Among all the bills you have to worry about, you might be wondering if you really need car insurance. Did you know that auto insurance coverage is mandatory in all states except New Hampshire?
Actually, that is not bad news. When you learn about car insurance, you will realize that there are benefits to you as a driver. Not only that, it protects you as a pedestrian or even as a passenger in another car.
Mandatory auto insurance coverage can also be referred to as liability insurance or even third-party insurance. Each state handles this in different ways.
Is State Minimum Insurance Enough?
The state’s minimum insurance will only cover third-party property and bodily injury when the accident is your fault. It doesn’t cover any damage to your own vehicle or medical expenses for you and your passengers. Also, liability insurance won’t cover any accidental damage to your car, incidentals, vandalism, weather damage, or any other mishap that drivers might face.
Below you will find a chart pointing to the different states that do not require you to purchase an insurance policy. But keep in mind you cannot escape liability if something happens while driving your car. It will be your responsibility to cover any damage to third parties.
For the best information, refer to your state’s department of motor vehicles to find the mandatory requirements. Use the National Association of Insurance Commissioners website to locate your state’s official insurance department.
Car Insurance Requirements by State
(Please refer to the car insurance acronym guide at the bottom)
|AL, AK, AZ, AR, CA, CO, GA, ID, IN, IA, LA, MS|
MT, NV, NM, OH, OK, RI, TN, TX, WA, WY
|BI and PD|
|CT, IL, MO, NB, SD, WI||BI, PD, and UIM BI|
|DC, MD, NC, SC, VT, VA, WV||BI, PD, UIM BI, and UIM PD|
|KS, ME, MA, MN, NJ, NY, ND, OR||BI, PD, UIM BI, and PIP|
|DE, HI, KY, MI, PA, UT||BI, PD, and PIP|
|FL||PD, and PIP|
Car Insurance Acronyms
BI: bodily injury
PD: property damage
UIM BI: uninsured/underinsured motorist bodily injury
UIM PD: uninsured/underinsured motorist property damage
PIP: personal injury protection insurance
Specific Car Insurance Information by State
We put together some detailed information that could help you navigate through the specific requirements by state.
Why is Car Insurance Required?
If you are in a car accident, your insurance provider will pay for the injuries for you and other parties involved, along with any car damage caused during an accident. Remember, as a driver; you are responsible for piloting a steel frame weighing hundreds of pounds. If mishandled, the car can cause harm to property and people. Your vehicle can be damaged, and you and your passengers can be very hurt. Most states want to be sure you are covering third parties—or the person you hit. You really need car insurance to face any accident responsibly.
Thankfully, agencies offer several types of car insurance policies. The best way to get a good deal is to compare. You can use the auto quote comparison tool and find the best auto insurance quote that fits your needs and budget.
How Much Car Insurance Do You Actually Need?
Bodily Harm and Property Damage Liability Insurance
What is it?
Bodily harm and property damage liability insurance or liability insurance offers protection against bodily injury and property damage claims against you. After you have paid the minimum deductible of your accordance, the insurance provider will pay the rest of the expenses.
What does liability insurance cover exactly?
- Property damage liability coverage – If you damage someone’s car or property, like a mailbox or a fence, you are considered liable or responsible for those damages. Liability coverage will pay for the expenses to cover property repairs for others but only up to the amount stipulated in the policy.
- Bodily injury liability coverage– If you injure someone, you are considered liable for their injuries. Liability coverage will pay for the medical bills that result from the accident but only up to the stipulated amount in the policy.
Is State Minimum Insurance Enough?
The state’s minimum insurance will only cover third-party property and bodily injury when the accident is your fault. It does not cover any damage to your own vehicle or medical expenses for you and your passengers. Also, liability insurance won’t cover any accidental damage to your car. No incidentals, vandalism, weather damage, or any other mishap that drivers might face.
At the end of the day, it is up to you to determine how much coverage is appropriate. You can always rely on the Freeway auto insurance comparison tool to help you make the decision.
So, Do You Really Need Car Insurance?
Plenty of factors contribute to accidents or mishaps. Other drivers might involve you in an accident that is not your fault. If you do not have insurance and are at fault during an accident, you will have to take full responsibility for all expenses. Will you have enough money to pay for car damage to your car and the other driver? Can you pay medical expenses?
Also, it is good to note that you can be ticketed if you are pulled over by the police and are uninsured.
Second, you might get in trouble with the law. If you decide to drive uninsured and get pulled over, you may face fines, have your vehicle impounded, even be jailed in some states.
Find the Best Deal in Car Insurance Today!
Car insurance is more than just a legal requirement; it’s also an inexpensive way to protect yourself from the risks of daily driving. Freeway Insurance can help you navigate the low-cost car insurance maze with an online quote or by calling us at (800) 777-5620. You can also visit us at an office near you.