Never mind what driving history you have, whether you have a clean record or a record marred with traffic violations; if you wish to continue enjoying driving privileges in the US, then you will have to carry auto liability insurance or risk getting caught uninsured, which may result to costly fines, suspension of license, more expensive insurance premiums or possible imprisonment.
Carrying auto liability insurance, also known as the financial responsibility law is a mandate in all US states. Compliance to this financial responsibility law can be done by: (i) purchasing car liability insurance coverage, as is the case in 48 US states; (ii) posting a bond or cash to show proof of financial capability in case of an at-fault accident, which is the case in New Hampshire, the only state where having car insurance is not mandated; or, (iii) paying a significant fee to the state to be able to register a car as uninsured, as is the case in the state of Virginia (the state actually allows this as an alternative to insurance coverage).
The first compulsory car insurance laws were passed around 1925, in the states of Massachusetts and Connecticut. The law was introduced based on the obvious signs that cars would crash, and injure people and damage properties in the process. It was made compulsory to help drivers, who are at fault in the accident, cover the costs of damages to victims and never default on making payments.
The type of car liability insurance coverage a driver should carry depends on which state he or she resides. This means that in tort states, the full tort liability insurance is required. Tort auto insurance is a system wherein a driver, who is at-fault in a car accident, is responsible for paying cost of medical treatment necessitated by his or her victim. Compensation also includes loss of wages, and pain and suffering. There are currently 38 states where tort auto insurance is required.
Twelve other states have the no-fault auto insurance. Unlike in tort states, where victims usually need to file a civil lawsuit against the at-fault driver, to determine the amount of compensation that needs to be paid by the at-fault driver’s insurance provider, the filing of a lawsuit is no longer necessary in no-fault states since compensation is to be paid the respective insurance providers of the drivers involved in the accident, regardless of whose fault the accident is. The twelve states where the no-fault insurance coverage is required are Utah, Pennsylvania, North Dakota, New York, New Jersey, Minnesota, Michigan, Massachusetts, Kentucky, Kansas, Hawaii and Florida.
Despite the law on carrying car insurance, thousands of drivers risk losing their driving privileges due to driving uninsured. The reason: the high cost of insurance premiums. Greenfield, WI car accident attorneys tell drivers that there is a way of being insured without experiencing strain on their budget. With the help of independent car insurance companies, they can get quotes (even via online) for the best deals patterned on their specific needs, driving history and, of course, budget.Read More »