What Is the True Meaning of “Minimum Coverage” in Auto Insurance? 

Understanding what “minimum coverage” means is essential for anyone purchasing insurance. At Cavender Insurance Agency, we believe it’s important for our clients to know not just what the law requires, but also what those requirements actually cover, and what they may leave exposed.

What Does “Minimum Coverage” Mean?

Minimum coverage refers to the least amount of insurance required by state law for certain types of auto policies. For example, drivers must usually carry liability insurance that meets the state’s minimum limits. This coverage is designed to pay for injuries or property damage you cause to others in an accident. Some states may also require minimum levels of other insurance, such as uninsured motorist coverage and medical benefits.

What Does Minimum Liability Coverage Include and Exclude?

While minimum coverage satisfies legal requirements, it’s important to understand its limitations. Minimum liability insurance only covers damages or injuries you cause to others. It does not pay for:

• Damage to your own vehicle
• Your own medical expenses
• Theft, vandalism or weather-related losses

Why Consider More Than the Minimum?

Relying solely on minimum coverage can leave you financially vulnerable. If you’re involved in a serious accident or face a large claim, costs can quickly exceed the state-mandated limits, leaving you responsible for the difference. Additionally, common exclusions, such as intentional damage or business use, may not be covered at all.

How Our Team Can Help

At Cavender Insurance Agency, we help you understand your insurance options and obligations. We review your needs, explain policy details and help you choose coverage that fits your situation, not just what’s required by law.

Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.