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What States Require People To Have Car Insurance

What are the states that require car insurance?

But for two unique circumstances, all US states require auto insurance in varying limits and coverages.The two states that don’t require auto insurance still have financial responsibility laws and significant consequences for not complying with state statutes. Those states are:NEW HAMPSHIRE:“New Hampshire has no mandatory insurance law” so says the NH DMV. They go on to say “The Division of Motor Vehicles strongly recommends and urges all owners of motor vehicles to carry standard liability and property damage insurance.”If you have been convicted of the following offenses in New Hampshire an SR-22 is Required. Say, Insurance is required:DWI, Leaving the Scene, Reckless DrivingA habitual offender of motor vehicle lawsHad an at fault, uninsured motor vehicle accidentIf you’re involved in an at-fault accident in New Hampshire:You must provide “proof of financial responsibility”. That is, that you can provide sufficient funds to cover damage resulting from accidents that occur in the state and arise out of the ownership or use of a motor vehicle. That financial responsibility amounts to a total of $75,000.VIRGINIA:Pay a $500 Uninsured Motor Vehicle (UMV) fee, to the Department of Motor Vehicles (DMV) and you can avoid the auto insurance requirement. This must be paid each year in lieu of purchasing insurance.Like New Hampshire, an SR-22 is required following convictions of:Unsatisfied judgementsUninsured motor vehicle suspensionFailure to provide proof of insurance associated with insurance monitoringFalsifying insurance certificationDriver's license suspensions or severe convictionsBoth states require $25,000 per person and $50,000 per accident. NH requires $25,000 property damage liability and VA requires $20,000. Interestingly, if you purchase auto insurance, both states not only require Liability, but Uninsured Motorist coverage as well.One might be better off in a state that requires auto insurance and just complying with the law?

Are rich people required to have car insurance?

Nobody is required to have automobile insurance. People are required to show proof of financial responsibility for any damage they might cause if they wish to drive an automobile on the public roads. For the vast majority of people the easiest and most economical way to show proof of financial responsibility is an automobile insurance policy. It is possible, but not wise, to self insure if one has the financial resources to do so. Individuals like Warren Buffett or Bill Gates could self insure if they wished, but something tells me they are not foolish enough to try that. They would have too much to lose by self insuring.

Do all states require car insurance?

Do all states require car insurance?Well sort of. Some states will allow you to post a cash bond/savings account in lieu of insurance. And 2 states don’t require that you buy insurance, but you lose your driver’s license if you have an at fault accident and can’t pay the minimum insurance amounts for Bodily Injury and Property Damage out of your pocket. And you can’t get it back until you make good on your debt.

Is it unfair to require poor people to buy car insurance if their cars are worth very little and not worth insuring?

Depending on the state in question there are two kinds of insurance, fault and no-fault.Florida, as an example of a no-fault state, has each person insure their own car for damages against it and their own medical costs in an accident. In this system it doesn't matter whose fault it is for the accident, your insurance takes care of you, and theirs takes care of them. A benefit to this is that you can purchase as much or as little insurance as you think you need (provided you are doing at least the state minimum).Tennessee on the other hand is Fault state. The kind of insurance mandated to be purchased in TN is liability insurance. In other words, if you are the cause of an accident, you are liable for the damages you have done to others. So the state requirement is, for TN, $25,000 in bodily injury, and $15,000 in property damage. In other words, if every driver in TN is insured with at least the minimum required insurance in TN, then if you get run into and it isn't your fault, their insurance will pay up to $25,000 in a bodily injury claim, and up to $15,000 worth of property damage. In a Fault state you are offered the opportunity to purchase collision insurance which will cover you regardless of fault, but on my experience it is as costly as the liability insurance which in essence doubles your insurance payment. Collision covers you even if no other driver was involved such as you running into a fence. If you are afraid of getting run into by an uninsured driver, uninsured motorist protection, which is relatively cheap compared to Liability and Collision, pays out if you are run into by a driver without insurance or if your Medical or Property damage claims exceed the amount covered by the person at-fault's insurance.So in an at-fault state, what they are required to buy is liability coverage which is to protect other drivers and their property from the person driving that vehicle. It is essentially a responsibility of driving to protect those you may hurt by virtue of driving and not to protect the value of your own car.I apologise for any mis-spoken words I'm sure someone else will be more articulate in their answer. Hope you have a great day.

In the state of Hawaii, does my car insurance have to have the same name as my registration?

you just need to notify your insurance company that she will be driving the car and have her listed as the primary driver. The insurance does have to remain in your name because it has to be the same name as the registration.

Why do most states require drivers to have liability insurance?

auto insurance is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance, while in Virginia
residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance.Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle. Typically, coverage against loss of or damage to the driver's own vehicle is optional - one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance policy.

Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

In law a legal liability is a situation in which a person is liable, such in situations of tort concerning property or reputation and is therefore responsible to pay compensation for any damage incurred; liability may be civil or criminal.

