In all U.S. states, except in New Hampshire, carrying auto liability is a must for all those who want to have driving privileges. New Hampshire is the only state where drivers are not required to carry auto insurance coverage; the state, however, does not stop them from purchasing an auto insurance policy if they choose to. In the state of Virginia, on the other hand, drivers have the option to either carry auto liability insurance or pay the state’s Department of Motor Vehicles (DMV) the required uninsured motor vehicle fee as an alternative to purchasing an auto liability insurance policy). Thus, drivers, who will be caught driving or who will get involved in accidents and fail to show proof that they carry auto liability insurance, face the risk of having their driver’s license suspended, be required to file an SR-22, or pay fines. To make sure that they are covered, drivers are, therefore, required to show proof of financial responsibility whenever they renew their license or register their car.
States, where carrying auto liability insurance is a mandate, require drivers to purchase either a tort insurance policy or a “no-fault” insurance policy. The tort insurance policy in required in thirty-eight states known as “tort” or “fault” states; the “no-fault” insurance coverage is the policy required in 12 states, also called “no-fault” states.
In the tort or fault system, compensation to accident victims is paid by the at fault driver’s insurance provider. If the compensation paid by the insurance firm is not enough to fully cover all the damages and losses suffered by the victim, then the victim may file a civil lawsuit against the at-fault driver for further claims. In the event that both drivers are found to be partly at fault, then both pay each other, with the amount of payment based on the degree of their accountability in the accident. Compensation should cover cost of medical treatment, wages lost, and pain and suffering.
Under the “no-fault” system, drivers who get involved in accidents are paid by their own auto insurance providers, regardless of whose fault the accident is. The states of Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah recognize the “no-fault” system.
Millions of drivers, however, purchase a car insurance policy but stop paying their premium right after renewing their license and registering their car. The most common reason why they do this is the high cost of auto insurance. By using free auto insurance quotes, however, law firms like Habush Habush & Rottier S.C. ®, for instance, says that drivers will surely find the most ideal insurance deal, regardless of their driving history, credit history, age and driving experience. Any information about the best auto insurance which will fit drivers’ budget can be provided by a truly reliable independent car insurance firm.Read More