When we say mandatory auto insurance, we’re really talking about the law that requires motorists to carry car insurance. Unless you can afford to pay the monthly premiums, you may be subject to being pulled over by a police officer. Thankfully, Wisconsin’s new law goes into effect on June 1st. As a result, law enforcement officers will ask motorists to produce proof of insurance if they’re stopped for a traffic violation. The proof of insurance will typically be a card that is provided to motorists by their insurers.
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The debate about mandatory car insurance dates back to the first cars. Many drivers were concerned that without car insurance, they wouldn’t be able to pay for damages if they got into an accident. In some cases, the car owners couldn’t afford the damages, so the government passed laws that made car insurance mandatory. Today, over 49 states have mandatory car insurance laws. And the debate over whether or not these laws are needed is continuing. Let’s look at why we should have auto insurance laws.
There are two kinds of mandatory car insurance: liability and comprehensive. Liability insurance applies when you are at fault in an accident and another driver’s property is damaged or destroyed. Although some states don’t require this coverage, they do recommend that you purchase liability insurance regardless. Liability insurance comes in two different categories: property damage and bodily injury coverage. Property damage insurance is typically required by law, while bodily injury insurance can be purchased for added protection.
In Washington, health insurance and auto insurance are not mandatory. Health insurance protects the individual, but liability insurance covers other people and their property. If the at-fault driver isn’t liable for damages, then the victim is unlikely to receive any compensation. Mandatory auto insurance laws have helped protect all of these individuals, but there is no guarantee that you will get the compensation you deserve. If you’re in an accident, it’s in your best interests to buy car insurance as soon as possible.
Even if you’re not in a car accident, it’s still wise to have some form of car insurance. Michigan’s auto insurance laws require drivers to carry personal protection coverage (PIP), bodily injury liability coverage (BIL), and property protection insurance, which covers the other party’s property. And because liability coverage is required in Michigan, you can get a lower premium with the personal protection insurance you choose. You’ll also be able to save money by not having to worry about being responsible for any damages caused by your negligence.
Virginia, New Hampshire, and Oregon are two states where mandatory auto insurance is optional. Although Virginia does not require drivers to have insurance, they must still have some form of financial responsibility. If you get into an accident with an uninsured motorist, you’re responsible for paying damages up to $50,000. If you don’t have car insurance, you’re at risk of losing your driver’s license until you pay off the debt. In other words, mandatory auto insurance is essential for your protection.