What’s Wrong with Carrying Only the State Minimum Auto Insurance?

Every state requires drivers to carry a minimum amount of liability insurance. This coverage helps pay for injuries or property damage you cause to others in an auto accident. State minimum auto insurance often does not provide enough liability coverage to pay for serious accidents. If damages exceed your coverage limits, you may have to pay the remaining costs yourself. 


 






​Why minimum coverage may not be enough
State minimum policies can leave drivers financially exposed.
Common problems include:

• Medical bills can be very expensive
• Vehicle repairs often exceed minimum property damage limits
• Multiple people injured in an accident increases total costs
• You could be personally responsible for the remaining balance

If damages exceed your liability limits, the injured party may try to recover the difference from your savings, income, or assets.

When higher liability limits may make sense
Higher liability limits may be recommended if you:

• Own a home or other assets
• Have savings or investments
• Want stronger financial protection
• Drive frequently or long distances
• Want peace of mind after a serious accident

Higher limits usually provide much more protection for a relatively small increase in premium.

How to choose the right liability limits
The best coverage amount depends on factors such as:

• Your assets and income
• Your risk tolerance
• Your driving habits
• Local accident costs

Blue Sky Insurance Group, LLC, in Las Vegas, Nevada,  can review your situation and help you choose limits that better protect your finances.
Written by Amy Miller
Blue Sky Insurance
​Agency Owner
Updated 3/19/26

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