Every state of the US requires by law that all car drivers have a minimum level of auto liability insurance. However, the minimum level of cover required varies slightly between different states so its important to ensure your insurance meets the minimum level of cover for your state. Note also that driving under-insured attracts almost as hefty a fine as driving without insurance. Driving without any car insurance can cause you to face a hefty fine and also the possibility of having your driving license suspended if you are caught. Furthermore, you are required to provide proof of this to license your vehicle or renew your driver's license.
The following two groups show how the minimum level of cover varies between states, here we look at Nevada, Vermont and New york States. We can see that the minimum level of cover is lower on the whole for the state of Nevada.
Nevada Minimum Liability Requirements
$ 15,000 for injury or death to any one person
$ 30,000 for injuries or deaths for two or more people
$ 10,000 for damages to property in any one accident
Vermont / New York Minimum Liability Requirements
$ 25,000 for injury or death to any one person
$ 50,000 for injuries or deaths for two or more people
$ 10,000 for damages to property in any one accident
You should be aware of the tough sentences for driving without insurance in the US. Here are some statistics for different states: Arizona: Suspension of driver's license or vehicle registration, which lead to reinstatement fees. May also need to have an SR-22 for three years.
California: Fines of up to $ 500 with suspension of driver's license. The vehicle may be impounded, which would be the financial responsibility of the driver. A judge can determine if the driver should face time in prison.
Delaware: A first time insurance offenses can end with a fine ranging from $ 100 to $ 1,500. The driver's license and vehicle registration may be suspended.
Florida: You driving privileges may be suspended for three years if you are caught without insurance and reinstatement fees for your vehicle registration range from $ 150 to $ 500.
Illinois: The driver will have their license and vehicle registration suspended and pay a $ 500 fine.
Maryland: Offenders will pay $ 150 for the first 30 days of not carrying auto insurance, to be followed by $ 7 per day afterwards until the driver is carrying sufficient auto insurance. There is a $ 1,000 fine that is possibly coupled with jail time if false auto insurance is provided.
Mississippi: A first offense of driving without auto insurance results in a $ 1,000 fine and the suspension of the driver's license for one year or until proof of auto insurance is available.
Nevada: Vehicle registration will be immediately suspended in Nevada if a driver operates their vehicle without a minimum level of car insurance. Law enforcement officers can remove the vehicle's license plate, and a $ 250 reinstatement fee must be paid to have them returned
Texas: First offenses for driving without insurance face fines in the range from $ 175 to $ 350, and for additional offenses up to $ 1,000. The driver's license will be suspended and the vehicle will be impounded.
Washington: driving without minimum insurance faces a minimum fine of $ 450
Types of Car Insurance
There are 2 principal types of car insurance that you can purchase – full coverage and limited coverage. If you bought your car with the help of a loan then you will have no choice but to get a full auto insurance policy. This is a stipulation of the bank which requires some level of assurance for their investment in you, or rather the vehicle that you have bought with their money. In some cases, a full insurance policy still leaves a small percentage for you to pay in the event of a claim being made. Limited cover auto insurance is made available by most insurance companies as long as there are no loans on the vehicle. Be aware however, that this sort of policy generally means your car is not covered for any repairs in the event you are at fault in an accident. The limited insurance policy cover is the minimum that is required by law in states such as Nevada.
If your vehicle is not worth a lot of money then a limited type of policy is probably the best route to take. If your vehicle is worth a significant amount of money then you will probably want to consider the full cover insurance policies. One suggested route is to get a couple of quotes for minimum liability auto insurance cover and then decide how much more you think you can afford beyond this, on the basis that if you can afford more than limited cover then this is better, otherwise you will be facing a hefty bill if your vehicle is damaged or destroyed in an accident and you wish to have it repaired or replaced. This is especially important in the scenario that you are found at fault, or the other party at fault turns out to be driving illegally ie. without insurance.
- Medical Payments – this cover pays for your medical expenses in the event of an accident
- Comprehensive cover – this level of cover pays for losses from fire, theft, storm, etc and the costs of repairing or replacing your vehicle
- Bodily Injury – this policy option will pay for injury to others when you are found to be at fault in an accident
- Personal Injury Protection – in no-fault states, this cover provides for a wide range of medical expenses
- Uninsured / Under-insured Motorist – this provides cover for you if another driver you are involved in an accident with is not insured or is under-insured
- Collision cover – covers repair costs for damages to your own vehicle
- Deductible – an amount you agree to pay in the event of a loss – this is like an excess charge that you are liable for
- Property Damage – pays for property damage sustained in the event of an accident
- Emergency roadside assistance and towing services if you break down or your vehicle is un-drivable after an accident
- Windshield glass repair service
