Is Auto Insurance Required in Every State?

Posted in Auto Insurance , Liability

February 14th, 2009

In the United States, every state in the union (with one exception), from Alaska to Wyoming, requires auto insurance of some form. This means that every person who owns a car must have insurance for it. The specifics of auto insurance coverage requirements will vary from state to state, but the bottom line is, if you own a car, you must have insurance.

The automobile first began to make an impact on American life at the very beginning of the 1900s. Soon, people began to see the need for automobile insurance coverage, and then over the years it became the norm as well as the law. Today, auto insurance is required in every state except one. The terms and specific requirements of each state will vary, with some states requiring more robust minimums than others. The only state that does not require automobile insurance is New Hampshire.

Other states, like California, have set minimum requirements for auto insurance. In California, the minimum liability required for a passenger is $15,000 for injury or death of one passenger; $30,000 for two people; and $5,000 for damage done to property (such as another car). Whoever opts for these minimum auto insurance requirements will pay a lower monthly premium, but will have more to pay out if they get into an accident.

To find out the rules, regulations and requirements for auto insurance coverage in your state, be sure to sit down with an auto insurance expert and go over any and all questions you may have. It’s critical that you’re informed when it comes to auto insurance coverage requirements.