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Major Laws in Car Insurance

Here's what you need to know...
  • All states have minimum required car insurance for anyone who carries car insurance
  • If you do not have insurance coverage, you are typically fined for failure to comply with this law
  • Check with the department of insurance there to find out what the minimum requirements are
The major car insurance laws that any owner of a vehicle should know about differ slightly from state to state, but overall are the same throughout the United States.

Owning a vehicle is about much more than putting gas in it and knowing how to drive. Following laws concerning car insurance is also crucial. Such laws protect you in more ways than you realize.

Read on to learn the major in the US.

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Required Car Insurance Coverage

adobestock_80589156-1600x1600Every state in the U.S. has some form of a guideline in place for car owners to prove their financial responsibility in regards to the use of their vehicle.

What this means is that if you choose to operate a car, you must be able to financially cover property damage or bodily injury that you may cause while using it.

All states have minimum required car insurance for anyone who carries car insurance.

Most states require you to carry car insurance. However, there are still a few that have financial responsibility laws instead that give you the option of proving you can pay for any damage or injury you cause.

This is usually done with a deposit, or by taking out car insurance in at least minimum amounts of liability. Most people in such states opt to carry car insurance as their form of financial responsibility.

If you are a high-risk driver or have had certain types of infractions, most states will require you to carry an SR-22 document. This paper simply proves that you have car insurance and is usually required to be carried for three years.

The requirements of this law can be met by practically any insurer.

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Penalties for Non-Compliance with Major Car Insurance Laws

If you choose to ignore these car insurance laws, which are put in place for your protection, you are putting yourself at risk for a variety of penalties for non-compliance. You not only risk things like traffic tickets but also risk putting yourself in the path of financial trouble.

In many states, police officers will request proof of insurance coverage following a stop for traffic violations or following an accident. If you do not have insurance coverage, you are typically fined for failure to comply with this law.

This ticket is in addition to others you may incur for the same incident. Actual fines vary depending on the state where you live or are stopped.

Another common consequence for non-compliance with car insurance laws is the revoking of registration, revoking of a driver’s license or even inability to register your car with the state. Often state laws require coverage for all vehicles prior to registration.

If you cancel insurance after the fact or fail to renew it, your registration can be revoked.

If you lie to the department of motor vehicles or a police officer regarding car insurance, you may face stiffer penalties than mere fines.

A major penalty for failing to carry car insurance is the natural consequence. If you are involved in an at-fault accident or are the victim of a hit and run accident or an accident with another uninsured person, you will find that you will be left holding the bag financially.

If at fault, you will be held liable for the medical expenses and property damage incurred by other parties in the accident.

In the case of hit and run, when there is no other party to sue, you will have to cover your expenses rather than turning to your insurance company for help.

Similarly, if you get into an accident with another uninsured individual, chances are you will be left covering your costs.

There is optional uninsured driver coverage for this situation.

Complying with Major Car Insurance Laws

United-States-map-78275004-1600x1600It is easy to make sure that you are complying with the major car insurance laws in your state. Simply check with the department of insurance there to find out what the minimum requirements are.

Then you will need to find a policy from a company licensed to write insurance in your state, which includes at least that amount of coverage.

Depending on whether or not your vehicle is financed, the assets you have and other factors, you may want to consider carrying more extensive coverage than the minimum required by law.

To find the best policy to meet your insurance needs, simply put a free online quote tool to work for you.

To meet your car insurance needs, get started by entering your ZIP code below now!

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