Laws Auto Insurance
The most well-known law regarding auto insurance is that if you are a licensed driver who is driving a vehicle (whether yours or someone else’s), you must have car insurance. Yet, there are drivers willing to risk not getting in an accident or getting pulled over and drive as an uninsured motorist. Here are some things to keep regarding laws auto insurance in various states.
What Are The Laws Auto Insurance Regarding Minimum Rates In Particular States?
The states with the highest minimum insurance rates are Alaska and Maine. Both states require that motorists carry a split limit policy of 50/100/25. The first number indicates (in thousands) the maximum amount an insurance company will cover for injuries to insured person. The second number (in thousands) represents the maximum amount paid to remaining persons injured in an accident. The third number (in thousands) represents the maximum amount covered in property damage. Other states with high minimum rates are New Hampshire, North Dakota, and South Dakota (25/50/25 for all three states). North Carolina laws auto insurance require 30/60/25. The state with the lowest minimum is Mississippi (10/20/5). Florida, Louisiana, and Oklahoma are a close second, requiring 10/20/10. New York and Wisconsin are 25/50/10. Texas plans to change its minimum rates on January 1, 2011 from 25/50/25 to 30/60/25. Low minimum rates do not translate into cheaper car insurance.
What Are State Penalties For Violating Laws Auto Insurance?
Penalties differ from state to state for driving without insurance. For example, Texas imposes stiff and increasing penalties with each violation. A first time conviction of driving without insurance will land you a fine that ranges from $175 to $350. Second and third offenses result in fines ranging from $350 to $1,000, the suspension of your driver’s license, and impounding of your car. Texas has a program by which it can tell if a person is driving with or without insurance. Stiffer penalties exist in Pennsylvania for violating laws auto insurance. If you are driving without insurance, commit a violation or cause an accident, and are caught by the police, the minimum fine is $300. You will also incur the costs of registering your vehicle and restoring your driver’s license. You will have to pay to get your car out of the impound lot. Your license and registration will be suspended for three months and you will not be able to transport yourself anywhere until all the problems and fines have been solved and paid. These penalties (as with penalties in other states not mentioned here) will apply if you are a visitor to a state who is just driving through or if you have a rental car registered in that state.
What Are Laws Auto Insurance in Kentucky?
Pennsylvania is known as a tort state. This means that when an accident occurs, somebody is at fault. Once that person is discerned, he/she is responsible for damages resulting from that accident. This is in contrast to a “no-fault system” (currently in use in Kentucky). A “no-fault” system allows the insured to get financial help from an insurance company when an accident occurs. They will only cover you to a certain level. It does not matter who is at fault. Kentucky was one of the first states to implement a no-fault system for laws auto insurance. Other states that have followed suit are Colorado, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
What Are Laws Auto Insurance in Mexico?
If you are a native of Mexico or just a visitor, you must have Mexican auto insurance coverage. Different types of insurance available in Mexico include bodily injury liability, no fault, personal injury protection, uninsured motorists, comprehensive, collision, property damage liability, and legal defense. Legal defense comes if you are the recipient of a lawsuit in the event of an accident. Once you have obtained Mexican auto insurance, you are required to carry proof of insurance with you. They also require additional Mexican auto insurance if you are driving farther into Mexico. For example, several businesses are located around the United States-Mexico border. These companies must cross the border in their daily course of business. If you are going to travel numerous miles into Mexico, you are required to have more Mexican-approved auto insurance. Enter your zip code at the top of the next page to receive your free car insurance quote and learn more about car insurance laws.