The minimum liability coverage requirements required by law varies by state. For example, the minimum liability coverage limit in California is 15/30/5, while the minimum liability coverage limit in Alaska is 50/100/25. If you don’t want to risk being sued by other drivers for the expenses resulting from an accident, you should consider getting higher limits.
Minimum Car Insurance Requirements by State
In addition to liability insurance, a contractor must have workers’ compensation insurance. Depending on the state law, this coverage may also include employers liability. In addition, the coverage limit for professional liability must be at least $1 million per claim and $1 million in the aggregate. In addition, if you are doing business with state agencies or municipal corporations, you must attach a certification that you are self-insured. This certification will constitute compliance with this section.
While liability insurance pays for damages to other people’s cars after an accident, it doesn’t cover medical expenses. That’s why you’ll need collision coverage and comprehensive coverage as well. You should also consider getting more coverage than the minimum required by your state. If you don’t, you’ll be left paying out of pocket for medical expenses and may be exposed to lawsuits.
Comprehensive coverage pays for damage caused by other causes, such as fires and storms. It does not pay for injuries sustained in a car accident, but it does protect your personal assets. Comprehensive coverage also offers a $500 deductible.