Most jurisdictions in the United States require car insurance. But why? Is it really necessary? These are questions that many people have asked since laws requiring car insurance became commonplace. A little research results in the conclusion that yes, car insurance is really necessary. Laws requiring auto insurance have been passed nearly everywhere in the Unites States for good reason. Such laws protect people from financial difficulties caused by an accident with an uninsured driver. Of course, such accidents still happen. However, they have become much less common since laws requiring car insurance were passed.
Auto insurance laws
Auto insurance laws vary from state to state, and can be quite complex. However, you don’t have to figure them out all on your own. Your insurance agent, such as Runnels Insurance of Brandon, FL, can help you get a policy which follows all applicable regulations. Thankfully, there are some similarities between the car insurance laws of most states. For example, most states require liability coverage. Liability coverage ensures that you (or at least your insurance) are able to pay for any damages to property or injuries caused by an accident in which you are involved. Some states require that your insurance also include coverage for your own injuries. States that require this kind of coverage are often referred to as “no-fault” states. The failure to buy the appropriate auto insurance can result in fines, your car getting impounded, and even imprisonment.
Auto Insurance is required by lenders
Not only do state governments require auto insurance, all banks that do car loans require auto insurance as well. This is because their loan is essentially an investment, and they want insurance protecting that investment. While state governments require liability and sometimes personal injury protection insurance, banks require insurance that covers damages to the vehicle.