What states don't require auto insurance?

There are two states that don’t require auto insurance. Well… sort of. don’t. require. auto insurance.NEW HAMPSHIRE:“New Hampshire has no mandatory insurance law” so says the NH DMV. They go on to say “The Division of Motor Vehicles strongly recommends and urges all owners of motor vehicles to carry standard liability and property damage insurance.”If you have been convicted of the following offenses in New Hampshire an SR-22 is Required. Say, Insurance is required:DWI, Leaving the Scene, Reckless DrivingA habitual offender of motor vehicle lawsHad an at fault, uninsured motor vehicle accidentIf you’re involved in an at-fault accident in New Hampshire:You must provide “proof of financial responsibility”. That is, that you can provide sufficient funds to cover damage resulting from accidents that occur in the state and arise out of the ownership or use of a motor vehicle. That financial responsibility amounts to a total of $75,000.VIRGINIA:Pay a $500 Uninsured Motor Vehicle (UMV) fee, to the Department of Motor Vehicles (DMV) and you can avoid the auto insurance requirement. This must be paid each year in lieu of purchasing insurance.Like New Hampshire, an SR-22 is required following convictions of:Unsatisfied judgementsUninsured motor vehicle suspensionFailure to provide proof of insurance associated with insurance monitoringFalsifying insurance certificationDriver's license suspensions or severe convictionsBoth states require $25,000 per person and $50,000 per accident. NH requires $25,000 property damage liability and VA requires $20,000. Interestingly, if you purchase auto insurance, both states not only require Liability, but Uninsured Motorist coverage as well.Seems much easier just to buy auto insurance.

Car insurance coverage question?

A. Comprehensive means, stuff that happens to your car, that is NOT you driving into something, or something driving into you, and is also NOT flipping the car. Examples are fire, theft, vandalism, broken glass, and in some states, collision with an animal. If you have a loan on your car, the bank will require you to carry it. I carry it, because it's very easy to get a cracked windshield, which can cost a lot to replace.

B. Collision is when you run into something with your car, or another car (or shopping cart, or bike) runs into your car, or you flip your car.

C. Uninsured coverage is when you are hit by someone else who does not have insurance, and you have bodily injury - it pays medical bills, and pain and suffering. It also covers you as a pedestrian, and covers you for hit-and-run injuries.

D. Underinsured - this is when you're hit by somebody who has some insurance (usually state minimum limits), but you have A LOT of injuries. This pays the difference between how much coverage he has, and how much you bought. Example: You have $100,000 UIM. He has $20,000 bodily injury. He hits you, you have two broken legs, are in traction in the hospital for 6 weeks and need a month of rehab afterwards. Your hospital bills are $120,000. His policy pays $20,000, and your policy pays $80,000.


Your agent should be explaining these things. If they can't/won't, you need a new agent.


By the way, there is no "acts of God" in the insurance world. It's not written into any policy. It's not a proper insurance term. Also, flood damage to your car IS covered under comprehensive. NO CAR DAMAGE IS EVER COVERED BY A HOMEOWNERS POLICY, contrary to what someone above posted.

Why does the government require car insurance?

Insurance is a requirement for the privilege of using public roads and to assure (to some degree) that one can compensate others whom might be harmed.In the US, the legal obligation for auto insurance varies depending on the state in question.The map below shows the types of insurance that states require for the privilege of using public roads.[1]Red states only require liability coverage. That being coverage for injuries or damages to another party if the insured is at-fault.The orange, yellow and green states have a requirement of liability, uninsured motorist and/or personal injury protection in some combination.EXCEPTIONS:New Hampshire: New Hampshire does not have compulsory insurance other than for uninsured, at-fault and DWI charged drivers which require an SR-22. Few people know however that NH is not entirely freewheeling when it comes to meeting financial responsibility:[2]New Hampshire Motor Vehicle Laws do not require you to carry Auto Insurance, but you must be able to demonstrate that you are able to provide sufficient funds to meet New Hampshire Motor Vehicle Financial Responsibility Requirements in the event of an “at-fault” accident. If you are unable to meet these requirements your driving privileges in New Hampshire may be suspended. For more information on financial responsibility requirements you can refer to New Hampshire Statute RSA 264 or contact the New Hampshire Division of Motor Vehicles at 603-271-3101 or NH Department of Safety.Virginia: Allows for the payment of a $500 fine in lieu of meeting the insurance requirement. Yet most don’t realize that other penalties are imposed for those not complying with the state’s insurance requirements including:[3]Deactivation or surrender of license platesDriving and vehicle registration privileges suspended.Yours is a “WHY” question.The simple answer is that driving on public roads is not a right, but a privilege.The obligation that comes with that privilege is the State’s requirement that you can demonstrate compensation for others whom you might injure while using those same public highways.Footnotes[1] Background on: Compulsory Auto/Uninsured Motorists[2] https://www.nh.gov/insurance/con...[3] https://www.dmv.virginia.gov/veh...