Mandatory Auto Insurance Laws
Mandatory Auto Insurance Laws in Every US State
With all the talk about future plans for mandatory health insurance, it seems like a good time to examine something similar that we already have in place. Every US state requires “proof of financial responsibility” in order to legally operate a vehicle. For most of us, that proof means that we must carry our state required minimum auto insurance policy.
Of course, most of us actually have more coverage than the minimum liability policy. Why? Well, our auto loan company may require it, we may need it for a business car, or we may just think it is a safe thing to do.
Why Do We Have Mandatory Car Insurance Laws?
It is one thing to be imprudent if it only affects you. But people in the various states decided that it is not ok to make these decisions if it can hurt the people around you. Every time you operate your vehicle, you take a risk. The best drivers are not immune from the mistakes of others.
You know that you could be driving down the street at a safe speed, minding all of the traffic rules, and somebody else could decide to pull out of a parking lot or change lanes in your path. If you have been driving for awhile, you have probably had an accident.
Furthermore, most people do not lack car insurance because they are realy rich and can just write a check for any accident claims. They lack it, in most cases, because they already have trouble paying bills. The sort of person who does not carry auto insurance is usually not financially reponsible enough to operate a vehicle. This isn’t a judgement, in my opinion, but just a fact.
Since we must present proof of insurance, in my state, when we need to get our car inspected, renew our registration, or get a driver’s license, it is hard to believe that any legal drivers are not aware of the rues.
The People Decided That Mandatory Auto Insurance Laws are Fair
So the states decided that everybody should be protected. This is not protection against their own mistakes, because laws only require liability insurance. It is protection against the mistakes of others. We, as a people, have decided that this is fair. The law does not actually protect the driver who is purchasing a minimum liability policy. It protects others who might suffer a claim because of that driver. But in the end, if everybody follows the rules, it protects everybody.
The Rules Help Car Insurance Companies Too
Auto insurers can actually offer lower rates if they can spread the risk. An individual company may not accept every driver, but they can accept more drivers at lower rates if they have more people to cover. Think about how your own company may be more willing to offer you a discount on your teen driver if they can also cover the lower risk parents in your family.
Do You Need Auto Insurance?
If you need to meet your state’s laws, a lender’s requirements, or just want to comparison shop, it is quick and easy to use our online forms!
Get Quotes Now : Online Auto Insurance Comparison.
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