Car Insurance is mandatory because driving comes with many risks. Not just to you but to your vehicle, your passengers, those around you, and the vehicles of others. Anyone can get into a car accident, which is why all drivers must carry car insurance in case they cause an accident or get involved in a car accident.
Car insurance will help drivers who cause accidents pay for the injuries or property damages they caused to others.
Car insurance is a requirement in 49 states out of the 50 states in the US except New Hampshire, and drivers still have to pay for any damage they cause when driving.
The biggest reason is to ensure the medical bills and damaged properties of those involved in a car accident are settled.
The law backs insurance up to ensure that every driver with the potential to cause an accident has enough insurance to cover a level of cost for any damage and injury.
Every state has a minimum level of liability insurance all drivers must present as a requirement before hitting the road.
Some states require more comprehensive insurance coverage than others. It is mandatory as you need them to drive your car on public roads legally.
Types of Car Insurance that Are Mandatory
The most mandatory car insurance is the minimum liability car insurance coverage. It is required by law and covers medical expenses as well as property damage expenses.
Drivers must have personal injury protection insurance coverage that covers the medical expenses for passengers and yourself also if there is an accident.
All drivers must have medical payment coverage insurance that covers the medical expenses of passengers after an accident.
Drivers who cannot afford these coverages should ensure they have underinsured and uninsured motorist insurance coverage.
Drivers should have Collison coverage insurance that covers the repair costs for their vehicle after an accident irrespective of who is at fault.
However, drivers should have comprehensive coverage insurance that pays for vehicle damages that are not in any way related to car accidents. Such as natural disasters and falling into objects/animals.
However, it is important to note that comprehensive and Collison insurance coverage is not exactly mandated by state law if it’s a personal car. But if it is a rented car, car lenders would require it.
Reasons Why Car Insurance is Mandatory
There are several reasons why states make car insurance compulsory, below are a few:
- Car insurance offers driver’s financial protection
- It protects you from the cost of car repairs for yourself and others
- Car insurance helps protect you from the medical bills for yourself and others
- It helps you take care of bills when your wages are lost
- Car insurance helps if you are been sued
- Car insurance helps you handle funeral bills in case of deaths
- It helps you protect yourself
What are the Penalties for Not Having Mandatory Car Insurance?
The penalty you face when you drive without car insurance can vary from state to state. However, the most common penalties are losing your driver’s license and paying heavy fines.
In other states, you may face jail time for up to one year, for example, states like Michigan can get you some time in jail.
Fines in some states can be as high as $1,000 and even higher in some other states. The penalties get worse the more you get caught driving uninsured.
It is therefore important to get your car insurance and maintain it too to be aware of upcoming coverage gaps.
What Do I Do if I Live in a No-Fault State?
Ano fault state is a state where drivers use their insurance to cover their injuries and car damages irrespective of who was at fault in the accident scene.
If you live in a no-fault state, if someone else causes an accident you have to still pay for your repair and medical bills.
Your coverage takes care of your injuries and property damages by the amounts specified in your car insurance policy.
What if My Car Insurance Expires?
Your car insurance is for a specified amount of time so it is bound to expire, you have the responsibility of renewing it, failure to do so comes with penalties.
Car insurance is mandatory and so is renewing it when it expires.