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The BlueCollarDollar was designed as a personal finance center where
you will find the complicated world of investing and financial planning explained. We take a
common sense approach to the money you earn, your investments (mutual funds, bonds, mortgages), retirement
planning (IRAs, 401(k)s, etc.), insurance, mortgages, and debt. We want you to have a financially
stable retirement, that is both comfortable and healthy.
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All content is © copyright (1998-2004)
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Order your copy of Building Wealth in a Paycheck-to-Paycheck World by Paul Petillo. It is packed with safe, proven wealth-building strategies that cover all the major components of a balanced financial plan, including:
- Straight talk on mutual funds, bonds, real estate, and annuities
- Techniques for avoiding financial disasters
- Tools to help readers track their debt and create a plan for staying out of it
- Road maps to buying a home and saving for college and retirement
Car Insurance
At my house I told each one of the kids (so far three), that when they reach driving age, if they are on the honor roll at their school, I would pay for their insurance. So far, I haven't paid a dime. All three left the house without having gotten their license to drive. For this age bracket, the cost of car insurance is extremely prohibitive. Did my plan backfire?
Auto insurance protects not only the driver but the car they are driving, as well as anyone else who comes into contact with your car from those that hit you in an accident to those that ride with you. Policies also cover theft, vandalism and the occasional natural disaster all for a premium. Every state requires this "financial responsibility" and these states all have insurance minimums
Auto policies break down like this:
Obligations,
Coverage
Rights
Limitations
Obligations come under the heading of deductibles. This are amount of money that you will pay out of pocket before the insurance kicks in. The more you have for your deductible, the lower the overall premium. Deductibles usually come in increments ranging from $100 to $1,000.
Coverage involves the tricky part of insuring drivers. Liability is damage you cause to others and their property. Coverage can include medical payments, damage to your own car, and even protection from uninsured or underinsured motorist who happen to be involved in the accident. The cost of your policy will depend on what type of coverage you opt for. A good agent will factor in statics about you, your car, your driving habits and where you live. There is also the age factor which adjusts your premium downward after twenty five assuming a good driving record.
There is a fine line between enough and not. Most states require bodily injury liability and property damage liability. This should be a minimum of $100,000 per person and $300,000 per accident. Costs of the accident above this coverage would be on your shoulders.
Collision (which protects your car) comprehensive (damage done other than with another car), and uninsured motorist coverage are considered optional in most states. It will be up to you and your agent when figuring the right amount in this instance. No need to overinsure a car with no wholesale value.
Minimum State Requirements
| State |
Type(s) of Coverage Required |
Minimum Liability Limits *
|
| AL |
Bodily Injury and Property Damage
Liability (effective 6/2000) |
20/40/10 |
| AK |
Bodily Injury and Property Damage
Liability |
50/100/25 |
| AZ |
Bodily Injury and Property Damage
Liability |
15/30/10 |
| AR |
Bodily Injury and Property Damage
Liability |
25/50/15 |
| CA |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
15/30/5 |
| CO |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
25/50/15 |
| CT |
Bodily Injury and Property Damage
Liability, Uninsured and Underinsured Motorist |
20/40/10 |
| DE |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
15/30/5 |
| DC |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
25/50/10 |
| FL |
Property Damage Liability, Personal
Injury Protection |
10/20/10 |
| GA |
Bodily Injury and Property Damage
Liability |
15/30/10 |
| HI |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
20/40/10 |
| ID |
Bodily Injury and Property Damage
Liability |
25/50/15 |
| IL |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
20/40/15 |
| IN |
Bodily Injury and Property Damage
Liability |
25/50/10 |
| IA |
Bodily Injury and Property Damage
Liability |
20/40/15 |
| KS |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
25/50/10 |
| KY |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
25/50/10 |
| LA |
Bodily Injury and Property Damage
Liability |
10/20/10 |
| ME |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
50/100/25 |
| MD |
Bodily Injury and Property Damage
Liability, Personal Injury Protection (may be waived for policyholder but
compulsory for passengers), Uninsured Motorist |
20/40/10 |
| MA |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
20/40/5 |
| MI |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
20/40/10 |
| MN |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured and Underinsured Motorist |
30/60/10 |
| MS |
Financial Responsibility Only |
10/20/5 |
| MO |
Bodily Injury and Property Damage
Liability, Underinsured Motorist |
25/50/10 |
| MT |
Bodily Injury and Property Damage
Liability |
25/50/10 |
| NE |
Bodily Injury and Property Damage
Liability |
25/50/25 |
| NV |
Bodily Injury and Property Damage
Liability |
15/30/10 |
| NH |
Financial Responsibility Only |
25/50/25 |
| NJ |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
15/30/5 |
| NM |
Bodily Injury and Property Damage
Liability |
25/50/10 |
| NY |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
25/50/10 |
| NC |
Bodily Injury and
Property Damage Liability |
25/50/15 |
| ND |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
25/50/25 |
| OH |
Bodily Injury and Property Damage
Liability |
12.5/25/7.5 |
| OK |
Bodily Injury and Property Damage
Liability |
10/20/10 |
| OR |
Bodily Injury and Property Damage
Liability, Personal Injury Protection, Uninsured Motorist |
25/50/10 |
| PA |
Bodily Injury and Property Damage
Liability, Medical Payments |
15/30/5 |
| RI |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
25/50/25 |
| SC |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
15/30/10 |
| SD |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
25/50/25 |
| TN |
Financial Responsibility Only |
25/50/10 |
| TX |
Bodily Injury and Property Damage
Liability |
20/40/15 |
| UT |
Bodily Injury and Property Damage
Liability, Personal Injury Protection |
25/50/15 |
| VT |
Bodily Injury and Property Damage
Liability, Uninsured and Underinsured Motorist |
25/50/10 |
| VA |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
25/50/20 |
| WA |
Bodily Injury and Property Damage
Liability |
25/50/10 |
| WV |
Bodily Injury and Property Damage
Liability, Uninsured Motorist |
20/40/10 |
| WI |
Financial Responsibility Only,
Uninsured Motorist |
25/50/10 |
| WY |
Bodily Injury and Property Damage
Liability |
25/50/20 |
*What those numbers mean:
First number: bodily injury liability maximum for one person injured in an accident.
Second number: bodily injury liability maximum for all injuries in one accident.
Third number: property damage liability maximum for one accident.
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All content is © copyright (1998-2004)
BonPaulProductions (all rights reserved)
The BlueCollarDollar (SM) © copyright 1998-2004
The Blue Money Report(SM) - © copyright (2002-2004) All Rights Reserved |
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