional types of coverage to protect yourself and your assets better.
What are the benefits of buying higher amounts of coverage?
The benefits of buying higher amounts of coverage are that you can protect yourself and your assets better in case of an accident. If you cause an accident, you might be responsible for any costs associated with it, such as legal fees, medical expenses, lost income, and property damage. If these costs exceed the limits of your coverage, you will have to pay the difference out of your own pocket. This could put you in financial hardship or even bankruptcy.
By buying higher amounts of coverage, you can reduce the risk of paying out of pocket and ensure that your insurance company will cover most or all of the costs. This can give you peace of mind and save you money in the long run. However, buying higher amounts of coverage also means that you will pay more for your insurance premiums. You will have to weigh the benefits and costs of buying higher amounts of coverage and find a balance that suits your needs and budget.
Do i need insurance before i buy a used car ?
The answer to your question depends on where and how you buy the used car. Every driver is legally required to have a minimum level of insurance according to most state laws, so you should remember this when buying any used car.
If you buy a used car from a private seller, you may be able to purchase it without an insurance policy. However, you will still need to have insurance before driving the vehicle or registering it with the DMV. You can either buy a new policy or transfer your existing policy to the used car before driving it.
If you buy a used car from a dealership, you will need to show proof of insurance before buying the car and driving it off the lot. The dealership will also help you with the registration and title transfer process. If you are financing the car through the dealership or a lender, you will likely need to have full coverage insurance, which includes liability, collision, and comprehensive coverage. This is because the lender or dealer has a financial interest in the car until you pay off the loan.
Therefore, it is always a good idea to shop for insurance quotes before buying a used car. This way, you can compare different rates and coverage options and find the best deal for your needs and budget. You can also avoid any delays or surprises when buying the car.
How do I transfer my existing policy to a used car?
To transfer your existing policy to a used car, you will need to follow these steps:
- Visit the Regional Transport Officer (RTO) and fill up an application to transfer the ownership of the car by transferring the RC of the car on your name.
- Submit all the documents required, such as proof of identity, address, insurance, etc.
- Once the RC has been transferred to your name, fill up a fresh proposal form with your new car’s details and submit it to your insurance company.
- Pay the policy transfer fee, which may vary depending on your insurer and the type of policy you have.
- Your insurance company will issue a new policy document with your new car’s details and coverage.
Alternatively, you can also transfer your existing policy online through your insurer’s website or app, if they offer this option. You will still need to visit the RTO and transfer the RC of the car on your name before transferring the policy online.
Can I change my coverage or add-ons when I transfer the policy?
Yes, you can change your coverage or add-ons when you transfer the policy. You can either increase or decrease your coverage limits, deductibles, or optional coverages, such as roadside assistance, rental reimbursement, or gap insurance. However, keep in mind that changing your coverage or add-ons will also affect your premium amount. You may have to pay more or less depending on the changes you make.
If you want to change your coverage or add-ons, you should inform your insurance company when you fill up the fresh proposal form. They will give you a revised quote based on the changes you request. You can then decide whether to accept the new quote or look for a different policy.