Why It’s Wise to Buy More Than the State Minimum for Your Auto Insurance

State minimum auto insurance levels are designed to provide drivers with basic protection in the event of an accident. In Folsom, CA, the minimum required coverage includes $30,000 for bodily injury or death to one person, $60,000 for bodily injury or death to multiple people in the same accident, and $15,000 for property damage. These limits represent the maximum amounts your insurance company will pay for injuries and property damage caused to others. T.D. McNeil Insurance Services can help you design a policy that offers more comprehensive protection.

Why State Minimum Coverage Is Insufficient

While state minimum insurance allows you to operate a vehicle legally, it provides limited protection if you are found liable in an accident. The average cost of a motor vehicle accident in 2024 ranged between $5,000 and $6,000, which typically covers damages to your own car. However, costs can quickly escalate if you are responsible for damage to another driver’s vehicle. If injuries occur, especially severe ones, expenses can reach hundreds of thousands of dollars. Without adequate insurance, you may face lawsuits from injured parties.

Managing Premium Costs

Drivers on tight budgets often opt for minimal insurance policies, believing it will save them money. However, these drivers are the ones who can least afford the financial risks associated with insufficient coverage. To keep premiums low while maintaining better protection, consider raising your deductibles for collision and comprehensive coverage. This approach reduces your financial risk and can save you money compared to relying solely on a state minimum policy.

Protect yourself with a tailored auto insurance policy in Folsom, CA, by scheduling a consultation with T.D. McNeil Insurance Services.