The answer to that question depends on several factors. Some of the car insurance you need is dictated by whether you won a vehicle out right or you owe money on the vehicle. Other factors include the state where you live and your own financial conditions. The following information is for MO car insurance.
The state of Missouri has enacted financial responsibility laws for the owner and driver of every vehicle that is garaged in the state of Missouri. Failure to meet the financial responsibility laws can result in the loss of your driving privilege. Both the driver’s license and the vehicle registration can be suspended.
The minimum liability for the state of Missouri is 25, 000/50, 000/10, 000. The 25, 000 is the amount that is paid for bodily injury per person. The 50, 000 is the number of dollars paid per accident and the 10, 000 is the amount the insurance will pay for property damage in one accident. You are also required in the state to have uninsured motorist protection for bodily injury of persons in your vehicle.
Since the price of vehicles has slowly crept up over the past few years, you will be aware that $10, 000 in liability insurance may not be enough to cover the property loss during an accident. It may only cost a few dollars more to increase the liability insurance for property damage in order to protect yourself from a lawsuit in an accident.
The first time you are stopped without proof of insurance, you license and/or registration can be suspended. The suspension can be lifted immediately on the first count once you show proof of insurance and pay a twenty-dollar fee. However, your driving record receives a four point charge and it only takes eight points on the record during an 18 month period for driving privilege to be revoked in the state. The fee for reinstatement of drivers license increases each time you are caught driving without insurance to 400 dollars for the third or subsequent offense. In addition the time of the suspension is 90 days for the second suspension and one year for a third or subsequent suspensions.
In addition, your lien holder may require that you have full coverage insurance on your vehicle. Full coverage is collision and comprehensive coverage insurance. Collision will pay to repair or replace your vehicle in the event of an accident where you are at fault. Comprehensive insurance covers breakage to glass, vandalism and theft of vehicles. If your car is totaled or stolen, then the insurance company will pay your lien holder first. The remainder of the value of the vehicle will be paid to you.