Why Is Auto Insurance Mandatory?
All motorists are responsible for maintaining at least state-mandated minimums for auto insurance liability coverage on their vehicles. Driving without insurance will result in you earning a fine, getting your car towed, and possibly having your driving privileges suspended. Many states also require uninsured motorist coverage due to rising numbers of drivers ignoring state laws requiring at least minimal amounts of liability insurance. Here’s why vehicle insurance is mandatory.
Protect Against Uninsured Motorists
People who drive without auto insurance coverage risk more than losing their vehicles. They also place others at risk. Unfortunately, many drivers ignore the insurance requirement or can’t afford it and choose to drive illegally without insurance. According to Bankrate, about 6% of motorists are uninsured. In many states and locales, the percentage is closer to 25% or more, so many states require uninsured/underinsured motorist coverage.
People who drive without auto insurance coverage risk more than losing their vehicles. They also place others at risk. Unfortunately, many drivers ignore the insurance requirement or can’t afford it and choose to drive illegally without insurance. According to Bankrate, about 6% of motorists are uninsured. In many states and locales, the percentage is closer to 25% or more, so many states require uninsured/underinsured motorist coverage.
Pay for Other People’s Medical Costs
Personal injury liability coverage pays up to policy limits when you cause an accident that injures one or more people. The coverage pays up to a predetermined amount for injuries to one person and a maximum combined total for all medical costs when more than one is injured. The coverage doesn’t apply to the driver of the vehicle that caused the accident but would apply to any passengers, pedestrians, and passengers in other vehicles.
Personal injury liability coverage pays up to policy limits when you cause an accident that injures one or more people. The coverage pays up to a predetermined amount for injuries to one person and a maximum combined total for all medical costs when more than one is injured. The coverage doesn’t apply to the driver of the vehicle that caused the accident but would apply to any passengers, pedestrians, and passengers in other vehicles.
Compensate Others for Property Damage
Property damage liability coverage works similarly to personal injury coverage. It pays up to policy limits for any property damage you might cause to property owned by others, including cars, belongings, and real property. If a passenger in your vehicle has property damaged, your insurance covers that cost up to policy limits. The policy also has a maximum combined total per accident for property liability.
Property damage liability coverage works similarly to personal injury coverage. It pays up to policy limits for any property damage you might cause to property owned by others, including cars, belongings, and real property. If a passenger in your vehicle has property damaged, your insurance covers that cost up to policy limits. The policy also has a maximum combined total per accident for property liability.
Reduce the Number of Potential Lawsuits
One of the primary reasons why auto insurance is mandatory in virtually every state is to reduce the potential for lawsuits tying up local court systems. Liability insurance will pay up to policy limits for medical costs or property damage you might cause others to endure. You also might live in a state that requires personal injury protection coverage, which pays your medical bills up to policy limits. Because insurance pays for the harm done, there is less need to take matters to court.
As you can see, there are many reasons why auto insurance is mandatory for all drivers. If you're looking for an
auto insurance
policy that fits your needs and budget, contact XL Brokerage Inc today.
One of the primary reasons why auto insurance is mandatory in virtually every state is to reduce the potential for lawsuits tying up local court systems. Liability insurance will pay up to policy limits for medical costs or property damage you might cause others to endure. You also might live in a state that requires personal injury protection coverage, which pays your medical bills up to policy limits. Because insurance pays for the harm done, there is less need to take matters to court.
As you can see, there are many reasons why auto insurance is mandatory for all drivers. If you're looking for an auto insurance policy that fits your needs and budget, contact XL Brokerage Inc today.
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