Why Auto Insurance Is Mandatory Across the United States

Having car insurance is a very important part of owning and operating a vehicle. Almost every state requires at a minimum liability on your insurance so that if you cause an accident the other party can have their physical or bodily injury paid for. If you have a loan on your vehicle the lending company will require comprehensive and collision coverage on it so that if something happens to the car they aren’t left with a depreciated vehicle that the owner of the car has stopped making payments on. 

There is a Wikipedia page, found here, that discusses the history of insuring a vehicle and how it differs around the world. As the article notes there are coverages for all types of vehicles that are meant to be driven on the road such as cars, motorcycles, trucks, and motor homes. In the United States, each state has an insurance commissioner and the rules around liability vary from state to state. Some have higher requirements for how much liability at a minimum should be, for instance. 

The liability coverage on a car insurance policy is split into bodily injury and property damage. The bodily injury coverage is for damage you cause other people. This can be a single limit of coverage such as $100,000. Some states, like Washington, have separate limits for the amount of coverage for bodily injury per person and a higher limit for bodily injury per accident. In that state, the minimum is $25,000 bodily injury per person and $50,000 per accident. There is a separate limit for property damage with the minimum in Washington being $10,000. 

Auto insurance Aurora CO is similar to Washington State. The bodily injury part of liability is the same, including both bodily injuries per person and per accident. They do have a higher limit of property damage with it being $15,000 per accident. It’s advisable in these two states, as well as the others, to have higher limits than the state requirements, though. If you cause a serious enough accident to exceed these limits than the other party can sue you for any costs they incur above and beyond your liability limits. 

There are coverages beyond liability coverage on a vehicle insurance policy as this article details. Personal injury protection (PIP), for example, is a coverage that covers you and your passenger’s bodily injury in an accident up to a set limit. This also covers lost wages and other expenses stemming from the accident. 

Uninsured motorist coverage is another important coverage. Despite there being laws that people have to maintain a vehicle insurance policy too many people do not. Uninsured motorist covers you if someone without insurance, or has too low of limits to cover the accident, were to cause an accident involving you. This coverage also provides coverage in the event that your vehicle is hit by a hit and run driver. There are deductibles on this coverage. As a general rule the deductible is $100 if you know who hit you and they are uninsured or underinsured. It’s a $300 deductible if it is something like a hit and run.

 

Post Author: WgeeLinks

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