Driving without Auto Insurance, is it Legal in USA?

Driving without Auto Insurance, is it Legal in USA?

Finding the right auto insurance coverage may seem more of a hassle than it’s worth, but trust us. It is 100% necessary to carry adequate auto insurance. Not only is it the law to have auto insurance, but it’s also a wise means of protection for your vehicle and also for your loved ones. Auto insurance gives you the ability to call upon your insurer for financial help when you have been involved in an accident. They will walk you through the correct procedures to get your vehicle repaired and medical bills paid for. Knowingly not carrying the right of coverage is a foolish move on any driver’s part.

It is illegal to operate a vehicle on public roads without carrying adequate auto insurance. Each state within the United States has its own requirements that tell a driver what type of coverage is needed and how much coverage to purchase. This is only a minimum amount though. Any driver is invited to carry more than the minimum requirement of auto insurance. In fact, most experts recommend carrying double to triple the amount required by the state. This is due to the rise in medical costs and vehicle repairs.

Make sure you know your state’s minimum requirements before you purchase any auto insurance. While every state’s requirements vary, there are a few coverage options that are the same. Each state demands all drivers carry two liability coverage options, known as bodily injury and property damage. In both of these options, the bodily injuries and property damage that are sustained are covered for the other driver, not the policyholder. In the event of an accident where the policyholder is found to be at-fault, a claim is made to the policyholder’s insurance company, and that insurance company will pay for any injuries and physical damage sustained to the other driver.

How does the policyholder get covered by the insurance company? There are many coverage options available that will protect the policyholder and the vehicle the policyholder owns. However, these need to purchased in addition to the two above mentioned liability coverage. Then the policyholder and members of the policy and/or household will also be covered.

If looking at the state requirements for auto insurance, you will notice three numbers separated with a backslash, looking something like this: 25/50/25. These numbers explain the minimum amounts required to purchase for bodily injury and property damage liability. The first two numbers are referring to bodily injury, while the last number is for property damage. The first number, in this example it’s 25, indicates $25,000 was purchased for bodily injury per person in an accident. This means that for anyone who was injured in the other vehicle, the insurance company will pay up to $25,000 in medical bills per person. The second number, or in this case the number 50, indicates the insurance company will pay up to a total of $50,000 for all of the bodily injuries involved in the accident, but it must be the total medical bills of two or more passengers. Because $25,000 was purchased for bodily injury per person, either two people can have medical bills of $25,000 each or a combined number of people can have up to $50,000 in medical bills paid for by the insurance company.

The third number in the example, or 25, refers to $25,000 in property damage liability. When you damage another person’s property, say their car, a fence, a pole, a fire hydrant, etc, the auto insurance company will pay for the repairs of that property up to the amount of $25,000.

For any auto insurance coverage, including bodily injury and property damage liability, when the medical bills or repair costs have exceeded the amount the policyholder has purchased from the insurer, the policyholder is then responsible for the remaining balance. This is usually paid for using savings or other assets the policyholder has in possession. For this reason, experts recommend carrying a liability policy of 100/300/100 to help the policyholder avoid losing assets in court to help pay for the damages incurred.

In some states, more than just this basic liability is required. A coverage relating to under insured or uninsured is mandatory, mostly in the form of motorist but sometimes also in the form of property damage too. Under insured and uninsured motorist bodily injury is somewhat similar to bodily injury liability, except in this case it is protecting you and will cover your injuries if you happen to be in an accident with someone who does not carry enough insurance or who doesn’t carry any insurance at all. Because they don’t have insurance, if they are at-fault for the accident, you will have to pay for your own injuries. Because that isn’t fair to you, the state tells you to purchase this coverage so your insurance company will be financially responsible for your medical bills, up to the amount you purchase.

Under insured or uninsured motorist property damage liability is similar to the property damage liability discussed earlier, but here it is covering the policyholder’s property when the under insured/uninsured driver has damaged it. Just like with under insured or uninsured motorist liability, the property version will force your insurance company to pay for the repair costs of your property when it has been damaged by an under insured or uninsured driver.

The other coverage that is required by a few states is known as personal injury protection, or PIP. This is a coverage option that will pay for the policyholder’s injuries when the policyholder is the driver at-fault in the accident. It will cover not only the policyholder, but anyone in the vehicle at the time of the accident or any member of the policyholder’s immediate household.

There are additional coverage options to the ones mentioned here that can be purchased through your auto insurance company. They will  help protect you from having too little insurance and having to pay for the accident-related expenses yourself. While most accidents are minor with little expenses to pay, some accidents are deemed as major, costing thousands of dollars. When no insurance is carried, the driver is outright breaking the law and will be punished when caught. The punishments range from termination of registration to expensive fines to jail time. Auto insurance is always necessary to drive legally in the United States of America.


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