Every state requires its drivers to purchase auto insurance and each state has a cheap high risk auto insurance that its drivers can buy. This insurance is known as a basic liability policy.

The amount of coverage the basic liability policy must provide varies from state to state. Any agent in your state would be happy to tell you what the minimum liability insurance requirement is in your state, or you can find that information online.

When you get a quote for liability insurance you will be given three numbers, such as 10/20/10. Obviously I am using these three numbers simply as an example - they may or may not apply to your particular state.

A 10/20/10 liability policy would pay a maximum of $10,000 in medical claims to any one individual who was injured in an accident, and would pay a maximum of $20,000 in medical claims for everyone involved in an accident, regardless of how many people were involved or how serious their injuries were. The final “10″ in our example refers to the fact that the insurance will pay $10,000 toward the repair or replacement of the other person’s car - referred to as property damage.

There are a couple of things which make these policies high risk. First is the low dollar amount of protection they provide for. It doesn’t take much of an accident these days to incur medical bills well in excess of the maximum amount that any state’s minimum liability policy will pay for. And often a scratched fender will max out a basic liability insurance’s property damage payment.

What happens if there are medical bills in excess of the amount your insurance will pay for or if there is property damage totaling more than your policy’s maximum payout? You get to pay the different out of your own pocket. You may be forced to empty your life savings, sell any stocks you might own and you could even be forced to sell your home.

Purchasing a higher dollar amount of insurance would offer more protection, but more protection equates to a higher monthly premium.

The other problem with purchasing only a limited liability policy is that liability insurance doesn’t pay anything toward the repair of your vehicle after an accident. Basic liability may also not pay anything toward your medical bills or toward the medical bills of anyone in your vehicle at the time of an accident.

If you are still in the market for cheap high risk auto insurance then the best place to start (and end) your search is online. There are dozens and dozens of websites which allow you to compare the cost of basic liability insurance (or any other auto insurance) from several different insurance companies.

However, since no one website compares the prices from every insurance company selling policies in your state, you’ll have to fill out the form and make your price comparisons on at least 3 different websites if you want any chance of comparing the cost of insurance at EVERY insurance company.

Still, this is a small price to pay for the satisfaction of knowing that you have found the very least expensive auto insurance available from any company in your state and that you will be saving money month after month and year after year.

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