Why is car insurance mandatory?

Driving without a proof of car insurance is illegal in our states laws, but since when? And why is car insurance mandatory? A car insurance is a legal requirement which proves that you can afford to pay the damages if a car accident occurs. And it actually can help you save a lot of time and money.  

Why is a car insurance mandatory?

Having a car insurance is mandatory because it is protection for all drivers. Just as our laws about use seatbelt, drive till certain age, not drinking alcohol when we are going to drive, and many others are there for a reason, and we should not skip them. 

In the U.S. there are a couple of states in which a car insurance is no required. But still, if you drive a car, you have the responsibility to demonstrate that you count with the sufficient assets to pay damages and medical bills if you are found at fault of a car accident. 

When did car insurance become mandatory?

Since 1927 in the United States it is required to get at least an auto liability insurance for all drivers. A liability insurance means that the other driver is cover by the damages you may cause. But this will not cover the damages of your car or injuries that you and your passengers may face. 

When we choose an insurance coverage that can cover the other driver damages and our damages, we call it full coverage. There are many types of coverages you can choose, but the minimum limits may vary by state because they have different insurance laws. 

Is car insurance mandatory in California?

The auto liability is on the minimum requirements by the California law. And the minimum requirements are: $15,000 for injury per person, $30,000 total for injury and $5,000 for property damages. 

When driving in California, you should always carry a proof or insurance in your car, also will be asked when renewing your vehicle registration.  In case that the DMV doesn’t get a proof of insurance of your vehicle, they can suspend your registration. Until you submit a valid car insurance, you are not allowed to use your car or even park on public roadways.

Types of car insurance coverages 

Even thought the liability insurance is the state minimum, you should know all the types of car insurance coverages. You may find it practical to add full coverage for you and your vehicle. 

Auto liability insurance 

When you are responsible for a car accident, you must pay for the other drivers damages. By law, you will need an auto liability insurance to prove you are financial responsible. 

Bodily injury liability

A bodily injury insurance is part of the auto liability insurance, this will cover the costs of medical bills for the other driver and the ones that comes with them. 

Medical payments and personal injury protection

This coverage will help you with the costs of medical expenses for you and your passengers. Even if you are at fault or the other driver. 

Collision coverage

As part of full coverage, the collision coverage covers the damages of your vehicle if an event accident with another vehicle or object occurs. It doesn’t matter who’s at fault, you just will need to pay your deductibles.  

Comprehensive coverage

What about the many other types of risks that can damage your vehicle? Maybe theft, vandalism, fire, or other natural events.  For those, you will need comprehensive coverage to repair or replace of vehicle.

Uninsured and under insured motorist coverage 

If you get in a car accident with a driver who is underinsured or even uninsured you may need this coverage. This will pay for injuries for you and your passengers, there is even a type of coverage for car damages, but the uninsured driver must be identified. You may not want to deal with an uninsured driver, now you understand why is car insurance mandatory?

Penalties for Driving Without Insurance 

Driving a car without the minimum coverage it can carry to penalties such as expensive fines, license revocation or registration suspension. In some states the consequences can be time in jail, impound of vehicle and confiscation of license plates. Also, if due to a car accident, you get sued without a car insurance you can get in more legal problems and the amount to pay will increase.