Is car insurance required by law?

The answer is an emphatic “Yes!” Wherever you may be in the United States, the law sets down minimum rules and regulations regarding car insurance. Of course, these rules may vary depending on the State but the fact remains that driving without car insurance is considered illegal. The point of contention would be the amount of liability minimums, which are set by the State. Driving without car insurance does not mean that if you were caught you would be sent to prison. You will probably be fined a reasonable amount yet in some States, the fine can reach up to a hundred to a hundred and fifty dollars. That should not be a reason to drive without car insurance, though.

Different States also require different kinds of coverage. Some require only general insurance while others require bodily injury as well as property damage liability. Other requirements may be personal injury protection and uninsured motorist protection. So when you go shopping around for car insurance, it is best that you first know what your State requires before committing to anything.

A good place to start would be to check the liability minimums that your State requires. An example of a requirement would be a set of three figures such as 20/40/15. This means that you need coverage of at least $20,000 for injuries (per person) that arise from accidents that are your fault, $40,000 at least for combined damages, and at least $15,000 for any damages to property that you may cause. The general idea is to have your car insurance cover these minimum amounts. However, in practice, you would probably be better off if you purchased a car insurance policy above the set liability minimums of your State.

There is also what is called the no-fault policy. This is practiced by a total of 12 States. It means that there is a limitation as to how a driver can sue another in case of an accident. A pure no-fault State would mean that no lawsuit can be carried out as the insurance would cover everything, no matter whose fault it is. However, in reality, there is no pure no-fault State.

You may or may not deem it necessary to take out insurance before taking your car out on the road. However, the law requires that you do so – and for good reason. You may be the most careful driver in the world and you may never have had an accident your whole life. When that one mistake – on your part or the other driver’s part – occurs, you will be grateful that you have that insurance.