Number of states mandating automobile insurance
Proof of financial responsibility is in fact, car insurance.But there are other options in providing proof of financial responsibility.(Table 1 below lists the minimum liability limits required in each jurisdiction.)Twenty two jurisdictions require uninsured motorist coverage (UM): Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin.UM compensates policyholders when another driver who is at fault for the accident (1) has no auto liability insurance or (2) is a hit-and-run driver.The reasons why vary from the cultural makeup of the state’s population that resists mandatory requirements such as New Hampshire to studies by various groups that indicate mandatory insurance is not a good idea..What is posted acts in a sense as insurance in case the driver is the cause of the accident because what is deposited will be used to pay for damages and injuries sustained.You usually will be required to buy property damage liability insurance to repair the vehicles of anyone you hit.
It is considered to be so important most states require it by law.Auto liability insurance is mandatory in 49 states and the District of Columbia.New Hampshire, the only state that does not require auto liability insurance, requires drivers to show that they are able to provide sufficient funds in the case of an at-fault accident (i.e., financial responsibility).No, all states do not require car insurance, but all require financial responsibility to operate a vehicle on the roadway.
Every state requires that you meet financial responsibility requirements through insurance, a bond or some other approved means that show you are able to pay if you cause damages to another person or property in an automobile accident.New Hampshire (NH): The owners of motor vehicles must satisfy a requirement that is personal in nature.They do not make monthly payments for car insurance but instead must prove that they can pay out of their own pocket in case of an accident.Each state renews its laws annually, so some states that had no insurance requirements in the past now do.