Minimum Essential Coverage
Categories: Insurance
Wanna drive a car on a public highway? Then you need this.
Minimum essential coverage is the absolute minimum dollar coverage you need to drive. Like...a $500 deductible and coverage up to, say, 5 grand in damages you might cause to others. (Nobody cares if you damage your own car; you can do that all day long if it floats your boat...or drives your car, or whatever.)
Why do you need this coverage? Well, how would you feel if you were The Other Guy or Gal who was hit by somebody, where it was that somebody's fault entirely? They caused $4,300 in damages to the car, likely more than that in healthcare or other trauma costs to you, The Other. It turns out they have no assets. They have 5 grand owed on a credit card, and really not much else. And yes, they too regret having majored in English at Swarthmore.
So now they owe you $4,300, but they have no money. You'll have to collect from their insurance company. Were they not required to carry this insurance, you'd get nothing. So...well, at least your car is like new and shiny. That left knee of yours will never be the same.