This coverage helps pay for the injuries or damages you cause in a car accident, including those of the other driver and their passengers. Credit institutions also often need you to have car insurance with full coverage if you are going to lease your vehicle. He is passionate about using his knowledge of economics and insurance to bring transparency to financial issues and to help others trust their movements of money. However, you don't need car insurance in New Hampshire and Virginia to operate a motor vehicle legally.
If a vehicle's liability insurance coverage ends or is canceled during the registration period, you must re-insure the vehicle, pay the uninsured motor vehicle fee, temporarily deactivate the license plates, or deliver the license plates to the DMV permanently. However, the costs often exceed the minimum limits, so you may want to consider increasing your coverage above the state's minimum car insurance requirements. Keep in mind that the minimum car insurance requirements do not include comprehensive insurance or collision insurance, which are part of full coverage policies. For most drivers, it's simply easier to meet the state's minimum auto insurance requirements than it is to take out alternative insurance, and it's certainly less risky.
While minimum coverage is the cheapest insurance you can buy, it may not cover all your expenses after an accident. This means that car insurance coverages and limits that work for a friend or family member who lives elsewhere might not be right for you. NerdWallet has put together the minimum requirements by state so you can quickly and easily find the amount of car insurance you need to drive legally. MoneyGeek compiled a list of each state's auto insurance requirements and compared the rates with the most coverage plans to help you decide which policy is right for you.
If you drive an uninsured vehicle and are involved in an accident, the other driver can notify the DMV that their vehicle is not insured as part of reporting the accident to the DMV. By comparing prices, you can pay more than the minimum insurance required without breaking the bank. And while this option costs less than car insurance, it leaves drivers without any coverage in the event of an accident. Insurance companies can include in their policy premium the driving history of anyone of driving age who resides in the insured's home.