What Are State Auto Insurance Regulations?
America today is not the place it was a year ago. Prospective-driven drops on Wall Street have led to penny-pinching on Main street. Americans need to find a way to cut back. Personal savings have become non-existent, the kids college fund has disappeared, and insurance suddenly seems to be a little pricier. ‘Stick to the minimums’ becomes the new slogan, especially with car insurance, but when the minimum amount of car insurance differs by state, it’s difficult to figure out exactly where that minimum is.
Liability Insurance
In every state except Florida, New Hampshire, and Wisconsin, citizens are required to purchase liability car insurance. This means that, when an accident happens, the person liable for the accident is able to pay for the damages. There are three liability minimums which vary by state: bodily injury liability for one person, liability for all bodily injuries, and property damage liability. These coverages do, of course, vary, and some states may require a minimum coverage of up to one-hundred thousand to cover all bodily injuries.
Personal Injury Protection (or PIP)
PIP insurance covers the injuries sustained by the policy holder (you) and is required in Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah.
No-Fault Insurance
No-Fault auto insurance covers an accident regardless of whether or not it was your fault. This means that even if the other person crashed into your car, your policy still must cover the medical bills for you and your passengers. No-Fault car insurance is required for residents of Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Uninsured Motorist Coverage
Uninsured Motorist Coverage is required in Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Washington D.C., West Virginia, and Wisconsin.
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