Can someone please explain what minimum policy insurance means?

Question

Can someone please explain what minimum policy insurance means?

Answer 1

Minimum means not good enough. Means, you can do better.

I dont know what kind of insurance policy you are talking about, but when you buy the minimum when it comes to insurance that means you are missing out on alot of important coverages.

Come back and tell us what kind of insurance policy you are referencing

Answer 2

Each state sets its own "minimum liability limts". In my state, Tennessee, the minimum limits are $25,000/$50,000.

I'm sure you're wondering what these 2 numbers mean. They are the amount of liability coverage you have for personal injuries to others if you're at fault in an accident. The first number, $25k, means that you will have $25,000 of injury coverage to any one person injured in an accident that you're liable for. The $50k is how much money your policy will pay out total for all injured people as result of your accident.

So.......let's say you cause an accident and 3 people were injured as a result. 1 person was badly injured and the other 2 were mildly injured. The peron who is the worst injured could get no more than $25k, and the other 2 people would have to split the remaining $25k between them.

You need to have enough liability coverage to protect your assets so someone can't come in and take your home and retirement accounts because you don't have enough insurance to make them whole again. Some states only require $10k/$20k policies....which is a drop in the bucket on most injury claims considering an ambulance ride and an E.R. visit can run $3k-$4k. I guess what I'm trying to say is....GET MORE THAN MINIMUM COVERAGE!!!

Answer 3

If you are talking about your car, the state you live in sets a minimum amount of insurance which you have to buy before you can license a car in your state.  Most people choose to buy more than the minimum, because of the litigation epidemic.