The amount of auto insurance you need is determined by where you are in your life. Auto insurance is like a relationship, some require a large amount of effort, thought, and maintenance. Others, not so much. Certain parts of the insurance relationship can be tricky and you may not realize you’re screwed until it’s too late.
Take this example, an individual living with Mom and Dad that drives under their insurance. Mom and Dad may need a large amount of insurance. Why? Because Mom and Dad are ultimately responsible and need to be sure they can keep their house if the person insured decides to jump into a car after having a couple of drinks. Without the proper insurance everyone is in Jeopardy (What is ”totally screwed” for a hundred thousand.. Alex?).
Now what if the person that lives with Mom and Dad, has their own insurance? I tell you again, that insurance relationship is tricky, because even though they may have their own insurance, a good lawyer can get back to the parents if the individual is not independent, so if the individual has the state minimums and the parents own a home and have money saved for retirement, they are very much at risk.
The only way for a person to know that he or she is not at risk is to understand what they have to protect. If you live by yourself, pay your own bills, rent an apartment and do not have kids, in my opinion, you can take a chance on state minimums, but if you have something that you want to keep for you and your family now or in the future you need to find coverage to protect it. Having the coverage you need will come at a cost, and as you and I both know auto insurance is not cheap, or is it?