Question

Is car insurance required?

Yes, car insurance is required in 49 states, including Washington, DC, to cover potential damage and bodily injury costs. New Hampshire is exempt from mandatory car insurance laws, as drivers only need to prove financial stability if they cause an accident.

Why is car insurance required? 

Financial protection: Car insurance ensures drivers can cover costs after an accident. It helps pay for your car, the other person’s car, medical bills, and legal costs, even if the accident is your fault. 

Legal protection: In all states except New Hampshire, car insurance is mandatory. If you don’t have insurance, legal action can be taken against the vehicle owner. It also helps create a safer society and prevents individuals from facing huge financial debt. 

Protects assets: Car insurance helps protect the savings and assets you’ve built over your lifetime. If a sudden accident happens, you won’t need to break into your savings. 

Protects your car: One of the most important points is that it protects your car. Even if your vehicle is hit by an uninsured driver, your insurance can step in and cover the repair expenses. 

What are the consequences of not having car insurance? 

• License suspension or cancellation 
• Huge fines 
• Suspension of vehicle registration 
• Jail time 
• SR-22 filing 
• Financial liability 

What does car insurance cover? 

Liability: Covers the cost of damages or injuries caused to others by you. 

Collision: Covers damage to your car caused during an accident. 

Comprehensive: Provides broad protection, covering non-collision damage such as theft, fire, vandalism, falling objects, glass damage, and more. 

Medical bills: Covers the cost of medical bills for injuries caused to you or others.