What is auto insurance and why do we need it? Motor vehicle insurance is a type of bond or policy that ensures drivers of motor vehicles are financially covered in the event of an at fault accident where damage to property or personal injury has resulted. Most insurance policies also carry a deductible or excess coverage and this is the portion of the damage the driver is responsible for. The rates for insurance policy deductibles vary greatly from state to state and policy to policy. The deductible can be as little as $200 or as much as $1,000. Generally speaking, the higher your deductible the lower your insurance premiums will be and vice versa.
Have you ever wondered if all states in America require automobile insurance? The answer is no, all states do not mandate you carry motor insurance, but most do require drivers to carry some sort of financial responsibility in exchange for the privilege of driving.
Each of the 50 states of America have varied requirements that must be met and each state mandates individual requirements in order to be able to operate a motor vehicle in that state. Virtually all states require a driver to have proof of sufficient funds available in case of an liabilities that may occur if you are involved in an accident.
There are some states where a motorist can not even register a vehicle without first providing proof of possessing liability coverage to the Department of Motor Vehicles, while others will only require a driver prove they have insurance coverage after they have been involved an accident or in the event of receiving a ticket.
North Carolina is perhaps one of the more stringent state and requires individuals to have liability coverage in order to receive a license to drive, even if they do not own a vehicle. While at the other extreme, the state of New Hampshire has very lax requirements and does not have a minimum state required insurance, but if you are found to be at fault in an accident you will then be required to purchase auto insurance and it is advisable to have some sort of coverage for bodily injury and at least 25,000 worth of coverage for property damage.
The state of New Hampshire has the least number of mandatory requirements of all states. Then there is the state of Wisconsin, for example, which does not require drivers to carry any form of auto insurance, but motorist must be able show proof of having the means of being able to pay for any damages which may result from being involved in an accident where they are proven to be at fault. These financial responsibilities can be met by possessing a surety bond, personal funds or by acquiring a certificate of self-insurance.
Following is a comprehensive list of state by state minimum required insurance listed in alphabetical order:
Alabama 20,000/40,000/10,000
Alaska 50,000/100,000/25,000
Arizona 15,000/30,000/10,00
Arkansas 25,000/50,000/15,000
California 15,000/30,000/5,000
Colorado 25,000/50,000/15,000
Connecticut 20,000/40,000/10,000
Delaware 15,000/30,000/5,000
Florida 10,000/20,000/10,000
Georgia 15,000/30,000/10,000
Hawaii 20,000/40,000/10,000
Idaho 20,000/50,000/15,000
Illinois 20,000/40,000/15,000
Indiana 25,000/50,000/10,000
Iowa 20,000/40,000/15,000
Kansas 25,000/50,000/10,000
Kentucky 25,000/50,000/10,000
Louisiana 10,000/20,000/10,000
Maine 50,000/100,000/25,000
Maryland 20,000/40,000/10,000
Massachusetts 20,000/40,000/5,000
Michigan 20,000/40,000/10,000
Minnesota 30,000/60,000/10,000
Mississippi 25,000/50,000/25,000
Missouri 25,000/50,000/10,000
Montana 25,000/50,000/10,000
Nebraska 25,000/50,000/25,000
Nevada 15,000/30,000/10,000
New Hampshire 25,000/50,000/25,000
New Jersey 15,000/30,000/5,000
New Mexico 25,000/50,000/10,000
New York 25,000/50,000/10,000
North Carolina 30,000/60,000/25,000
North Dakota 25,000/50,000/25,000
Ohio 12,500/25,000/7,500
Oklahoma 10,000/20,000/10,000
Oregon 25,000/50,000/10,000
Pennsylvania 15,000/30,000/5,000
Rhode Island 25,000/50,000/25,000
South Carolina 15,000/30,000/10,000
South Dakota 25,000/50,000/25,000
Tennessee 25,000/50,000/10,000
Texas 20,000/40,000/15,000
Utah 25,000/50,000/15,000
Virginia 25,000/50,000/20,000
Vermont 25,000/50,000/10,000
Washington 25,000/50,000/10,000
Wisconsin 25,000/50,000/10,000
West Virginia 20,000/40,000/10,000
Wyoming 25,000/50,000/20,000
|
Disclaimer