Drivers in the U.S. face the risk of having their driver’s license (and driving privileges) suspended if they are caught driving or get involved in an accident without auto liability insurance. Thus, showing proof that they have insurance coverage is necessary every time they renew their driver’s license and vehicle registration.
In the 38 “tort” or “fault” states, drivers are required to have the tort insurance coverage. In this type of insurance liability system, it is the car insurance provider of the driver liable in an accident which pays the innocent accident victim the compensatory damages. If the compensation is not enough to fully cover all the damages and losses suffered by the victim, then (victim) has the right to file a civil lawsuit against the at-fault driver for further claims. If both drivers, however, are proven to be partly at fault, then both pay each other, the amount of payment being based on the degree of their accountability in the accident. Compensation should cover cost of medical treatment, wages lost, and pain and suffering.
In 12 other states (known as “no-fault” states), the type of policy which drivers need to carry is the “no-fault” insurance coverage, an insurance liability system wherein drivers involved in accidents are paid by their own car insurance providers, regardless of who is at fault in the accident. These 12 states with the no-fault auto insurance laws include Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
New Hampshire is, so far, the only state where drivers are not required to carry auto liability insurance, unless he or she has committed a serious traffic violation, like DUI or reckless driving, or has injured/killed someone in an accident where he or she is at fault. Without having committed any infringement in traffic rules, then filing an SR-22 or depositing securities or money with the state treasurer would be acceptable alternative to auto insurance coverage.
While carrying car liability insurance coverage in Virginia is a prerequisite to driving, the state, nonetheless, allows drivers to pay the state’s Department of Motor Vehicles (DMV) the required uninsured motor vehicle fee in lieu of purchasing an automobile liability insurance policy.
Despite being a mandate, more than 29 million drivers, according to Insurance Research Council (IRC), continue to drive without car insurance for the simple reason that they find car insurance premiums a costly burden. The website of independent car insurance firm Insure on the Spot, however, tells drivers that being uninsured can prove to be much more costly than being covered, especially if they cause an accident. The firm also says that, by going online and requesting an independent firm for insurance quotes, then drivers will definitely find a policy that provides the kind of coverage that they need at a cost that will not hurt their pocket. Besides, asking for quotes and shopping for an insurance policy online is also much easier, faster and more convenient than personally going from one provider to another only for the purpose of comparing prices.read more