Buying the state minimum is the cheapest way to be legal, but it is often the riskiest way to drive. The savings can vanish after a single serious accident.
What minimum coverage leaves out
- Your own car: no collision or comprehensive, so you pay for your own repairs.
- Your injuries: liability only pays for the other party.
- Costs above the limit: if you cause damage beyond your low limits, you pay the rest personally.
A quick example
You carry 25/50/25 and cause an accident with $60,000 in injuries. Your insurer pays the first $50,000, and you are personally responsible for the remaining $10,000, plus any property damage above $25,000.
The exposure
Above-limit damages can lead to lawsuits, wage garnishment, or liens on your assets.
A safer middle ground
Higher liability limits like 100/300/100 often cost only $10-$25 more a month, and adding UM/UIM protects you against uninsured drivers. For most people, that small increase buys outsized protection.