Is car insurance mandatory in America?
In almost all of America, yes, car insurance is mandatory. There is only one exception:- 49 out of 50 states require drivers to carry active car insurance policies. These states have laws mandating specific minimum amounts of liability coverage. This means you need to be financially responsible for damages caused to others in an accident, even if you're not at fault.
- New Hampshire is the only exception. They don't require car insurance, but you do need to demonstrate financial responsibility in another way. This could involve posting a bond, depositing cash with the state, or having a certificate of self-insurance.
It's important to remember that even in New Hampshire, having car insurance is highly recommended. It protects you from financial ruin in case of an accident, even if you're not legally required to have it.
Car insurance
Here are some additional details:- The minimum required coverage amounts vary by state. You can find specific details for your state by searching online or contacting your local Department of Motor Vehicles.
- Many states require additional coverage beyond the minimum, such as personal injury protection or uninsured motorist coverage.
- Even if you're not legally required to have car insurance, getting a quote is always a good idea. It can help you understand the costs involved and make an informed decision about your financial protection.
Car insurance in America
For all other states, some form of car insurance is mandatory. The specific requirements vary by state, but they typically include:- Minimum liability coverage: This covers bodily injury and property damage to others in an accident that you cause. The minimum amounts vary by state, but they are often around $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage.
- Proof of insurance: You must be able to show proof of insurance when you register your car, renew your registration, or get pulled over by the police.
It's important to note that even though New Hampshire doesn't require car insurance, it's still highly recommended. Driving without any form of financial responsibility leaves you personally liable for any damages you cause in an accident, which could be financially devastating.
For all other states in the US, some level of car insurance is mandatory. The specific requirements vary by state, but they typically include minimum amounts of liability coverage for bodily injury and property damage. You can find more information about the specific requirements in your state by visiting the website of your state's Department of Motor Vehicles (DMV).
