When looking to purchase car insurance you have a lot of options. From big brands such as Nationwide and Statefarm to local agents that resell car insurance on behalf of smaller, regional insurance providers. Prices vary just as much as the levels of coverage does. But where do you go when you cannot afford standard car insurance? You need to look for minimum coverage car insurance.
Minimum Coverage Car Insurance
Minimum coverage car insurance or sub-standard car insurance is a level of insurance that provides you with the minimum level of insurance you need to drive legally. We all know that to get behind the wheel of a car you need to have insurance but how much coverage you have is actually dictated by state legislators. Each state requires drivers have a minimum level of coverage. This level of insurance coverage is often significantly less than companies like Geico and Progressive sell to their customers.
Minimum car insurance is the least amount of auto insurance you can legally drive with. If do not have enough money to spend over $100 a month on car insurance, looking to a minimum coverage option may be a good idea for you. Fees can range from $19 to $50 a month and you can often get a quote and purchase car insurance online through a quick quote process.
Sub-standard insurance was created to cater to a market consisting of lower income families or individuals. The average buyer of minimum coverage car insurance makes less than $50,000 per year before taxes.
What companies offer minimum coverage?
Your traditional, large insurance companies do not offer this type of auto insurance coverage. But over the past five years there has been a large growth in this market and we have seen three companies make a move into this specific realm. Safe Auto has been the biggest competitor in the sub-standard insurance market. They have used large marketing budgets to carve themselves out a large space in this niche market. The General also has made strides into attempting to corner the sub-standard auto insurance market. They have utilized TV advertising heavily to build a brand name and have utilized late night TV advertising to cater to this specific market. We also recently saw a company called Good2Go jump into the game and they are now offering sub-standard coverage in 20 states.
How Much Coverage Do You Get?
The important thing to remember when you purchase this type of insurance is it is a lower level of coverage. You get very limited tort coverage and most likely will have high deductibles. You get just enough coverage to meet the limits set by the state you live in.