Carrying Car Liability Insurance: A Mandate in the US

Purchasing a collision insurance policy may be the most logical way of protecting your car, meaning, of you having the needed cash for repairs or replacement in case it gets damaged in an accident or catches fire, or gets stolen. To be able to afford, and not default on paying, compensatory damages to a victim of an accident wherein you are at fault, then the best way is to carry car liability insurance.

Collision insurance, which you may or may not want to purchase, is designed to protect you; a car liability insurance, however, which is designed to protect an innocent accident victim, is something that you will need to have as it is mandated in all US states, with the exception of New Hampshire and Virginia.

The car insurance law was first made compulsory in 1925 in the states of Massachusetts and Connecticut. Other states eventually also enacted their own mandatory car insurance liability laws. The reason behind the mandate is to make sure that at-fault drivers do not default on paying accident victims the compensation the court has declared them worthy to receive.

The type of car insurance coverage that drivers will need to purchase depends on what is required in the state where they reside. In tort states, drives need to carry the tort liability insurance coverage; in no-fault states, however, what drivers need to have is no-fault car insurance, also known as Personal Injury Protection (PIP).

Under the tort insurance system, an accident victim is allowed to file a civil lawsuit against the at-fault driver for damages, which include cost of medical treatment and hospitalization, loss of wages, pain and suffering. A total of 38 states require this type of coverage on all their drivers.

In states where the no-fault car insurance coverage is required, however, compensation is paid by the respective insurance providers of the drivers involved in an accident. This eliminates the need for the victim to file a civil lawsuit against the at fault driver, as compensation will be paid regardless of who is at fault in the accident. No-fault insurance is required in Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New York, North Dakota, and Utah. In the states of Pennsylvania, New Jersey and Kentucky, drivers have the option to carry either no-fault car insurance or full tort car insurance.

One bothering thing, though, is the fact that not all drivers carry car liability insurance because they find insurance premiums too costly to pay. Drivers can go to independent car insurance companies for help in finding the best possible policy regardless of their driving record and the kind of car they drive. These companies help make sure that drivers also get the policy that will not be a burden to their pocket.

Leave a Reply

Your email address will not be published. Required fields are marked *