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Ways That States Compel Drivers To Have Car Insurance
August 10th, 2010
Car accidents happen when least expected, and it is important to be protected. When shopping for cheap car insurance, there are many things to consider, and it is necessary to understand the state insurance law where you live. Laws vary from state to state, and can get confusing for consumers who are not sure exactly what is required of them.
Different states have different requirements on what is mandatory in an insurance policy. Each has set their limits for bodily injury, physical damage liability, no-fault personal injury protection, as well as uninsured or under-insured motorist protection. These limits can change or go up, so be aware of the current requirements in your state and make sure your policy abides by the law.
Driving without the minimum required insurance is illegal, with the exception of New Hampshire and Wisconsin. The state insurance law for New Hampshire and Wisconsin is that drivers must provide proof of financial responsibility, which means they must have enough money to cover any costs incurred in an accident if they do not have an insurance policy. If a driver does not have the assets, they are still required by law to provide current proof of insurance in the event of an accident.
State governments have various ways to compel drivers to keep current insurance policies. Some states require police officers to ask for proof of insurance at routine traffic stops. Other states only require proof in the event of an accident. Many states require that drivers provide proof of insurance prior to registering a vehicle in that state. Different states have their own order in which the registration process itself is handled, so be aware of these changes when relocating.
While the minimum insurance requirements are mandatory, this does not mean that everyone on the road has current insurance. In some places, up to 1 in 5 drivers do not have a current policy. A motorist can choose to be uninsured for multiple reasons, but that does not make them less of a liability for fellow drivers. Purchasing cheap car insurance is beneficial not only to the policyholder, but also for others on the road.
It is easy to stay legal and find a cheap car insurance policy. First, do the research and find out exactly what the minimums are for where you live. Next, ask your friends or neighbors who their providers are and how they like the service. Finally, talk to an insurance broker or go online to find which provider fits your needs and can give you the rate you want. Keep yourself protected, both financially and legally, and find the best car insurance that works for you.
