Is Liability Coverage Required In Every State?

In Ohio, we all know that in order to legally drive on city streets and the state’s highways and byways, we need to carry at least the state minimum requirements for auto insurance: Bodily

Injury Liability Coverage, as well as Property Damage Liability Coverage. But that isn’t a nationwide requirement–each state dictates how much and which type of insurance a motorist must carry.

To answer the question, “Is liability coverage required in every state?”, we can say that 49 out of the 50 United States do require some form of coverage. However, regardless of specific requirements, one thing that is universal across all states is that a driver must prove financial responsibility. This is one purpose of car insurance: it proves that if you are involved in an accident, you can provide the needed resources to pay for car repairs and medical bills if need be.

As of right now, there is only one state that does not require that drivers carry a form of auto insurance–that state is New Hampshire. If you choose to drive in New Hampshire without an auto insurance policy, you are legally required to demonstrate that you meet New Hampshire’s Motor Vehicle Financial Responsibility Requirement of $100,000 per registered vehicle. This sum is the same as the total amount typically covered by an auto policy, and it has to be proven by depositing the money into a bank account and providing a receipt to the state’s department of safety. For those who do not have this amount of disposable income, an insurance policy is a must. It’s also required by law for anyone who has a history of driving under the influence or poor conduct surrounding an accident.

Minimum Auto Insurance

For countless reasons, auto insurance requirements vary state by state, and liability insurance is a broad term that encompasses several kinds of protection. These can include liability insurance to cover bodily injury (BI) and third-party property damage (PD), but also third-party medical coverage or personal injury protection (PIP) for your or your passengers’ health care bills. Uninsured and/or underinsured motorist insurance could also be required so that you are protected even if the other driver is not. Sometimes certain coverages are optional but recommended, and you can always opt for higher levels of coverage for each type. However, the point here is that every state has some level of required protection.

Why Is It Mandatory To Have Car Insurance?

Not everyone has overflowing bank accounts that can supply funds for auto repairs, medical bills, lost wages, and more–auto insurance covers that gap. Liability insurance and other coverage options protect both the policy carrier and the drivers around them on the road in the case of an accident. It means that even if a worst case scenario happens, you will not be severely impacted financially, because your insurance coverage will help you to pay for covered damages. Driving a vehicle is one of the most common yet risky activities we all regularly engage in. Having sufficient insurance coverage brings drivers peace of mind, knowing that they are protected in the event of an accident, and generally won’t be in legal trouble due to lack of insurance. Driving without insurance however, could bring fines, penalties, license and/or registration suspension and revocations, depending on the state.

Many people opt to carry only the state minimum liability coverage, as it is generally a more affordable option. Others choose to have higher limits on their insurance coverage. Low limits and premiums can be tempting, but they could mean that a driver isn’t well covered in the event of a serious accident. An important question to answer is: “How much out-of-pocket expense can I afford if damages or legal fees exceed my coverage limits?” The savings up front could lead to higher expenses down the road. 

Your Trusted Source Of Car Insurance In Kent, Ohio

There are countless variables–personal and from state to state–that need to be considered when deciding on the right auto insurance policy. These are things to discuss with your trusted local provider of car insurance in Kent, Ohio. At BK Insurance & Financial Services, our goal is to provide our customers with superior service and competitive rates, all while taking the time to truly understand each and every individual’s unique insurance needs. Whether you’re looking for auto, home, health, business, or life insurance, our world class offerings bring you the peace of mind and solid protection you and your family or employees deserve. Contact us today to learn more about available coverage options.